Either the ECB Prints & Germany Walks or EU Sees Domino Debt Collapse Followed by Systemic Failure

[stockholmer]

http://www.zerohedge.com/contributed/either-ecb-prints-and-germany-walks%E2%80%A6-or-eu-sees-domino-debt-collapse-followed-systemic-f

By now, even the mainstream media is realizing what I’ve been saying for well over a year: that the EU in its current form is finished. I initially believed that we would see Greece kicked out of the EU. However, at this point it looks much more likely that it will be GERMANY who leaves. The reason is quite simple really. Germany WILL NOT tolerate debt monetization. They’ve seen how that situation plays out (Weimar) and will not allow it again, END OF STORY. If the ECB opts to print money, Germany is out.

So… the only other option for the EU to last is the leveraged EFSF. However, as we’ve seen, that option is a dead end as well: No new Euro zone money for debt crisis at G20. The Euro zone won verbal support but no new money at a G20 summit on Friday for its tortured efforts to overcome a sovereign debt crisis, while Italy was effectively placed under IMF supervision. Leaders of the world's major economies, meeting on the French Riviera, told Europe to sort out its own problems and deferred until next year any move to provide more crisis-fighting resources to the International Monetary Fund.


"There are hardly any countries here which said they were ready to go along with the EFSF (Euro zone rescue fund)," German Chancellor Angela Merkel told a news conference. http://www.reuters.com/article/2011/11/04/us-g-idUSTRE7A20E920111104 Remember, the EFSF failed to even stage a 3 billion Euro bond auction without buying some of the bonds itself. And with no one in the G20 wanting to fund the EFSF, the EFSF is in no way going to backstop Europe.

So there are now only two REAL outcomes:
1) The ECB prints (and Germany walks) resulting in the Euro losing at the minimum 30-40% of its value
2) Massive defaults and debt restructuring accompanied by systemic failure in Europe
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snip

[jwirr]

1. Just curious about history: What happened with the debt monetization

in the Weimar era? Inflation?

[banned from Kos]

2. Huge inflation then -- but the US was mired in deflation at the time

which became the Great Depression.

The Weimar had no solution.

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self correction - Weimar inflation was 1920-22 - well before the GD.

[stockholmer]

3. Millions, Billions, Trillions : Germany in the Era of Hyperinflation

http://www.spiegel.de/international/germany/0,1518,641758,00.html



http://usagold.com/germannightmare.html

The Nightmare German Inflation

One day everything was fine.
The next day hell was unleashed.


Playing With Money

[FarCenter]

4. I doubt Germany will walk out alone

Out of the 17 countries Germany would probably take a number with it: The Netherlands, Austria, Slovenia, Slovakia, Finland, Estonia, and Luxembourg.

France and Belgium may also go with Germany.

Cyprus, Greece, Malta, Italy, Spain, Portugal, and Ireland would be the ones out.