"A breakup is inevitable, just as it has been from the beginning. The key is to manage a breakup in the least destructive manner.
"Option 1: If Germany (and the northern states) left the eurozone, the Deutschmark (and respective currencies) would immediately be credible. The downside to Germany (and the northern states) is debts to German banks would not be paid back in Deutschmarks but rather deflated (but not worthless) Euros.
"Option 2: The second option is a piecemeal, destructive breakup. Should Greece and Spain leave first, those countries might experience a complete loss of faith in currency resulting in hyperinflation. The Northern states would be paid back in worthless notes, if they were paid back at all.
"Germany Suffers Regardless
"Note that Germany and the Northern creditor nations suffer regardless. ...
"There are no other options, and no other choices. ... "
Thursday, February 7, 2013
Germany to Exit Eurozone
Michael Shedlock called the top before the Great Recession, called Greece, Spain and France imploding well before they were on the downstream media's radar, and now he's calling Germany out . . . out of the Euro, that is. IF the Germans are smart, that is.