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Rumour Germany Orders Printing Plates To Start Printing Marks?

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Unsubstantiated rumour.

http://market-ticker.org/akcs-www?post=195126

I don't usually write on rumors, but this one simply will not go away.

Germany is rumored to have ordered printing plates to resume printing Marks, and is intending to walk. This does make sense, although the Germans would have to find a way to shield their banks from the impact of a massive shift off the Euro and into the Mark by Germans, which would spike the Mark higher and positively trash the Euro's value.

The usual answer to "why they won't" is that the Mark would become ridiculously strong and that would kill Germany's export industry, which being goods based (rather than the faux "export industry" that is often mostly services) would get plastered. The core of most commentators' thesis is that this fact would preclude Germany from doing it.

But here's the problem - playing the bailout game is a tax exactly identical to the impact of that stronger currency, and the bailout game costs you the decision-making power you retain when you are the one in control of your own destiny.

http://www.economicvoice.com/is-the-bundesbank-printing-marks-in-anticipation-of-a-euro-failure/50020943#axzz1ZStos6lN

June 27th, 2011

The ever Eurosceptic Express reports on the so far unsubstantiated rumours that have been circulating the ‘net for over a year that German marks are being printed in readiness in case the Euro fails, or Germany is forced by economics or politics to leave the single currency.

Anyone got anything more concrete that the Germans are printing Euro's?

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They can just get a few old ones, scan them in and colour laserjet print them can't they? Staples are doing various discounts on office paper at the moment, and the toner can be bought cheaply on ebay.de

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What happened to the old plates - did they sell them on ebay?

No way this is ever going to happen.

Full stop.

The fatherland will lose its export trousers overnight and even the kraut kebab shop boys know that.

File under fantasy fluff -- next to Claudia Schiffer, Halle Berry but perhaps not Liz Hurley.

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The usual answer to "why they won't" is that the Mark would become ridiculously strong and that would kill Germany's export industry, which being goods based (rather than the faux "export industry" that is often mostly services) would get plastered. The core of most commentators' thesis is that this fact would preclude Germany from doing it.

Strong enough for their firms to buy up lots of factories in other European countries on the cheap and manufacture products from there?

Germany might shed a few jobs but it isn't like corporations have the interests of their own workers and their job prospects at heart is it? All they want is more money for themselves.

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No way this is ever going to happen.

Full stop.

The fatherland will lose its export trousers overnight and even the kraut kebab shop boys know that.

File under fantasy fluff -- next to Claudia Schiffer, Halle Berry but perhaps not Liz Hurley.

I really don't get this export case. If you are making 20% margin on producing a car yet the country buying it is insolvent and then asks you to pay their debt, which amounts to more than your margin, why would you carry on down this path of mutually assured destruction? On realising the insolvency surely you can either both go to hell in a handcart or you can cut loose and save your own country. Why would Germany choose the former?

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No way this is ever going to happen.

Full stop.

The fatherland will lose its export trousers overnight and even the kraut kebab shop boys know that.

File under fantasy fluff -- next to Claudia Schiffer, Halle Berry but perhaps not Liz Hurley.

They lose them if they bail the Eu zone out as well.

So won't be a consideration.

As to the rumour, it's going to be cobblers. Theres not a chance in hell they don't already have everything they need to go back to the DM ASAP, the same will be true for the french and franc, spanish and peso and so on. Basic contingency planning.

Edited by Injin

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They lose them if they bail the Eu zone out as well.

So won't be a consideration.

As to the rumour, it's going to be cobblers. Theres not a chance in hell they don't already have everything they need to go back to the DM ASAP, the same will be true for the french and franc, spanish and peso and so on. Basic contingency planning.

Any contingency exist for England to go back to Guineas, Ryals, Angels & Nobles and for Scotland to go back to the Groat? No wonder they want independence the way King is going on

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No way this is ever going to happen.

Full stop.

The fatherland will lose its export trousers overnight and even the kraut kebab shop boys know that.

File under fantasy fluff -- next to Claudia Schiffer, Halle Berry but perhaps not Liz Hurley.

I would tend to agree with you, it sounds unlikely.

But your argument based on the strength of a new German currency is inaccurate. Just look at how Japan did with the strengthening of the Yen for just about ever. Where is the collapse in export? Look at both Japan and Germany in the 70s. What happened then?

You are repeating an argument that is pervasive but completely baseless.

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Any contingency exist for England to go back to Guineas, Ryals, Angels & Nobles and for Scotland to go back to the Groat? No wonder they want independence the way King is going on

Groats were common currency in England too.

I've hoarded a few in an ancient pipkin, sealed with wax. If this rumour is true it's time to break them out and buy a pad in Kensington.

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Any contingency exist for England to go back to Guineas, Ryals, Angels & Nobles and for Scotland to go back to the Groat? No wonder they want independence the way King is going on

There probably is a contigency for a return to metallic money somewhere, yes.

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Groats were common currency in England too.

I've hoarded a few in an ancient pipkin, sealed with wax. If this rumour is true it's time to break them out and buy a pad in Kensington.

:) Kensington's not what it used to be, I'd rather have a nice place outside London or even abroad

There probably is a contigency for a return to metallic money somewhere, yes.

Can't come too soon for me, although I will resent having to put a sov in the parking machine at Watford's Harlequin multistorey, although the cost per 2 hours is not much less than that now

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If, there was any real truth in this rumour, I'd of expected Gold to be up a lot more than it is. Although it was up today when everything else was down so perhaps..

The thing is, if the US or France can plant rumours so can Germany.

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Sure, 20% of German GDP is exports.

So if you go back on the DM which will strengthen, just print a hell of a lot of DM to buy gold.

You end up a few years later with a weak currency and strong exports along with a f@ckload of gold. win win.....

Obviously this will not occur to them.

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[quote name='interestrateripoff' timestamp='1317410476' post='3133876'

Anyone got anything more concrete that the Germans are printing Euro's?

Eh?

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Sure, 20% of German GDP is exports.

So if you go back on the DM which will strengthen, just print a hell of a lot of DM to buy gold.

You end up a few years later with a weak currency and strong exports along with a f@ckload of gold. win win.....

Obviously this will not occur to them.

And in the meantime their cost of imports will go down so much that they will be able to drop their prices gaining further market share.

Edited by _w_

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Not going to happen...

The thing is, additional bailouts by Germany after this one are also unlikely to happen due to legal hurdles, so if the current one with maybe some mild financial engineering isn't enough (which us not a foregone conclusion, 440bn is more than Greece's entire outstanding debt), the next step will probably be a forced/controlled restructuring by decree. Pretty much all EU sov bonds are under domestic law, so in principle legally, nothing is stopping them from proclaiming something along the lines of 'anyone who has bought Greek bonds before today will only be entitled to repayment up to the purchase price they paid minus x%', thus screwing over all the hedge funds buying these for pennies hoping for a taxpayer bailout/windfall, but not affecting local banks that badly. Sure it would trigger CDS, but who cares as long as the banks who bought them at par originally don't lose too much capital.

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But your argument based on the strength of a new German currency is inaccurate. Just look at how Japan did with the strengthening of the Yen for just about ever. Where is the collapse in export? Look at both Japan and Germany in the 70s. What happened then?

You are repeating an argument that is pervasive but completely baseless.

I'll go along with that. Germany has always made and exported quality and premium price goods. It did very well prior to the Euro and would do post.

It's the banks and all their Euro-denominated loans that are the problem.

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They lose them if they bail the Eu zone out as well.

So won't be a consideration.

As to the rumour, it's going to be cobblers. Theres not a chance in hell they don't already have everything they need to go back to the DM ASAP, the same will be true for the french and franc, spanish and peso and so on. Basic contingency planning.

our bright spark Government is printing UK euros, Id wager.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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