July 18, 2012 By gpc1981
http://albertpeia.com/germanywillleaveeuro.htm
‘Since
November 2011, I’ve been saying that
Wolfgang Schauble
admits euro bail-out fund won’t halt crisis
Europe’s
“big bazooka” bail-out fund is not ready and won’t stem the debt crisis that on
Tuesday pounded Italy and the European Central Bank (ECB), admitted Wolfgang Schauble, Germany’s finance minister.
This
was a pretty strong admission from the finance minister of the country that
Seeing in Crisis the Last Best
Chance to Unite
MR.
SCHÄUBLE said the German government would propose treaty changes at the summit
of European leaders in
“What we’re now doing with the
fiscal union, what I’m describing here, is a short-term step for the currency,”
Mr. Schäuble said. “In a larger context, naturally we
need a political union.”
Critics
say the spending cuts German leaders have demanded from other countries are
hurting growth across the Continent, in the process making debts only harder to
repay. And his proposals to give the European Commission far-reaching powers to
enforce budgetary discipline have been likened by skeptics in
“There
is a limited transition period where we have to manage the nervousness on the
markets,” Mr. Schäuble said. “If it is clear that by
the end of 2012 or the middle of 2013 that we have all the ingredients for new,
strengthened and deepened political
structures together, I think that will work.”
He
sees the turmoil as not an obstacle but a necessity. “We can only achieve a political union if we have a
crisis,” Mr. Schäuble said.
Note
that Schauble repeatedly emphasized the goal of a “political
union,” NOT a “fiscal union” or “monetary union.” Indeed, his one reference to a “fiscal union” is in
the “short-term,” while stressing that in a “larger context” the EU needs a “political union.”
The
message here was very, very clear:
How
do I know?
Moreover,
that €328 billion has already been spent via various EU props. Indeed, when we
account for all the backdoor schemes
In
Euro terms,
This
will guarantee Germany losing its AAA status, which in turn makes its funding
costs much higher (see what happened to France in the last year: that country
is now facing bank runs and its own solvency Crisis which you’ll be hearing
about in the coming weeks).
Which
brings us to today, where Germans area ALREADY USING DEUTSCHEMARKS AGAIN.
Who Needs the Euro When You Can Pay
With Deutsche Marks?
Shopping
for pain reliever here on a recent sunny morning, Ulrike Berger giddily counted
her coins and approached the pharmacy counter. She had just enough to make the
purchase: 31.09 deutsche marks.
“They just feel nice to hold again,”
the 55-year-old preschool teacher marveled, cupping the grubby coins fished
from the crevices of her castaway living room sofa. “And they’re still worth something.”
Behind
the counter of Rolf-Dieter Schaetzle’s pharmacy in
this southern German village lay a tray full of deutsche mark notes and coins—a
month’s worth of sales.
Germans
have yet to give up on the euro. But as
As
defunct currencies go, “die gute alte
D-mark,” or “the good old D-mark,” as it is still affectionately called, is far from dead. Germans officially
traded in the currency for euro bills and coins on Jan. 1, 2002, and the mark
immediately ceased to be legal tender. But
13.2 billion marks—worth €6.75 billion ($8.3 billion)—remain tucked in
mattresses, old prayer books, coat pockets or otherwise in circulation,
according to the Bundesbank, more lucre than the euro
bloc’s 16 other ex-currencies combined.
http://online.wsj.com/article/SB10001424052702304373804577520930784840596.html?mod=rss_markets_main
If the
above article doesn’t spell it out for you, nothing will. Germans NEVER really
trusted the Euro. They went along with it because of the benefit to their
export driven economy. But now that the PIIGS and others are begging
It’s
now just a matter of time before
With
that in mind, I’ve begun positioning subscribers of my Private Wealth Advisory for the
next leg down in the markets. We’ve already locked in over 30 winning trades
this year by finding “out of the way” investments few investors know about and
timing our positions to benefit from the various developments in
