Euro just a Scheme? Germany Printing Marks
Saturday, 08 October 2011

Euros? Soon it may be as valuable as a McDonalds napkin!

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

This information is not new, Deutche Bank's boss confirmed this back in mid July.


"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 isnít 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.

 

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