German Marks re-printed?

(Click to enlarge)

The collapse of the Euro has been predicted by Ambrose Evans-Pritchard for some time, and now, speculation (pardon pun) is gathering pace as people begin to grasp that the massive Greek bailout is but a mere sticking plaster. It merely buys time.

Most pundits (Bob Chapman amongst them) believe that the Euro is toast and that Greece will never be able to repay its debts, even if its loans are restructured.

Germany would be hit harder than any other nation, should Greece default - or any of the PIGS, and for this reason, there is speculation that it has begun printing German Marks.

Related:

• German windfall profits from exiting the Euro

Cross-posted

Hegelian: France says economic union is solution to Greek debt crisis

It didn't take them long, did it?

The FT notes that France is pushing for an "economic government" for the eurozone in the wake of the Greek crisis. "It is too early to talk about this openly", said an official in Paris. "But let's face it, this Greek tragedy is probably the best way to get the debate moving forward. It is a wake-up call."

Ah, yes. Wait until Germany has decided on whether or not to bail out Greece, then let the media loose to hail economic union as the cure-all that we 'need', to avoid economic catastrophe!

Yeah, right. Problem, reaction, solution. Only they're not fooling many people any more.

"We are at a crossroads," Mr Balladur wrote in Le Figaro. "The time has come to move to a new stage."

"The issue of economic government is largely about Franco-German dialogue," said an official. "The president and chancellor talk about it each time they meet."

Get ready for the media onslaught and watch McDoom's reaction.

Cross-posted

Greece will be the EU's excuse for economic and political union

Information Clearing House has an interesting article on the demise of the EU as a consequence of the Greek debt crisis.

However, it's a mistake to underestimate the EU. Not because the EU is wise, but because it is ambitious.  

The aim of the EU has always been to effect an economic and political union. This crisis has just demonstrated that a monetary union is not possible without economic and political union. So, where the sane person might say that monetary union has been a failure and should be abandoned, the EU mind will use it as an excuse to push for political union.

I.e., it is the solution to the problem they created - a 'solution' they wanted all along.

I hope I'm wrong, but time will tell.

Cross-posted