The collapse of the Euro and the Euro Zone..

It was a nice idea that 10 brothers could all share the same 'market place' and currency - but, that also required them to share the same Credit Card. (Sure, there were 'spending' rules - but those rules were openly ignored.)
As with any bunch of brothers, some are 'hard working' and love to save; Some are lazy 'dole addicts' who actually despise those who work hard and pay taxes! The lazy brothers have been secretly cheating and sponging off the common 'Credit Card' since it was created!
That 'Credit Card' is now so strained that the whole Euro banking system is about to collapse! Initially, there were Five productive brothers - Now, there are only Two! Those two can't possibly sustain the 'credit card' debt any longer. The German taxpayers can already smell the total loss of their own bank savings.

Germany has two choices..
1. Allow the worst offenders to default and leave the euro zone.
2. Germany leaves the Euro and returns to the Deutschmark.
Both options will severely impact on German taxpayer savings. (see more below)

Quoting George Soros - Guardian.co.uk, April 2013.
"There is now a real danger that the euro crisis may end up destroying the European Union."

"The (Euro) crisis is far from resolved. It has already caused tremendous damage both financially and politically and taken an extensive human toll.
The austerity policy is prolonging the crisis and perpetuating the subordination of debtor countries. This has created political tensions as demonstrated by the political stalemate in Italy. Italy now has a majority opposed to the euro and the trend is likely to grow.
There is now a real danger that the euro crisis may end up destroying the European Union. A disorderly disintegration would leave Europe worse off than it was when the bold experiment of creating a European Union was begun. That would be a tragedy of historic proportions.

Germany did not seek to occupy a dominant position and has been reluctant to accept the responsibilities and liabilities that go with it. That is one of the reasons why the current situation has arisen. But willingly or not, Germany is in the driver's seat

The financial dimension can be divided into at least three components: a sovereign debt crisis and a banking crisis, as well as divergences in competitiveness.  The various aspects are interconnected, making the problems so complicated that they boggle the mind. In my view the euro crisis cannot be properly understood without realizing the crucial role that mistakes and misconceptions have played in creating it. The crisis is almost entirely self-inflicted. It has the quality of a nightmare.
End Quote..

Germany has two choices..
1. Allow the worst offenders to default and leave the euro zone.
2. Germany leaves the Euro and returns to the Deutschmark.
Both options will severely impact on German taxpayer savings. That's why the Euro Central Bank has been furiously printing money. It was hoping that so much free money would allow the 'dole cheats' to fund new businesses, employ everyone and start producing and exporting.. In their eyes, there was a slight chance this plan would work and all the debts would soon be paid back.
The 'free money' has reached insane levels and has not helped at all. (As most 10 year olds would have guessed.)

p1. If any significant Euro Country defaults and leaves the Euro zone, the other seriously impaired countries will see no need to prolong their own austerity pain and will also default.
Iceland defaulted and is now prospering! - Contrary to all the warnings, the "sky did not fall". Icelands example is widely applauded thruout Europe.
p2. If Germany leaves the Euro and returns to the Deutschmark..
The Deutschmark will rise spectacularly and the Euro will fall to maybe half its value.
A rising Deutschmark will limit German exports (make them more expensive). This will give the remaining Euro countries an export price advantage. The falling value of the Euro will also boost Euro exports to the rest of the world.
The bigger problem for Germany will be that the huge amounts of money that the Euro countries owe to German banks will be paid in half-value Euros. Germany could get 30c in the dollar from its debtors. However, if as in p1, other countries default, Germany will get almost nothing from its debtors!
The obvious choice is p2. Germany leaves the Euro before the first default (which could happen any day now!)
Either way, the German public is going to loose huge amounts of its savings to a banking crisis brought on by criminal behavior in the banking system. This also happened to the German public in the 1930s - and we know what that led to.

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Quote from Lars Seier Christensen, the co-chief executive of Saxo Bank..

"..the euro crisis had turned into a fatal disaster with huge consequences for the members involved."
"I think it's only a matter of time before the euro passes into history as another failed experiment in the dark art of monetary machinations."It is the renewed reality for traders and investors," he advised at a Bloomberg conference last week in London. "The euro is a doomed currency and a lot of people knew that already when it was introduced. Rationality needs to return to the Eurozone. If it doesn't, recession will turn into depression."
[Following the] "Cyprus confiscations [of private savings] - Bank runs could start at any moment."
... "the biggest risk is the chronic pain that the euro architecture imposes on the weaker economies in the Eurozone. These citizens won't tolerate [this pain] forever. Something will eventually give." End Quote.

wip