Ex-Bush Adviser: Germany Prints Old Currency in Case Euro Ditched

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  • Dimko-piperkata
    Senior Member
    • Sep 2008
    • 1876

    Ex-Bush Adviser: Germany Prints Old Currency in Case Euro Ditched

    Tuesday, 04 Oct 2011 01:06 PM

    Germany is printing deutsche marks in preparation to leave the euro common currency, says Philippa Malmgren, a former economics adviser to George W. Bush.

    "My view is that it is Germany that will have to pull out of the euro," Malmgren said at an investors' conference in London recently, according to the Citywire news website.

    "The decision has already been made by the government that leaving the euro is a possibility. I think they have already got the printing machines going and are bringing out the old deutsche marks they have left over from when the euro was introduced."

    Malmgren, co-founder of Principalis Asset Management, acknowledged that leaving the euro would be a radical move that would cause Germany's export prices to jump, but said German industries are strong enough to handle price increases, Citywire reported.

    Other countries have let currency unions before, Malmgren said, citing the report, "Checking Out: Exits from Currency Unions."

    Countries leaving currency unions are usually larger, wealthier, and more democratic and typically have higher inflation than their partners, according to the report, published by the Monetary Authority of Singapore.

    Malmgren predicts that more eurozone countries will default, causing deep changes in society, Citywire reported. "It is important to begin preparing the public to deal with this situation."

    Malmgren isn’t the only one saying the euro is in trouble.

    "The euro is nearing its ugly end," said Stefan Homburg, head of Germany's Institute for Public Finance, according to The Telegraph. "A collapse of monetary union now appears unavoidable."

    The Bundestag, Germany's legislature, approved more bailout funds for Greece but the growing rescue fund is becoming increasingly unpopular in Germany. Many economists and investment professionals say the fund is not large enough to save Greece and other eurozone countries from defaulting.

    Meanwhile, Ireland's central bank reportedly is printing Ireland's old currency in case that country leaves the eurozone. At least that's the rumor circulating in Dublin, notes Alan McQuaid, chief economist at Bloxham stockbrokers in that city.

    McQuaid, writing a guest commentary for The Guardian, says he's not sure if the rumor is true. But he does hope Ireland has contingency plans in case the euro disintegrates.

    the german folk wasnt included to decide about implementing the €....no one in germany wanted the € ...

    the D-MARK is highly welcome
    1) Macedonians belong to the "older" Mediterranean substratum...
    2) Macedonians are not related with geographically close Greeks, who do not belong to the "older" Mediterranenan substratum...
  • Onur
    Senior Member
    • Apr 2010
    • 2389

    Public opinion means nothing for eurocrats. So, it doesn't matter for them what people wants.

    The days of Euro and EU are numbered anymore. There will be major changes in Europe after that but i am quite sure about one thing; No one will miss EU and no one even remember it in few years of time, just like USSR.


    • George S.
      Senior Member
      • Aug 2009
      • 10116

      just a couple of coutries can topple the eu by defaulting.greece 300 bill,spain 800billion,italy more than 1 trillion.
      "Ido not want an uprising of people that would leave me at the first failure, I want revolution with citizens able to bear all the temptations to a prolonged struggle, what, because of the fierce political conditions, will be our guide or cattle to the slaughterhouse"


      • DirtyCodingHabitz
        • Sep 2010
        • 835

        R.I.P. EU 1958 - Sooner the better.