Germany is Already Printing Money… Deutsche Marks!!!

Wednesday, October 26, 2011
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
10/26/201

So… by now everyone realizes that the Euro is in major trouble and will no longer exist in its current form for much longer. However, the common view is that it is Greece and possibly other PIIGS countries who will be forced out if the Eurozone is broken up.

But few are talking about another possibility… GERMANY leaving the EU.

One who is talking about this is Dr Pippa Malmgren, a former economic advisor to George W. Bush and a former advisor to Deutsche Bank. According to Malmgren, Germany has already ordered the printing of Deutsche Marks in anticipation of a possible withdrawal from the EU.

Malmgren states, “the social contract between Germany’s citizens and its leaders preclude [debt monetization] given their history.” She adds that, “Germany has already begun to emphasize the need for a new EU Treaty that would compel fiscal harmonization, penalties for those that break the Maastricht Treaty rules and other undertakings that would harden Europe’s defenses against economic default risks going forward.”

If this is true, and Malmgren is correct, then the Euro will absolutely IMPLODE. Germany is widely held to be the strongest balance sheet in the EU (though even the Head of its Central Bank admits that the country’s real Debt to GDP is over 200%).

However, compared to the PIIGS, Germany is relatively rock solid from a fiscal point of view. It’s also the largest economy in the EU. So if the Germany pulls out (70% of Germans believe the Euro has no future) then Europe will experience a wave of defaults starting with Greece and spreading throughout the PIIGS.

The Rest…HERE

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