by John Galt
February 7, 2012 18:55 ET
With the hour by hour, minute by minute, second by second, millisecond by millisecond, and of course, microsecond by microsecond breaking rumors, er, “news” about a potential Greek bailout since 2009, the markets and reality are beginning to come up with answers to the inevitable break up of the European Monetary Union (EMU) unless Germany is allowed to establish a Fourth Reich.
Thus tonight’s entry from Ambrose Evans-Pritchard in the U.K. Telegraph is a must read regarding some ideas from la Française:
(click on the title above to read the full story)
Check out this excerpt as the insanity in Europe accelerates:
“Even though our American and Chinese competitors have an interest in the survival of the single currency, the euro is condemned to an uncontrollable explosion sooner or late”. (A nice twist that one, inverting the false and widely believed conspiracy theory that the US is trying to destroy the euro.)
“National currencies should be recreated in each eurozone country”. There will be a short transition period of dual notes as old euros are stamped by country (‘U’ for France) until new francs etc are printed. (This is what happened when the Austro-Hungarian monetary union fell apart in 1919.)
The new exchange rates will be determined by a formula that takes into account the accumulated inflation differential and trade balances since the launch of EMU.
The devaluations/revaluations will be set against a new unit of account reflecting the average weighting of the old euro (not anchored on the new D-Mark).
Sucks to live there. Unless the nation one resides in is in control of the economic Anschluss.