Friday , 15 December 2017


The Best Way to Save the Euro is for Germany to Exit & Re-introduce Its Deutsche Mark – Here's Why

An op-ed has just been published in the New York Times suggesting that the best way to save the euro is for Germany to exit the European Union and re-introduce it former currency, the Deutsche mark. [Here is the rationale.] Words: 310

So says Sam Ro (www.businessinsider.com) in edited excerpts from his original article*.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Ro goes on to say, in part:

Ken Griffin, the CEO of Citadel, and University of Chicago economics professor Anil Kashyap…offer a simple plan to save the euro: Germany exit and reintroduces the mark.

In short, a German exit would:

  1. devalue the euro, which would suddenly make the exports of the remaining countries much cheaper and more attractive to the rest of the world which would, in turn,
  2. boost manufacturing and
  3. slash unemployment in the beleaguered [countries remaining in the European Union]…
  4. create a weak euro which would give the most debt-laden countries more financial flexibility, giving them “needed breathing room to restructure their economies, reform labor markets, collect more taxes and reassure investors.”

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Here’s the most powerful statement from the piece:

While most observers, including German policy makers, believe Germany will do what is necessary to save the euro, it is more important to save the European Union, which is older, larger and more significant than the euro zone. Continuing on the current trajectory will most likely entail more bailouts, more guarantees and ultimately dramatic sovereign defaults or enormous fiscal transfers. That would mean a continued loss of human capital and dignity for southern Europe and a nightmare of an open-ended commitment of trillions of euros on the part of Germany.

Griffin [and Kashyap] think that a German exit can be executed gradually with limited chaos.

The bottom line is that a German exit would be much better than any of the other alternatives.

*http://www.businessinsider.com/ken-griffin-german-exit-from-euro-2012-6#ixzz1z6Dyo447  (To access the above article please copy the URL and paste it into your browser.) (Read the whole op-ed at www.NYTimes.com.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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