Breaking: Greece Threatens To Leave Eurozone, Reintroduce Own Currency

Tyler Durden's picture

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flacon's picture

...and the new currency is going to be backed by?..... Or put it this way: Who is going to buy the new Greek Currency bonds?

cossack55's picture

Tossup. Either The Bernank or Japan. LOL

TruthInSunshine's picture

Relax, everyone.

Eurogroup Chairman Juncker "totally denies" this.

Like, OMG, he totally denies it.

 

/sarc

Cheers to Iceland, Greece & Ireland - and I hope they wave the Big Bird to the Banking Cartel. They could lead by example.


An Irishman abroad tells it like it is

 

IBelieveInMagic's picture

PMs suddenly are off their highs -- did an international gold market close somewhere for the day?

DavidJ's picture

Why is this not good for PMs?  Shouldn't increased uncertainty about FIATs mean rise prices in PM prices?

tmosley's picture

Good for physical, bad for paper.

flacon's picture

Here's how I see it: PM prices are falling because of the "rally" in the USDX because of the falling of the Euro because of the threat from Greece to leave Euro and create it's own worthless paper currency....

 

What a mess...

TruthInSunshine's picture

I would really love to see the entire spool of lies and deception that is the Global Banking Cartel & its Fractional Reserve Fiatski Ponzi Scheme implode.

 

Bubbles the cat's picture
Bubbles the cat (not verified) TruthInSunshine May 6, 2011 12:46 PM

+1. Lookin forward to it.

jus_lite_reading's picture

DOES IT MATTER IF THEY LEAVE OR NOT? MAY 8TH IS THE REAL MAY DAY!

http://fiatsfire.blogspot.com/2011/05/fukushima-friday-redux-may-8th-may...

WHATS GOING ON?!?! COVER UPS AND LIES DAILY NOW!!

 

 

ambrosiac's picture

 

Oh come on.  Looking out my window Athens is still there, right smack in the middle of the Eurozone.

 

Most Greeks being Christian it is apt to paraphrase Augustine:

 

"Lord, make me virtuous... but not now"

 

Lord Welligton's picture

Nobody.

They'll just print money.

Whatta's picture

They'll just print money.

That is very fashionable these days. Backing for currencies is just sooooo lame.

The new Greek monetary slogan - "STFU and trust us!!!"

DocLogo's picture

que Al Quaeda in Greece.

SheepDog-One's picture

Anyone ask the same about Iceland? They told the banksters to shove dreadels up their poop chutes and never looked back....only ones hurt were the banksters dont believe the hype that unless you bow down to the cabal terrible things will happen to you. Theyve got bupkis.

gorillaonyourback's picture

the thought is they will repatriat the gold and back the new drachma with 10% gold.  this is good news for the fight against global banksters the imf and the ecb  WOW people finnally getting smart

bobby02's picture

Who bought Mexico's bonds in 1989?

 

No bid for Brazil40?

mogul rider's picture

It'll be backed by calamari

Don Birnam's picture

<<...and the new currency is going to be backed by? >>

Feta cheese ?

ZackAttack's picture

> Who is going to buy the new Greek Currency bonds?

Do you have a mirror handy?

And you don't even get to vote on it!

traderjoe's picture

@flacon - sovereign countries don't have to borrow. That's a privately-held central bank construct. See the Lincoln Greenback. Not without its problems but at least it was the people's money.

akak's picture

Fuck that statist tyrant traitor Lincoln and his fiat, inflationary Greenbacks.  They were in no damned way "the people's money" --- they were the GOVERNMENT'S money, never forget that.  Yeah, greenbacks were "the people's money" just like modern senators and congressmen are "the people's representatives". Don't make me laugh!

What we need is the separation of money and the state, NOT merely some tinkering around the edges of the statist, fiat monetary paradigm.  Stop the government from issuing ANY form of money --- it no more needs to be involved in dictating what individuals can and cannot exchange among themselves than it "needs" to dictate to us what we can and cannot voluntarily and freely chose to ingest.

The PolyCapitalist's picture

Hello accelerated bank run throughout the periphery, and Hello the only plausible response: capital controls.

http://www.polycapitalist.com/2011/05/breaking-greece-leaving-eurozone.html

nope-1004's picture

Eurozone is just a common currency agreement among too many different cultures.  The thing had failure written all over it from the beginning.

 

101 years and counting's picture

amazing this would come out on the 1 year anniversary of the flash crash.  AMAZING!

johngaltfla's picture

This pretty much makes all other news irrelevant barring a Bernank resignation.

If Greece does it to them, it means the Irish will also.

Reggie Middleton's picture

I don't know who here reads my stuff, but if Greece pulls out the European bankings system sill hit a ditch that would make Lehman look like a bond rally. May reference:

With Greek Debt Yielding 20%+ and Trading at Half Par Value, European Banks Are Trapped!

Monday, April 25th, 2011 by Reggie Middleton

Well, if Greece does default or restructure (and the market is telling us that Reggie is right in that this is a foregone conclusion), then…

 

falak pema's picture

The greeks and the germans are damned if they do and damned if they don't. So if they can't agree to a compromise : Haircuts + austerity strapping in Greece (killer blow to population), there is no satisfactory solution. Its a lose-lose by the looks of it.

Drachma's picture

Default and resurrection of the Drachma seems the most expedient way out of EuroHell.

Hephasteus's picture

Ya. But it opens up the fractional reserving genie and the fictional reserving genie and it forces banks to use accounting that's not Disney approved.

Still doesn't make it the wrong move. Greece needs to pop out the drachma.

tmosley's picture

I like your stuff, Reg.  Thanks for the explanation.  

hambone's picture

Senior Middleton,

enjoy your insights but far too honest - I prefer simple (non)solutions to complicated, interconnected problems.

Will continue to read your stuff and agree where we are today...but curious in regards to how you propose (in general) to protect wealth in this environment?  Given the world you paint of unrecognized losses and interwined liabilities...what has worth, value, utility in a deflationary world papered over w/ reflationary policies?

Take for example the REIT's (as you are well aware), these are trading at 2.5yr highs regardless the generally poor CRE and RE enviroment they exist within.  The unrecognized losses papered over w/ yields, low rates, and extend/pretend financing has put a floor under these entities.  Are they any different than the countries you describe in your presentation but only on a national instead of international level?  What is the linkage of the sovereign to the national CRE / RE market?

stormsailor's picture

reggie, i saw your article a couple of weeks back.  nice call as usual.

 

does this mean my srs i've been holding since oct 09 will stop shrinking? lol

 

hoping whatever new government we form after ours blows up will include you as the finance minister.

trav7777's picture

would prefer a guy who knew the meaning of "penultimate"

mick_richfield's picture

All right, that's the second-to-the-last time I'm ever reading one of your posts!

Zmelli's picture

I am also holding SRS! I will keep them until they go back to $200.00

The Ponz's picture

Whenever Greek default is back in the news, I feel the need for the wisdom of Nigel Farage.

http://www.youtube.com/watch?v=WkEY7_gDCTc

The Euro as Volkerkerker (had to look up that one).  They're all trapped inside an economic prison.  Aeeeyyyyyy!

Robbie4's picture

Everybody knows that 'der Spiegel' in Germany is absoltely not a respectful newspaper and mostly brings gossip about celebrities and most of what it writes is sensational articles?

Mountainview's picture

We will see....next Monday !!!

dugorama's picture

Wha???? no, Der Spiegel is somewhere between Time and The Economist.  Founded by a German POW who spent WWII in Florida and read Time, he wanted to do a German version.  They get as many scoops as Rolling Stone with Talibibi (sp?)...

Trillax's picture

err, No.  Der Spiegel is actually quasi reputable -- albiet 'Sturmgeschütz der Demokratie' in some fashion.  I've always found them to be somewhat balanced and reasonable;  however, there are times they try too 'hard' for a scoop and jump the shark a bit.  This might be one of those times.

depression's picture

Greece FTW Bitchezz !!!

glenlloyd's picture

Greece, always in for a good laugh.

cossack55's picture

Go Greece. Do an  Iceland on their banksta ass.

Cleanclog's picture

Greece has restructured (defaulted) many many many times before.  The country will go on. Most of the people there would rather default, have a currency that perhaps suffers inflation, and avoid the austerity measures they believe others have imposed on them.  They'll turn inward and hunker down in Greece. They won't be the last.