If Greece does go Bust?

Mallotum_X

AndyGuil wrote: »

All money in Greece will become separate from the rest of Greece and become identifiable (overprint). Anyone wanting Euros will have to pay for them (because overprinted Euro will not be worth the same as a Euro) and Euros will not be legal tender. You can already ID Greek notes anyway from the code on them.

Links to the D.Mark
http://www.ndtv.com/article/world/deutsche-mark-set-for-comeback-instead-of-euro-in-germany-115046
http://www.express.co.uk/posts/view/255228/Mark-set-for-comeback-as-German-euro-crisis-deepens

I'm sure there are more if you look.

Express report that rumours are rife... so there are some internet rumours reported by blogs and papers like the express....

Why will Greek euros be marked as such? says who? and who would enforce that. Perhaps central bank might in Greece, but Greek citizens woul dhang onto cash in circulation as its real euros. As Generali mentioned above much more likely to have a two tiered cash supply in Greece. Similar to the way USD is used as a store of wealth in a number of otehr countries.

(I assume you work/study at the University of Surrey? Your links when clicked on take to a log in page for Surrey rather than the external source. You may want to change them?)

ChiefGrasscutter

It would not unlike when I worked in China a long time ago when there were two parallel currencies running with different notes.
FEC for Foreigners
RMB for locals
All the locals wanted FEC cash from you not RMB when you bought something, and when you did with FEC you always got RMB back in change, because they wanted to keep any FEC as it was much more valuable to a local.
So you ended up with lots of bits of RMB which you couldn't get rid of.
As a final kicker you were allowed to take out FEC from the country but not RMB.

Made for great fun (not) doing the expenses accounting for the bean counters back home.

AndyGuil

Mallotum_X wrote: »

Express report that rumours are rife... so there are some internet rumours reported by blogs and papers like the express....

Why will Greek euros be marked as such? says who? and who would enforce that. Perhaps central bank might in Greece, but Greek citizens woul dhang onto cash in circulation as its real euros. As Generali mentioned above much more likely to have a two tiered cash supply in Greece. Similar to the way USD is used as a store of wealth in a number of otehr countries.

(I assume you work/study at the University of Surrey? Your links when clicked on take to a log in page for Surrey rather than the external source. You may want to change them?)

They will be rumours for now, i'm not sure the Germans would do themselves any favours to announce they are printing the D.Mark.

As for the Greek Euros, they need to devalue (or allow its value to move relative to other currencies) and so a unique ID on the notes is necessary until the Drachma comes into force.

(Thanks for pointing out the links. I don't work there, i'm on a professional course there at the moment.)

bobthedambuilder

wellused wrote: »

It will happen because anyone who had say a thousand euro in a Greek bank would be mad not to move it abroad where it will be worth a thousand euro whatever happens to Greece, why would any sane person leave a thousand euro to be devalued by overprinting?

AndyGuil wrote: »

It will have been happening. They have to do it before the default. It will cause a run on the banks and only a proportion of the country will actually be able to achieve it.

The average man in the street would not be thinking of that. It's the privileged rich that will have already sorted themselves (as they've been doing for years, that's why Greece is in the trouble it's in).

sheffield_lad

It a bit like Turkey now I see something for some many thousand Turkish lira =£15 and offer them an English £10 note, they snap your hand off and hoard the notes as they will buy more lira in years to come.
I could do with some 'bad' Greek money, I love Greece but last few years have cost me ££ when buying meals Mythos etc bring back the Drachma or bad money lol

Zorz_2

AndyGuil wrote: »

You can already ID Greek notes anyway from the code on them.

There are no "greek euro banknotes", they are all identical. The serial number may track to the mint each note was printed, but they are all still treated the same. Only coins have 1 common side and 1 different in each country, but they are still legal tender everywhere in the eurozone.

ChiefGrasscutter

Zorz wrote: »

There are no "greek euro banknotes", they are all identical. The serial number may track to the mint each note was printed, but they are all still treated the same. Only coins have 1 common side and 1 different in each country, but they are still legal tender everywhere in the eurozone.

I believe that an Y in the serial No is a 'Greek note'
There are some places that even today will not take "scottish £ notes". The same may happen to "greek notes"

Thrugelmir

ChiefGrasscutter wrote: »

I believe that an Y in the serial No is a 'Greek note'
There are some places that even today will not take "scottish £ notes". The same may happen to "greek notes"

Correct. First character of the serial number denotes country of origin.

AndyGuil

ChiefGrasscutter wrote: »

I believe that an Y in the serial No is a 'Greek note'
There are some places that even today will not take "scottish £ notes". The same may happen to "greek notes"

Correct. You can find out the country designation for all notes, they are all different.

michaels

The bank run on Greek banks has already happened but the ECB operates a balancing mechanism which basically props up the Greek banks to cover the fact that all their deposits have gone abroad whilst they continue to hold their 'assets'. Of course this means the ECB takes a huge loss if the Greeks leave the EUR as the assets they hold covering the Greeks banks liabilities will become worth a lot less in drachma than they are currently nominally worth in EUR.