Greeks rush to test their luck in the Joker lottery with its ?19m jackpot as the country's borrowing
rate shot up again above 7pc.
Posted on 04/15/2010 2:47:27 PM PDT by bruinbirdman
Morgan Stanley has warned that the Greek debt crisis is setting off a chain of events that may prompt German withdrawal from the eurozone, with grim implications for investors caught off-guard.
Greeks rush to test their luck in the Joker lottery with its ?19m jackpot as the country's borrowing
rate shot up again above 7pc.
"The backstop package for Greece and the ECB's climb-down on its collateral rules set a bad precedent for other euro area states and make it more likely that the euro area degenerates into a zone of fiscal profligacy, currency weakness, and higher inflationary pressures over time," said Joachim Fels, head of research, in a note to clients.
The US bank said a bail-out for Greece may be necessary to avoid a crisis for Europe's financial system, but warned that it also "sows the seeds for potentially even bigger problems further down the road".
Mr Fels said weak states cannot easily leave EMU because they would pay a stiff penalty in higher rates, would be stuck with euro debt contracts, and might need controls to stem capital flight. It is a different calculus for Germany, which would see lower rates and might view EMU exit as the only way to ensure monetary stability.
"Obviously, we have not reached the end game yet. However, with the latest developments, such a break-up scenario has clearly become more likely. The risk is far from negligible and the consequences for financial markets would be very severe. Investors ignore the break-up risk at their peril," he said.
Jürgen Stark, the European Central Bank's chief economist, vowed on Thursday to resist pressure to help spendthrift governments out of their troubles by resorting to easy money. "Let me stress that any call to reduce the real value
(Excerpt) Read more at telegraph.co.uk ...
My money’s on Germany... literally.
When gauging how to handle a crisis, one turns to historical evidence for success. The ‘German Miracle’ sounded the best plan to me.
Go, Angela!
I hope the new Deutsch mark has pictures of great Germans on it, like Frederick Barbarossa, Otto von Bismarck, Frederick II (The Great), and Arminius.
Thank God Britain stayed out of it....
Can the Greek military keep Greece in the EU when the rioters demand the country drop out?
yitbos
And Dieter:
A little off-topic, maybe, but... Back in the ‘90s and a little into the present century, I was working free-lance for a company in Denmark and going over to Europe just about every year. Before the Euro, I’d have to change my Amerikanski dollars into several different currencies as I went from country to country. Usually, by the end of the trip, I’d have some of each currency left over, but it wasn’t enough to be worth changing back to $$, so I just kept it for my next trip. Then came my last trip before the various countries were to change to the Euro. On my next trip, any left-over German marks, Dutch guilders, and French francs would be difficult or impossible to spend, so I spent them while I still could to get rid of them.
Then I realized — “My gosh! I’m spending money like it’s going out of style!”
On the forex, Im shorting the Euro. The trend is your friend
It is better to save it, if not for yourself, then for your grandkids.
Imagine if you had some Papiermarks, Rentenmarks, or Goldmarks.
Just a quick check of an online seller has Reichsmarks at about 5 times their face value.
It’s a game of political chicken. Who will serve (left) first?
No Germany isn’t going to leave,you forget that if they can get the Czech not to mention the other Eastern countries to join the currency.
Then they get one hell of an edge.The EU was always 90% potential anyway.
Although yes,they would be more then justified in leaving right now.
The EU went to war to get Serbia and the Balkans in.
Wonder if they have the same cohesion to impose economies on members.
yitbos
I know one of the old Marks had a picture of Gauss and the equation of the normal distribution, bell curve. Most pre-Euro notes avoided military and political leaders settling for scientists and artists.
“The backstop package for Greece and the ECB’s climb-down on its collateral rules set a bad precedent for other euro area states and make it more likely that the euro area degenerates into a zone of fiscal profligacy, currency weakness, and higher inflationary pressures over time,”
This could be said of our Federal government’s creation in the US “dollar zone.” I wonder if the globalists will go to war against Germany if they pull out of the “Euro sector.” That would be a big blow to the “progress” of the NWO.
Although I am not against free trade, I am against the mindless entanglements of free trade UN treaties. If Germany steps away from the cliff of the NWO, maybe a conservative leaders of the US will have more room to do the same.
“
Jürgen Stark, the European Central Bank’s chief economist, vowed on
Thursday to resist pressure to help spendthrift governments out of
their troubles by resorting to easy money.
“
Interesting.
A voice of sanity within the EuroZone.
Thanks bruinbirdman.
Could Germany Quit Euro Over Greek Crisis?
Saturday, 17 April 2010
http://macedoniaonline.eu/content/view/13542/52/
Heisenberg, Planck, Hahn, Meitner, Mach, Born, Einstein.
A single one of these Germans and Germany had probably won WW2 and lost it at the same time. Hitler would have succeeded and a free Germany would not exist.
Schrödinger is from Austria but we seem to be responsible for Hilter so we shouldn’t be shy - same goes with Pauli - and Teller print them on our money.
Without the later Einstein wouldn’t have joined the Mannhattan Project - without Heisenbergs moral awareness Germany might have built an A-Bomb.
What about Carl the Great ? Do we leave him to France ? No way - in his cathedral in Aachen the most of german Kings have been crowned.
In fact there’s little need for a german currency but maybe for an Austrian, Dutch, Polish, Dannish, Swedish and German Money.
As I said before the best about Germany is it’s neighbours.
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