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15 April 2013

Will Germany Leave the Euro?

Everyone thought I was crazy for suggesting that Germany would be the first to leave the Euro, rather than Cyprus, Greece or one of the other Southern Eurogroup countries.

Political revolt against the euro construct has spread to Germany

Germany has benefited greatly from the Euro experiment so far by exporting Euros to other Eurozone countries. They have also benefited from increased capital inflow.  But now that the situation has turned dire for so many poorer member states, the advantage has turned into a liability.

Reinstatement of the Deutschmark and abandonment of the Euro would allow Germany to enjoy hegemony in Europe and challenge the British Pound as a secondary world reserve currency.