Germany repatriating gold faster than planned as confidence in euro plunges
Things are looking bad in Europe and Germany prepares for the worst: a probable sudden death of the euro currency.
Seven years of failed neoliberal policies have destroyed the Greek economy, yet in the midst of a big refugee crisis, terrorist attacks, right-wing extremes rising in almost every European country, and the monster of Deutsche Bank threatening with another financial disaster, two things remain unchanged: IMF and Schäuble's sadistic behavior against Greece, and, Greek persistence on keeping the country in a currency which may collapse any moment.
The German financial establishment, of course, will not play with fire like Schäuble does, nor will give a hand to help Greece in case of a European financial Armageddon.
We have repeatedly supported that Germany has already a plan B to return to national currency in case that things will take an uncontrolled route in eurozone. Further information justifies this estimation, as recently the country decided to accelerate the repatriation of its gold reserves. From RT :
Berlin is bringing home its gold reserves stored in New York, London and Paris faster than scheduled, Germany’s central bank said Thursday. The move is linked to surging euroskepticism, as new governments in France and Italy may ditch the single currency.
The German Bundesbank has already moved 583 tons of gold out of New York and Paris, planning to have a half of its gold back in Germany by the end of 2017, which is ahead of the 2020 plan. The rest will be split between the Federal Reserve Bank of New York and the Bank of England.
As French presidential candidate Marine Le Pen and Italy's 5-Star Movement are openly calling to pull out of the euro, some economists in Germany say the repatriated gold may be needed to back a new deutschmark should the eurozone collapse.
In Greece, as described, after rejecting the idea for more than two years, Syriza seems ready to think the unthinkable: to leave the eurozone. Even if government officials do not talk about it openly, eminent figures from the left-wing party publicly talk about the hypothesis. For the former European affairs minister of Syriza, Nikos Xydakis, the issue of the exit from euro, in any case, should no longer be considered "taboo". "There must be no taboo when we talk about the destiny of the nation. We have reached the point where the people are at the end of their endurance. I think we need an in-depth national political discussion. And this discussion, of course, needs to start in parliament," he said recently.
Yet, the Greek banking-media establishment that has tied its interests with the hard currency, doesn't want to hear about Grexit. Even under these circumstances, anyone who dares, even to speak about the possibility of national currency, demonized by the mainstream media propaganda.
Despite all the bad signs, Tsipras and his administration, still doesn't seem to have a serious plan to get the country out of the euro-Titanic.
As described previously, in reality, Berlin does not want to destroy eurozone because the euro-currency is the tool to impose the Greek model to all the debt colonies. But that doesn't mean it can prevent a disaster which might lead to an ugly ending of this currency. It is almost certain that the Germans and others have ready plans to return to the national currency.
Unfortunately, Tsipras administration has been proved unreliable to design a viable Grexit option. But now, Greece has the last chance to design such an option, in order to limit the terrifying, unpredictable consequences of an ugly collapse. There is a little time left for Grexit, which could be proved the lifeboat that would help Greece survive from the sinking of the Titanic.