From Germany’s Spiegel:
Google translation (Original article in German down below):
ECB headquarters in Frankfurt am Main: Simulation games for the Grexit
– Debt dispute: ECB prepares for Greek euro exit (Spiegel, Feb 20, 2015):
Still negotiating Athens and the Euro-partners about new grants. Behind the scenes alternatives are already being played: The ECB is preparing by SPIEGEL information on the Greek exit from the euro before.
Frankfurt – The European Central Bank (ECB) is preparing for a Greek exit from the monetary union. To that effect, Employees by information obtained by SPIEGEL, an internal simulation games by how the rest of the euro zone could be held together.
Despite all the denials to urge the European monetary authorities the Greeks to finally introduce capital controls. According to the findings of the ECB, the Greeks have a day more than one billion euros abroad.
The International Monetary Fund ( IMF ) holds a Greek exit from the monetary union for the rest of the euro zone manageable. The Europeans had pulled up in recent years firewalls that may prevent skipping the crisis to other countries, according to Washington.
For a Greece leaving the euro zone would be related to the IMF, with significantly higher costs than if the country would be free to pursue further reform.
On Friday afternoon, the euro finance ministers discuss at a special meeting again on the financial future of Greece . The current credit and reform program expires next week, then threatens the cut from the capital market state bankruptcy. The euro zone rejects a purely technical from extension of the loan and also requires a commitment to the reforms.
Original article in German:
– Schuldenstreit: EZB bereitet sich auf griechischen Euro-Austritt vor (Spiegel, Feb 20, 2015):
Noch verhandeln Athen und die Euro-Partner über neue Finanzhilfen. Hinter den Kulissen werden bereits Alternativen durchgespielt: Die EZB bereitet sich nach SPIEGEL-Informationen auf den Ausstieg Griechenlands aus dem Euro vor.
Frankfurt am Main – Die Europäische Zentralbank (EZB) bereitet sich auf einen Ausstieg Griechenlands aus der Währungsunion vor. Zu diesem Zweck führen Mitarbeiter nach Informationen des SPIEGEL bereits interne Planspiele durch, wie der Rest der Eurozone zusammengehalten werden könnte.
Allen Dementis zum Trotz drängen die europäischen Währungshüter die Griechen dazu, endlich Kapitalverkehrskontrollen einzuführen. Nach Erkenntnissen der EZB überweisen die Griechen täglich mehr als eine Milliarde Euro ins Ausland.
Der Internationale Währungsfonds (IWF) hält einen Austritt der Griechen aus der Währungsunion für den Rest der Eurozone für verkraftbar. Die Europäer hätten in den vergangenen Jahren Brandmauern hochgezogen, die ein Überspringen der Krise auf andere Länder verhindern könnten, heißt es in Washington.
Für Griechenland wäre ein Austritt aus der Eurozone nach Einschätzung des IWF mit deutlich höheren Kosten verbunden, als wenn das Land den eingeschlagenen Reformweg weiter verfolgen würde.
Am Freitagnachmittag beraten die Eurofinanzminister auf einem Sondertreffen erneut über die finanzielle Zukunft Griechenlands. Das jetzige Kredit- und Reformprogramm läuft in der kommenden Woche aus, danach droht dem vom Kapitalmarkt abgeschnittenen Staat die Pleite. Die Eurozone lehnt eine lediglich technische Verlängerung der Darlehen ab und fordert auch ein Bekenntnis zu den Reformen.
The International Monetary Fund ( IMF ) holds a Greek exit from the monetary union for the rest of the euro zone manageable. The Europeans had pulled up in recent years firewalls that may prevent skipping the crisis to other countries, according to Washington.
Yeah, Washington being the bastion of truth………….
This will spread to other countries, the greedy gut bankers are not prepared, but I bet Putin (who now has Cyprus and Greece in his corner) can easily get Italy and Spain to leave as well.
The problem is far deeper than one country leaving the Euro. It is the final reserve protecting the dollar. If the Euro goes away, the last 30% of the economy, the part that still supports the dollar, goes away. The dollar will collapse if the Euro breaks apart. Greece and Cyprus will go with BRICS, and so will all countries who leave the Euro. They tell the corporate bankers to go to hell, dump all debt and start again. It will be hard for them, but much harder for the US dollar.
Right now, 30% of the world still uses the dollar in foreign exchanges…..the center of that support is in the Euro. There were 28 nations within the Euro Zone, now there are 27…..and with Cyprus offering Russia a base in their country……how long before it is 26? If each member of the Euro provided the US 1% of its remaining 30% of the world economy…………how long before the dollar is shown for what it is, an empty representation of what once was and is no more. The dollar has been printed nonstop by a irresponsible US government for far too long. US debt far exceeds its ability to pay. As the world reserve currency until Hugo Chavez introduced a technical alternative which 70% of the world economies now use…..the US had the world in economic choke hold. Now, it is sliding south, and it is doing all it can to hide the fact.
Like Fukushima, the fall of the power of the dollar is carefully hidden. All their talking heads carry on about the “strong dollar” regardless the opposite is the truth. With the withdrawal of Greece, they will talk more, pump the market up if they can, but at some point, like a balloon that breaks, it will hold no more air.
And, that is the true problem facing the Euro and even more, the US. Putin can quietly chip away at the Euro Zone until it is just a small affiliation of nations, no longer a powerful economic structure. It was built on lies, and lies, once exposed show far more weakness than if they had told the truth in the beginning.
CNBC reports a deal has been reached, a band aid at best……
http://www.cnbc.com/id/102441980