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Riots if euro fails, Britain warns

29 Nov

I believe that the financial system should die before it can be reborn. Of course, millions will die.

From: http://www.ottawacitizen.com/business/Prepare+riots+euro+fails+Britain+warns/5770453/story.html

Emphasis in red are mine.

” Embassies told to make contingency plans for expatriates
November 26, 2011

British embassies in the eurozone have been told to draw up plans to help British expatriates through the collapse of the single currency, amid renewed fears for Italy and Spain.

As the Italian government struggled to borrow and Spain considered seeking an international bailout, British ministers privately warned that the breakup of the euro, once almost unthinkable, is now increasingly plausible.

Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the crisis.

The Treasury confirmed this month that contingency planning for a collapse was under way, and a senior minister has now disclosed the extent of the government’s concern, saying Britain is planning on the basis that a euro collapse is just a matter of time.

“It’s in our interests that they keep playing for time because that gives us more time to prepare,” the minister told The Daily Telegraph.

Foreign and Commonwealth Office instructions to embassies and consulates request contingency planning for a currency collapse that could leave Britons unable to access bank accounts or even withdraw cash, and facing scenarios such as rioting and social unrest.

Greece has seen outbreaks of civil disorder as it struggles with huge debts.

British officials say similar scenes cannot be ruled out in other nations if the euro collapses.

The EU treaties that created the euro contain no provision for members to leave. If eurozone governments defaulted on debts, European banks that held their bonds face collapse. Some analysts say such an event would risk the collapse of the entire financial system, leaving banks unable to return money to retail depositors and destroying companies dependent on bank credit. ”

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