Friday, August 3, 2012

What Happens to Greece’s Gold when They Exit the Eurozone

With Germany’s leaders telling us that the exit from the Eurozone by Greece no longer holds terror for them, we understand that they are prepared for such an eventuality.


Greece’s lenders say they will not finance the country any further unless it meets its goals. But many experts say that the targets were never within reach and that pushing three increasingly weak Greek governments to comply has only profoundly damaged the economy.

 
Where’s Greece’s Gold?
The 111 tonnes of gold owned by Greece is in one of three central banks and perhaps spread throughout the three. These banks are the Bank of England, the Banque de France and the U.S. Federal Reserve.
If Greece Leaves Then What Next?
Greece will, we believe have to leave the European currency entirely, just as Argentina did in the nineties.

The “Commercial Drachma” would be used for normal trade activities of import and export of good and for tourism. The “Financial Drachma” would be for capital flows both in and out of the country
In addition we may well see a system of “debt Conversion” being instituted within Greece to incentivize investment into Greece for infrastructural development and other projects that would benefit the nation.


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