Euro on the brink of DISASTER: Germany’s debt plans could send currency into MELTDOWN

Remember what Merkel said in 2012. Destroying to rebuild is the case here.

 

GERMANY could spark the eurozone’s collapse with controversial changes to government debt and bailout rules, a leading economist has warned.

Professor Peter Bofinger, a special advisor to the Berlin-based government, said Italy and Spain could potentially be forced out of the euro and back to their own currencies under new plans.

Under the proposed scheme, investors who hold Eurozone government-issued debts through bonds would have to accept write-offs on the value of their investment before the group steps in to offer bailout cash. Continue reading

German ‘bail-in’ plan for government bonds risks blowing up the euro

Quick reminder: “Bail-out” means the government bails the banks out, whereas “bail-in” means the citizens pick up the tab. Germany’s Fourth Reich is once again forcing its will upon the EU.

 

‘If I were a politician in Italy, I’d want my own currency as fast as possible: that is the only way to avoid going bankrupt,’ said German ‘Wise Man’

A new German plan to impose “haircuts” on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned.

“It is the fastest way to break up the eurozone,” said Professor Peter Bofinger, one of the five “Wise Men” on the German Council of Economic Advisers.

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“Cash Is Coined Freedom”: War on Cash Becomes Official in Germany, Reaches G-7, Draws Withering Fire

It came from a voice that has, by law, the ear of the German government. Peter Bofinger is a member of the German Council of Economic Experts – the “Five Sages on the Economy” – which in its official function advises the government and parliament on economic policy issues. These folks are taken seriously.

So Bofinger told the German magazine Der Spiegel in an interview (full interview behind paywall) that cash should be done away with. Continue reading