#10 puzzle piece: The NY TIMES runs an article on the hidden world of banking overlords in command and control of the derivatives nuclear bomb : Post-Meltdown, Banks Still Rule Derivatives Trade – NYTimes.com
Here is an intense analysis by Pritchard in the Telegraph deconstructing the euro project going forward in regards to Germany and German political interests and sacrifices regarding. He calls the euro a *doomsday machine*.
Anon posted below ;
A theme that has emerged recently is how to avoid post break-up chaos. As Barry Eichengreen pointed out a long time ago, if one country left the Euro and devalued, it would probably face a Bank run and capital flight. So recent proposals have focussed on how to avoid that, and the best I have seen is that the German-group countries should simply leave the Euro to the PIIGS, so that it is not the PIIGS that have to deal with chaos. The PIIGS would be left with the Euro and its institutions, including the ECB, the Euro would rapidly devalue, and the PIIGS could make a start at rebuilding their economies.
And for the German-group countries, the reintroduction of the DMark would not carry the same risks as for a country leaving the current Euro. A new DMark would be much more likely to appreciate than to devalue, so there would be a liquid market for it and for its debt immediately.
That’s the key point, by the way. Leaving the Euro and trying to re-launch some kind of Euro-Med is difficult, but leaving the Euro and relaunching the DMark is a lot easier.
And if you look at this from a geopolitical viewpoint, wouldn’t Germany prefer to expand its economy over countries like the Netherlands and maybe Denmark and Finland than to keep struggling with the problems of the PIIGS? As many people have pointed out, Germany would face a problem with export pricing if it had an appreciating DMark, but that may not be a very strong objection, since an appreciating DMark would at the same time be the best possible rationalisation for holding down real wages in Germany and so regaining its export advantages.
As a friend of mine who was a shrink once told me “Don’t worry what they say; just listen to what they talk *about*”. And this month they are talking about the Euro breakup.