Did Merkel Just Usher In The Deutsche Mark?

Tyler Durden's picture

Rather worryingly, Bloomberg is reporting a Handelsblatt report (due tomorrow) that Mrs. Merkel is investigating ways to enable countries to leave the Euro.

Merkel's CDU Seeks to Make Euro Exits Possible (via Bloomberg)

RMBS patents ruled invalidGerman Chancellor Angela Merkel’s Christian Democratic Union party wants to make it possible for European Union members to exit the euro area, Handelsblatt reported in a preview of an article to be published tomorrow, citing unnamed participants in the discussion.


A commission within the party, that is crafting a framework to be presented at a party meeting, has proposed allowing a euro member who doesn’t want to or isn’t able to comply with the common currency rules to leave the euro region without losing membership in the EU, the newspaper said.



Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Motorhead's picture

Deutsche Mark, bitchez!

TruthInSunshine's picture

Last one out of the toilet paper fiat casino (and especially the Barnum & Bailey/Ringling Brothers/BernankAlchemy equity 'markets') is a rotten egg, bitchez!

hedgeless_horseman's picture



Did Merkel Just Usher In The Deutsche Mark?


Did Merkel Just Usher In The Drachma?


TruthInSunshine's picture

Did Merkel just break the glass of the derivatives market exposure (I see how you're all swimming naked - watch your backs, peoples) alarm?

Merkel moves makers to mandate mark-to-market?

Donkey Kong & Godzilla mate 1/2 mile off the coast of Fukushima.

Timmay's picture

If the result of that union is "God-Kong", I kind of like the sound of that....


Great Porn name.

tmosley's picture

More likely you will get Donkyzilla.

Great porn name in different circles.

sqz's picture

Did Merkel Just Usher In The Deutsche Mark?


Germany has an insane artificial competitive advantage to having the Euro as a currency. Obviously, being German, they prepared many moons ago to being able to leave the EU (let alone the EZ) too, if they needed. But Germany has such an advantage and control over their Euro baby, they can afford to be the last one left than the first one to leave, barring somehow being overruled on money printing or Eurobonds.

This article is at most about proposing a framework for any country to leave the EZ without leaving the EU. Something that should have been there from the very start. To me, this seems to be a hint of the first piece of common sense from Angela Merkel.

Cui Bono's picture

"different circles" eh.... Worst pun ever! CB

ghengis86's picture

Break the glass? Funny you should use that term:

Kristallnacht, 73 years ago, today (11-9-1938)

earleflorida's picture

the ptb's got maximum time to get out  - now it's time for reality to set,... the hopium 'field-of-dreams' are being burnt to ashes with a 'phoenix blow-torch', made in china -

quintago's picture

WTF is the Cusip for Black Swan?

Ragnar24's picture

History would suggest the stronger members of a currency union leave first.  See: history of Bretton Woods... France and De Gaulle simply refused to sell his country's gold to support the dollar peg and Johnson's "Great Society" (sound familiar?)

Lux Fiat's picture

Agree. Their external debts would be in Euros, which would decline precipitously if the stronger members leave.  Conversely, Italy and Greece just wind up getting shafted further if they leave the Euro, as their Euro-denominated debt would rise in value vs. the new domestc currency, pretty much dictacting a 100% vs. 50% default.

TruthInSunshine's picture

The Federal Reserve 'Bank,' European Central 'Bank,' 'Bank' of Japan and Peoples 'Bank' of China are about to make public the creation, after years of tedious, incredibly expensive research and development, the Fiatenstein 9000, able to print a quadrillion SDRs per second.

hedgeless_horseman's picture



You make a good argument using history.  However, exporters wear the knickers in Germany.

Lux Fiat's picture

German exporters are screwed either way.  Austerity will kill demand.  Periphery countries with independent weak currencies won't be able to afford as many German goods.  However, large german exporters who have euro-denominated debts will at least win on that front.

hedgeless_horseman's picture



Austerity will kill demand.

Austerity...in Greece...if they can print their own Drachmas?  That is the best joke I have heard in quite some time.

This is a faillacy, as we all should know that demand is not ever created by the actions of Central Bankers.

Lux Fiat's picture

So my thinking is not just fallacious, it's faillacious... ha!  Semantics aside, debasing a currency brings inflation.  Unless Greece is economically self-sufficient and not importing lots of things, inflation brings an austerity of its own.  Will they get back on their feet over time, albeit without the cushy retirements, etc?  Sure.  Perhaps your point of view it that a self-inflicted wound is preferrable to one of someone else's making, and heals faster?

Ethics Gradient's picture

Except if they prepare one country to leave, every Euro in the world will travel to Germany. There will be quite a rip-tide.

Because of that, the new DM will have about 30x as much currency floating about as Germany needs. Ironic, really. What is Germany trying to avoid? What does too much currency do?

TruthInSunshine's picture

If austerity kills demand, EG, you should get a taste of what massively accelerating and never-to-be-repaid sovereign and private sector debt does to it.

Wait, that's why they keep kicking the can, in an attempt to prevent people from seeing the ugliness and gore that does result from the latter approach, right (and accumulating even more unpayable debt in the process)?

Kick the can is all fun and games until a world war or other catastrophic global crisis breaks out.

ZerOhead's picture

Threat of the Deutsche Mark is more likely.

(Merkel is pulling a G.Pap)

kengland's picture

Why is this "rumor" taken as gospel but bullish rumors are looked at as heresy? Unreal how consistently inconsistent TD is

The Limerick King's picture



The Euro is coming unglued

And Germans are now getting screwed

The tide is now out

There is no more doubt

The whole God-damned Union is nude

Max Fischer's picture



You rule. Keep it up.  Always a good laugh.

Max Fischer, Civis Mundi

bernorange's picture

Hopefully the death of the Euro doesn't give birth to the "globero" (IMF SDR based "currency").


Gief Gold Plox's picture

One global currency? As I understand there's been one in place for millennia: GOLD bitchez.

devo's picture

Serious question: why is leaving the Euro a bad thing? Seems good.

BandGap's picture

Leaving the Euro, bad.  Leaving the EU, really bad.  These are your customers. The idea is to feed their addiction to buying your goods. Sound familiar?

TruthInSunshine's picture

Paul Krugman just tweeted that the solution is to print twice the number of EURs that currently exist, and use the latter half to pay back creditors of the existing half.

Wait...there's more...


He also said everyone could then have their money for nothing, and their chicks for free.


s2man's picture

EURUSD @ 0.75.  Not.  So then the U.S. prints more. Rinse and repeat.

50% inflation, anyone?

TruthInSunshine's picture

I forgot the /s

Though it was implicit.


It was implicit!

NotApplicable's picture

It is good, which is why it won't happen (in the long-term). This is just a big head-fake to scare everyone into compliance.

Village Smithy's picture

Because it means that Germany wants to save itself and jump ship leaving the rest of the Euro countries to founder.


Why did you junk me? I'm not saying that's a bad thing. There is no sense in the good being dragged down.

AbelCatalyst's picture

That would be the smart thing for Germany to do.  If the US had the opportunity to inflate away all their debt and not have to experience the consequenses you bet they'd do it.  What country would not?  Germany needs to find a way to do it and save face so other countries don't start dropping bombs on German cities....  

A total and complete mess, no real solutions, the ship is sinking, and no one knows what to do - that is the very definition of panic.  Things need to crash in order to begin to rebuild, and the longer we wait the harder the fall.  It's simple common sense.

Going Loco's picture




3 entities:-

  1. German banks
  2. German export customers in Europe
  3. German state

Can't save them all. Not possible. Might be able to save 2 out of 3. Time to choose. 

Merkel is an East German, friend of Putin. Will choose to save state.

But will she succeed?

ZerOhead's picture


Not for the bankers it ain't.

A commission within the party, that is crafting a framework to be presented at a party meeting, has proposed allowing a euro member who doesn’t want to or isn’t able to comply with the common currency rules to leave the euro region without losing membership in the EU, the newspaper said.


Expect the price of leaving voluntarily to be severe.

srsly-wtf's picture

I think the Euro is in effect keeping Germany's exports cheap.  The DM will appreciate strongly and hurt exports. 

Fips_OnTheSpot's picture

Yeah, like we germans reaaaally had a baaad, bad time exporting stuff before EUR? Gimme a break... you want that shiny new Porsche, no? =)

DCFusor's picture

Yup, and if it appreciates too much they can always print more!

SilverIsKing's picture

Before the EUR, the buyers had a currency that was perceived to have some value to Germans.  When the EUR cracks, will the Germans accept toilet paper for their goods and services?


I'll trade you a 24 roll count of Charmin Ultra for that shiny new Porsche.  Deal?