Rumours have reached this side of the Atlantic that the German Bundesbank has been printing Deutschmarks in case the much vaunted Euro falls over. Now these rumours are not new, and there are claims and counter claims about how much truth there is in them. We have no means of knowing if the presses at Giesecke & Devrient in Munich, Frankfurt, or Leipzig are running red hot in a clandestine way. Short of watching for extra deliveries of special paper and suchlike.
With the Carbon markets globally in the tank, said rumours do not come as a shock to the system, especially with the continuing economic Greek Tragedy. To be honest, it makes perfect sense as a fallback option. The only question is; will such a move (if the rumours are true) be needed? The only real way to verify would be confirmation from an inside source. Not that such an eventuality is likely.
If Greece does default; then the Euro’s demise will be almost assured. There’s been too much Eurozone borrowing and lending of money that doesn’t really exist for it to be otherwise. This will be an economic implosion of brobdingnagian repercussions. Although the only real casualty (as usual) will be the poor bloody UK, French, and German taxpayers.
For the moment, the Greek Government have voted to implement a new austerity package, and the Euro will squeak by on a wing and a prayer, which seems to be the sole reason for it’s existence as a currency. Although some of the Greek populace don’t seem terribly happy with the idea.
Of course that’s only the first of the packages the Greeks have to vote for (or against). Whatever happens, in the words of the Duke of Wellington (after Waterloo), it’s going to be “A damn nice thing-the nearest run thing you ever saw…”