Germany Is Already Printing Money - Deutsche Marks

Seeking Alpha ^ | October 26, 2011 | Graham Summers

[little jeremiah]

By now everyone realizes that the euro is in major trouble and will no longer exist in its current form for much longer. However, the common view is that it is Greece and possibly other PIIGS countries who will be forced out if the eurozone is broken up.

But few are talking about another possibility- of Germany leaving the EU.

One who is talking about this is Dr. Pippa Malmgren, a former economic advisor to George W. Bush and a former advisor to Deutsche Bank (DB). According to Malmgren, Germany has already ordered the printing of Deutsche Marks in anticipation of a possible withdrawal from the EU.

< snip >

We also have reports of Sarkozy and Merkel screaming at each other in recent meetings. France has announced plans to possibly nationalize several banks just “in case.” And Germany has dropped more than a few hints that it’s fed up with the situation.

Heck, even mainstream “thinkers” like Alan Greenspan says the euro is “doomed” to fail.

Something very bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.

< snip >

So if you have not already taken steps to prepare for systemic failure, you should do so now. We’re literally at most a few months, and very likely just a few weeks, from Europe’s banks imploding.

[ClayinVA]

Didn’t Germany stop conscription a few months ago? It only takes 6 months to turn a raw recruit to a pretty capable soldier. It might be a good time for Germany to throw a few marks at the Bundeswehr. I know a good Colonel that speaks German and could solve the problem, but you might not like his methods.

[Delta 21]

All my pfennigs will be good again !!

[DeaconBenjamin]

to go with my eagles and rubles.

Old rubles have eagles.

[conservativguy99]

It couldn’t have happened to any more deserving people. Arrogant bastards, every last one of them. I hope Deutschland loses its shirt.

[JRandomFreeper]

Old rubles have eagles.

Double headed ones. I'm holding a silver 3 ruble piece in my hand now. I won't hold it long. It does have a higher than background radiation level.

My walking Liberties don't have that problem. ;)

/johnny

[Revolting cat!]

I find it a little difficult to believe anything coming from a “Dr. Pippa”.

[Razzz42]

“If Germany pulls out the rest will probably collapse unless they become one giant Belgium. The Horrors.”

---

Germany is the Euro. If Germany leaves then Forex investors will just move into the German Marks.

Like I said before, buy and hold gold (and silver) while the ash settles after paper currencies go up in smoke until finally one arises from the ashes to be the next world reserve currency, then sell your gold and silver for the new fiat.

[Razzz42]

Collectively, Euroland has the second largest holding of gold bullion (behind the US). With that amount in reserve, this could maintain the misery of playing the political football debt game for years and years to come.

[Razzz42]

Also have an internet pal in Belgium who said this recently...”I still got a fistfull of old dirty belgian francs notes ; which I dug out of a box just in case lol”...He speaks 3 or 4 languages, is certified to grade coins, college educated and he still has no idea what will happen.

[tsowellfan]

Question:

I’ve been delaying my trip to Italy due to the Euro being higher than the US dollar. Could this be something that changes the situation for American travelers to Europe regarding the value of the US dollar??

[TigersEye]

Like I said before, buy and hold gold (and silver) while the ash settles after paper currencies go up in smoke until finally one arises from the ashes to be the next world reserve currency, then sell your gold and silver for the new fiat.

I thought you said gold was going to become worthless?

[TheWriterTX]

Dear LJ:

By no means a financial wizard, but someone who has been following this for a while now and researching everything I can to understand what it all means.

It's my understanding that the primary risk comes from wealth contraction.

Germany is the financial powerhouse of the EU. If they walk, several countries that are teetering on the verge of economic collapse are going to default on their debts.

During the last EU bail out, Germany put itself on the hook for billions in Greek debt. Of the 110 Billion Euros lent to Greece, Germany alone fronted $22.4 Billion Euros ($30 Billion US dollars).

When Greece defaults (as it will default), those who invested in Greece, or bought derivatives based on Greek sovereign debt, will lose a projected 60% of their investment over the term.

The contraction of wealth will make it more difficult to rescue other flagging countries, including Italy and Spain. Italy, Spain, Greece, and Ireland are all on economic life support, although Italy and Ireland appear to be taking their problems seriously. Greece and Spain, on the other hand (Greece in particular) are so used to government handouts that it will come as a very unpleasant shock once the gravy train ends.

The primary concern is the domino effect; once one falls, will others follow? There is that possiblity, which is why we in America saw a strong uptick in Treasury bonds (despite the fact that our credit rating was downgraded). Our electronic "funny money" via QE is still a better risk than countries without a fiat currency.

It's not just the wealth contraction than will come from loan defaults; it's the exponential wealth contraction that will come from derivative trading based on weak notes. There will be a primary hit directly to investors, then a secondary hit to traders.

If Europe doesn't experience financial contagion, then the impact will be minimal. If serial collapses occur, it will hurt our economy, especially since we fund so much to the IMF (which lent billions to these countries, as well).

[familyop]

"The euro collapsing will without doubt have huge effects here; of course I have little to no idea what exactly,..."

Well, first, they might stuff our Treasury again, and run our dollar even more unnaturally high. Yes, more nonsense fluctuations in the markets. Our USA is in debt up to its ears (about 100% debt-to-GDP).

If the dollar were allowed to go lower with our debt and trade deficit increases, we would see manufacturing moving this way again. But with both political parties so much into socialism (one more for federal government employees, the other more for local socialists), I don't see much hope of that. Most investors want to continue the artificially high dollar, even though that's antithetical to their yells of "free market!" They don't want their dollar-favoring investments to decrease today regardless of the costs tomorrow.

Investors should be leaning more toward net energy exporters for the long run, but they're intent on riding the debt wave all the way up and promoting stealth socialist politicians to get every last penny of debt. Thus, the crazy stories about east Asia collapsing and our USA rising now (under these circumstances).

Save what you can. Stock up. Become even more self-sufficient. That's all that I can offer.

[Razzz42]

Gold becoming worthless is the worst possible scenario and you’d better hope it never gets to that point. In the meantime, gold is the last frontier in the fiat world just ask any central bank why they even bother holding gold.

[familyop]

Merkel wants ‘permanent’ supervision of Greece, warns of war
http://www.freerepublic.com/focus/f-news/2798498/posts

[little jeremiah]

Thanks - I posted this hoping to read and learn.

My tagline says what I think will happen, generally speaking...

I even save all bottles and jars and wash carefully. Glass is amazing stuff. And all clean cotton rags, I use for bandages, patches and who knows what all. I scrounge for all kinds of sewing supplies, threads, mending supplies - and have enough fabric to make clothes for lots of people - sheets and blankets for others - dozens of toothbrushes - enough soap to clean lots of people and clothes for a decade at least....

Two things missing are a hand pump and a manual way to wash clothes, but hub is a mechanical genius type. Also the garden is barely there.

[little jeremiah]

Thank you for your explanation.

Still learning!

[little jeremiah]

I found out it’s a nickname for Phillipa.

Does that help?

[TigersEye]

I have heard that.

[Razzz42]

The quick answer is that it is greed vs minimal growth. Want 25% returns on your money and social programs for all, then the budget necessary can't sustain itself, everyone and everything goes broke. Want government to live within its means and you without all the Walmart junk and everyday excesses, then a expect to live frugal and dull life. The only inbetween occurs between the two above options as you are either moving towards one or the other. We are now to the point of going broke, so we get back to frugal if we like it or not. Here's a link to Armstrong's writings. Pick through whatever looks interesting and you'll get a history lesson like nowhere else on how these monetary/banking meltdowns happen all the time on a regular basis throughout history. click here Armstrong says if they issued one Euro bond to cover all the members' debt, Euroland could survive but they aren't interested in doing what's right or heaven help us all if they are just clueless.