[happyman]

And why should Germany jump in the shit pot and smell like the rest of them?.... Germany is a very productive country and will be the first one to climb out of the hole.
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Regime Change: Vote Germany Out of Euro.

Published: Monday, 21 Nov 2011 | 3:12 AM ET By: Patrick Allen

The message from Germany is clear: there will be no bailout of the euro zone via monetizing debt through bond purchases by the European Central Bank. This stance, according to Chris Tinker, an equity strategist at Libra Investment Services in London, means higher borrowing costs acting as a mechanism for pushing through structural reforms.


The end game as far as Tinker is concerned is nothing short of re-molding Europe in Germany’s “Teutonic image.”

“The first evidence of this was when Greece was given a binary in or out of the EU option by France and Germany some weeks back. Any pretence that the EU and the Euro [EUR=X 1.3511 0.0018 (+0.13%) ] are operated on collegiate lines evaporated as Germany and France then demonstrated an unnervingly autocratic approach to their southern neighbors,” Tinker said in an interview with CNBC on Monday.

The major concern for Tinker is that this approach is being reinforced by an ECB “regime change,” where higher borrowing costs are used to enforce a technocratic solution to the crisis.

The current crisis is not, according to Tinker, a debt crisis but in fact a currency crisis where countries in Southern Europe face a competitiveness problem that is driving capital from their shores.



“There is no longer any reason for holding non-German exposure in the minds of many fixed income investors and, increasingly, equity markets are following suit as prospects for economic demand dim further,” said Tinker, who believes devaluing the euro could be the answer to the problem.

“If we are prepared to think the unthinkable then it is Germany, not the rest of Europe that is actually the problem here, the solution is that the euro is the wrong price because it has Germany as a part of it,” Tinker added.

His answer is not to kick Greece or Italy out of the euro as some are suggesting but to make Germany leave the single currency and re-introduce the Deutsche Mark.

“It is not as if Germany needs the security of the ECB to support its domestic debt market or to provide liquidity to its banking system. Then allow the euro zone to devalue against all global currencies,” Tinker said.


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This might be bad news for Germany’s exporters but would have a major benefit to the rest of the euro zone, which would be able to use devaluation to boost growth and lower debt levels.

“Interest rates will remain relatively high compared to 2010 levels, but given that yields already exceed those that predate the introduction of the euro for most participants, that is hardly the biggest downside,” said Tinker, who believes democracy could again dominate European decision making.

“The problems to such a proposal are not trivial but with the ECB/EU technocrats already driving reform in the Italian, Greek, Irish and Spanish economies and with the IMF having also being lassoed into the process, the rest of Europe might just want to review the unthinkable and 'vote Germany out' of the euro,” he concluded.

http://www.cnbc.com/id/45382898?__so...%7C&par=google

[Abarricoss]

Yes the grasshoppers should get together and vote the pesky ant out...

[ardsdelinq]

I think this is one of the top 10 dumbest pieces written this year.

If it wasn't for Germany supporting all the PIIGS, Euro would have tumbled long before now.

Is Tinker a former Goldmanite?

[Forexampleee]

I think this is one of the top 10 dumbest pieces written this year.

If it wasn't for Germany supporting all the PIIGS, Euro would have tumbled long before now.

Is Tinker a former Goldmanite?

Well Tinker-Bell is arguing for a plummeting Euro, and with or without Germany it is going to happen, there is not a snowballs chance in hell that West Germany's 50 million population will be able to support 300 Million Euro-zoners, they can only delay it. But IMO a good point was raised, it is a distinct possibility that Germany will be forced out of the Euro, but I think it is more likely that Germany decides to leave on their own. It could actually be a very good thing for Germany. Deutsch Marks could very rapidly double in value vs Euro, and it would be very cheap for Germany to pay off their Euro-denominated debt...

[Assungusa]

If Germany is without Euros, All the others PIIGS would just go back to their own currencies immediately.

[icerrelmCam]

We need another Herr Hitler to save not only Germany but also the world........we know where the problem is at and what the world must do to end the problem.

[ricochettty]

We need another Herr Hitler to save not only Germany but also the world........we know where the problem is at and what the world must do to end the problem.

As if 2000 years of pestilence from those who knew better, weren't enough.

Who can blame Castro for offering up Cuba as a meatshield?

[Anakattawl]

You ain't gonna believe this... but the Euro will be bailed out by the US. Just watch how all the mess is put onto the Amerikan taxpayer. And then ALL the valuable assets will be taken away as collateral for the non-payment of debt.

[Qynvtlur]

You ain't gonna believe this... but the Euro will be bailed out by the US.

[soyclocky]

You ain't gonna believe this... but the Euro will be bailed out by the US. Just watch how all the mess is put onto the Amerikan taxpayer. And then ALL the valuable assets will be taken away as collateral for the non-payment of debt.

Isn't this already occurring with the latest IMF funding that was announced today? Wouldn't the swap lines the FED just extended to the ECB also qualify?

[mr.nemo]

Well Tinker-Bell is arguing for a plummeting Euro, and with or without Germany it is going to happen, there is not a snowballs chance in hell that West Germany's 50 million population will be able to support 300 Million Euro-zoners, they can only delay it. But IMO a good point was raised, it is a distinct possibility that Germany will be forced out of the Euro, but I think it is more likely that Germany decides to leave on their own. It could actually be a very good thing for Germany. Deutsch Marks could very rapidly double in value vs Euro, and it would be very cheap for Germany to pay off their Euro-denominated debt...

Germany won't be forced out of the Euro. Pipe dreams imho. If Germany isn't present to back the ECB's (illegal) purchases of Greek debt (not mentioning the rest of the PIIGS) the 1 year bond for Greece would probably be running 400%+ yield. It is a failed situation for the rest of the Eurozone without Germany.

Germany pulling out of the Euro will be a coordinated event to maximize the profit/destruction for the bankers.