Frightened Germans

A few days ago we posted about the piggy bank in the Eurozone being emptied. Who is going to pay for Greece, Ireland, Portugal and maybe Spain? Of course the answer of who pays is always, "whoever has money". In this case its the Germans who have the money...but they are getting frightened themselves.

Credit default swaps (CDS) measuring risk on German, French and Dutch bonds have surged over recent days, rising significantly above the levels of non-EMU states in Scandinavia.

"Germany cannot keep paying for bail-outs without going bankrupt itself," said Professor Wilhelm Hankel, of Frankfurt University. "This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings."

See it here; http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8160999/EU-rescue-costs-start-to-threaten-Germany-itself.html

Boxes stuffed with gold and silver? Interesting. We have pointed out the hyper-inflation that collapsed Germany following WWI. Remember the pictures of German women using wheelbarrows full of cash waiting in line to buy a loaf of bread? We may remember the pictures...but THEY remember the actual event.

Also remember that this event could happen in the USA as well. Please understand that in order for a one-world-currency to come into place...all the other major currencies will first need to fold up. And one possible way this could all come to pass would be the turning on of the paper-money printing presses all around the Western world.

If you print too much...the confidence can erode. And if the confidence is gone....the paper has no value. And if the paper has no value...the world will cry out for a new currency that DOES have value.

Hat tip to Mike S.