Support for euro in doubt as Germans reject Latin bloc notes

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Tik Tak
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Support for euro in doubt as Germans reject Latin bloc notes

Post by Tik Tak » Sun Feb 21, 2010 10:49 pm

Honestly I think this is part of a going on campaign by the British press against the Euro :evil: . Besides the codes they indicate as being for the printers, are not. This doesn't make any sense.. even if a country like Greece would abandon the Euro this wouldn't imply a devaluation of "Y" notes.. well, here it goes for the curiousity of it:

http://www.telegraph.co.uk/finance/econ ... notes.html" onclick="window.open(this.href);return false;

Notes printed in Berlin have more currency for bank customers who fear a 'value crisis'

Ordinary Germans have begun to reject euro bank notes with serial numbers from Italy, Spain, Greece and Portugal, raising concerns that public support for monetary union may be waning in the eurozone's anchor country.
Germany's Handelsblatt newspaper says bankers have detected a curious pattern where customers are withdrawing cash directly from branches, screening the notes to determine the origin of issue. They ask for paper from the southern states to be exchanged for German notes.

Each country prints its own notes according to its economic weight, under strict guidelines from the European Central Bank in Frankfurt. The German notes have an "X"' at the start of the serial numbers, showing that they come from the Bundesdruckerei in Berlin.

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Italian notes have an "S" from the Instituto Poligrafico in Rome, and Spanish notes have a "V" from the Fabrica Nacional de Moneda in Madrid. The notes are entirely interchangeable and circulate freely through the eurozone and, indeed, beyond.
People clearly suspect that southern notes may lose value in a crisis, or if the eurozone breaks apart. This is what happened in the US in the Jackson era of the 1840s when dollar notes from different regions traded at different values.
"The scurrilous idea behind this is that if the eurozone should succumb to growing divergences, then it is best to cling to most stable countries," said the Handelsblatt.
"There are no grounds for panic. The Italian state is not Bear Stearns," it said.
Germans appear to be responding to a mix of concerns. Many own property in Spain or Portugal and have become aware of the Iberian housing slump.
A spate of news articles in the German press has begun to highlight the economic rift between the North and South of eurozone.
There is criticism of comments from Italian, Spanish, and French politicians that threaten the independence of the ECB, viewed as sacrosanct in Germany.
But the key concern appears to be price stability. Germany's wholesale inflation rate reached 8.1pc in May, the highest level in 26 years.
The cost of bread, milk and other staples has rocketed, adding to the sense that prices are spiralling out of control. Ordinary people are blaming the new currency - the "Teuro" - a pun on expensive - for their travails in the supermarket, even though the recent spike in farm goods and energy prices has nothing to do with monetary union.
Inflation touches a very sensitive nerve in Germany. Holger Schmeiding, from Bank of America, said the country had suffered two traumatic sets of inflation in living memory, first in Weimar in 1923 and then in 1948.
"People suffered a 90pc haircut on financial assets in the currency reform of 1948. The inflationary effects of two world wars were catastrophic," he said.
A group of leading German professors warned at the outset of EMU that the euro would tend to be weaker than old Deutsche Mark, and that it would fuel inflation over time. German citizens were never given a vote on the abolition of the D-Mark, which had become a symbol of Germany's rebirth after the war.
Many have kept a stash of D-Marks hidden in mattresses to this day. A recent IPOS poll showed that 59pc of Germany now had serious doubts about the euro.

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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by claudio vda » Sun Feb 21, 2010 11:21 pm

It is not the first time that the telegraph wrote those lies! :twisted:
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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by ART » Sun Feb 21, 2010 11:22 pm

Old lies:

Published: 12:01AM BST 13 Jun 2008
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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by Tik Tak » Mon Feb 22, 2010 9:28 am

ART wrote:Old lies:

Published: 12:01AM BST 13 Jun 2008
Upps :oops: sorry, someone just sent me the link yesterday, didn't notice the date..

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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by tabbs » Mon Feb 22, 2010 11:29 am

The article was written by the "famous" Ambrose Evans-Pritchard. What else would one expect from him and the Daily Telegraph when it comes to anything euro ...

The topic was, back then, covered by media in DE as well, even serious economy papers/magazines such as Handelsblatt and Wirtschaftswoche. But rather in the sense of "How odd some people are". :mrgreen: What is certainly true, however, is that in Germany the camp of those who do not want the euro got some "support" from Greece lately: In addition to those who have always been against the common currency, you now have those who initially thought or hoped that the monetary integration would lead to further economic integration including social and fiscal policy. Well, that has not happened, and - given the "state of the Union" - is unlikely to ever happen.

I am not sure how long the euro will actually be around. But one thing is for sure - like pretty much everybody in Germany, I will gladly accept euro cash from any member state. Judging from the current economic situation in Evans-Pritchard's country, however, I wonder how long it takes until hedge funds start attacking the UK and the £ instead of, or in addition to, Greece and Spain. Sure, they can then resort to devaluing the pound, but maybe the Telegraph's schadenfreude will be a little dampened.

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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by Licht & Feuer » Mon Feb 22, 2010 5:13 pm

What I do not understand is: Even if a state should leave the monetary union - why should the NCB-code of the notes be an issue then?
I mean, when this should happen, this country would replace ALL Euro-notes and coins with its new currency while the rest of the union would still use ALL notes, there would just be no new issues from this former member-state.

There's even an example in history: When Austria and Liechtenstein left the Thaler-monetary union with the german states after the war of 1866, they withdraw all Thalers from circulation there and replaced them with the new Florin-coinage. But in Germany (which kept the Thaler), the pieces with the portraits of the austrian emperor and the prince of Liechtenstein were still legal tender and remained in circulation for years (until the Thaler became replaced by a new type of coin).
I'm pretty sure it would be the same with the NCB-notes of any Eurozone-member, that should leave the union for which reason ever.

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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by an-148 » Mon Feb 22, 2010 6:38 pm

of course !!!

at least now, since pooling of banknotes is usual, everybody has understood (besides british journalists) that no country is owner of the money printed there; maybe the next series will be printed without any reference to a country, who knows?
anyway, in one or the other case, the bills are emitted and owned by ECB, whatever country is mentionned on the serial number.
:roll:

looking back in the days of the introduction of the €, I'm quite sure that the "fathers" of the € knew that it was psychologically important for citizens to keep some visual national reference on their bills and even more on their coins for better acceptance; nowadays, it would not be necessary anymore.
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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by ART » Mon Feb 22, 2010 9:55 pm

tabbs wrote:What is certainly true, however, is that in Germany the camp of those who do not want the euro got some "support" from Greece lately: In addition to those who have always been against the common currency, you now have those who initially thought or hoped that the monetary integration would lead to further economic integration including social and fiscal policy. Well, that has not happened, and - given the "state of the Union" - is unlikely to ever happen.
However I believe that what is happening actually will put definitively in luminosity that the "economic system" goes changed and improved. Also for that it has been planned the EMU.
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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by melitikus » Mon Feb 22, 2010 10:50 pm

lies about the EU are very common in British newspapers - any innovation from the EU is always twisted and made looking bad
no wonder why now the British are so skeptical about the EU

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Re: Support for euro in doubt as Germans reject Latin bloc notes

Post by tabbs » Mon Feb 22, 2010 11:06 pm

ART wrote:However I believe that what is happening actually will put definitively in luminosity that the "economic system" goes changed and improved. Also for that it has been planned the EMU.
I sure hope so. Don't think that any national government in the euro area is actually interested in doing away with the common currency. But the big question, what price are they, are we, willing to pay for that? And of course I don't have an answer to that either ...

One more thing about Evans-Pritchard: In his text (13 Jun 2008, see first post) he refers to a Handelsblatt article. Right, that newspaper wrote (11 Jun 2008) about this fringe phenomenon ... and calls it exotic and bizarre. :) http://www.handelsblatt.com/finanzen/bu ... em;1441679" onclick="window.open(this.href);return false; And of course we know that Evans-Pritchard is wrong when he claims that "Each country prints its own notes according to its economic weight".

Interestingly, though, in February 2009 Prof. Max Otte warmed that story up again, so to say. http://www.finanzen.net/nachricht/aktie ... ibt-444105" onclick="window.open(this.href);return false; The "crash guru" wrote that the country codes were built into the serial numbers in case the currency union collapses. Don't think he is dumb, so even if he does not know how about how the notes are issued or about the pooling system, he will know that cash represents only a fraction of the total money supply.

In March 2009 the Wirtschaftswoche wrote about those strange people and theories: http://www.wiwo.de/finanzen/angst-vor-d ... ro-390181/" onclick="window.open(this.href);return false; with a somewhat ironic undertone. (These three articles are in German. By the way, the notes to be avoided according to Otte are those with M/Portugal, P/Netherlands, S/Italy, T/Ireland, V/Spain, and Y/Greece serial numbers.) Problem is, there are indeed people out there who believe in conspiracy theories, in "good" and "bad" country codes and that Elvis is still alive ...

Christian

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