The ECB Is Considering A Parallel Greek Currency

As mentioned here many times for a long time, a “currency A” and “currency B” situation could be coming. This would likely be the best hedge in keeping Greece from going 110% Communist and allowing Russia to further creep into Europe, up from 100% when the Alexis Tsipras government took hold of the country. This will also keep the EU, at least for the short-term, from imploding.

 

As we first reported yesterday, one of the proposed measures to be implemented in Greece just before, or during its default and/or exit from the Eurozone, in addition to pervasive capital controls of course, is the implementation of a parallel “currency”, or as explained yesterday, a government paying its citizens with IOUs.

This is what we said less than 24 hours ago: Continue reading

Flashback: German Paper: Banks Getting Ready for Greece to Leave Euro

Banks are preparing staff to deal with riots after Greece switches back to the drachma.

Banks are quietly preparing for Greece to leave the EU, Süddeutsche Zeitung warned August 22. “An army of management consultants and lawyers” have spent weeks on “the infinite number of things to do,” it wrote (translation from Presseurop throughout). Continue reading

China’s Strategy in Afghanistan

Beijing is keen to increase its involvement in the country following the planned U.S. withdrawal in 2014. But security problems may interfere.

For a relatively small drilling operation, China National Petroleum Corporation’s (CNPC) project in Afghanistan’s Sar-e-Pul province has a large footprint. Several layers of fences and containers serving as blast walls surround the extraction site, which includes dormitories, an office complex and various security structures. Throughout the day, trucks ferry in equipment and more containers. On the outside, the faces are all Afghan, but CNPC’s logo and bright red Chinese slogans are impossible to miss. Continue reading