Start Printing The Drachma!

Reuters reports that De La Rue, the British bank note printer, has drawn up contingency plans to print drachma banknotes should Greece exit the Euro.

Unsurprisingly, shares in De La Rue have risen by 11% over the last month on anticipation of this news.

Why use a UK priner, as opposed to a Greek printer?

Well, as Zero Hedge states, Greece ran out of ink when it tried to print tax returns!

In other news EU trade commissioner, Karel De Gucht, has said that the European Commission and the European Central Bank are working on an emergency scenario in case Greece has to leave the Eurozone.

As befitting an organisation that couldn't run a whorehouse, let alone manage a crisis, this statement was denied later in the day by @ECspokesOlivier (a subordinate of Gucht) who claimed that no plan is in the works.

Suffice to say, no one believes Olivier.

The End Game For Greece

Markets are falling and Greek debt yields are rising as a result of the failure of Greece to form a government. and the increasingly hostile attitude to Greece continuing to remain in the Euro from other Eurozone nations.

To add fuel to the fire Greek government spokesman, Pantelis Kapsis, has told the media that no decision has yet been made on repaying May 15 bond. This implied threat of default is Greece's attempt to raise the stakes in their game of poker with the Eurozone.

Finance ministers from the 17 Eurozone countries will meet this afternoon at 4pm GMT for talks that, one senior EU official told the Wall Street Journal, would be "very political".

It is clear that Greece will leave the Euro, it is not clear when this will happen. However, as and when Greece leaves, it will timed to "surprise" the markets and the population of Greece so that the necessary controls (eg prevention of mass capital flight) are in place.

The Return of The Drachma

Unsurprisingly, it seems that banks are preparing for the return of the Drachma.

Get those printing presses rolling!