More Euro Woe – Gold and Silver Remain the Place to Go
(brief due to bad weather coming in).
Stocks to Fall Out of Bed. As noted last Thursday, bias shall remain tilted toward negative events for those who are long the broader stock markets, with some bouts of rebound.
European developments continue to weigh on world stock markets.
We are confronted by yet another glaring example of governments and banks being co dependent on you guess it – DEBT. And it’s not make believe debt. It is debt that will ultimately be paid back by societies.
If there isn’t enough to pay back this debt – AUSTERITY then results, as in the confiscation of benefits, pay, etc., from people who foot the bill to service debt.
It’s clear that cradle to grave pampering of people has failed, but clearer still that banks and governments are desperate to keep their financial system going by – yep – adding debt on top of debt.
Spain has made it official: Spain makes formal request for bank bailout http://is.gd/VMNmzE
Due to its exposure to Greece, Cyprus is now junk. Fitch Downgrades Cyprus Credit Grade to Junk – Fitch ratings agency says it has downgraded Cyprus‘ sovereign credit … http://ow.ly/1kQHT6
FYI CNBC is noting that some financial experts think the 10 year US can go to a 1% yield. That would be the biggest headfake ever.
Botton line: bailouts rely on DEBT on top of Debt. One day this is not going to end so well. That’s why hard assets make sense – including gold and silver. Metals and other hard assets are essential not as a price play, but as a hedge against the insanity of these fiat bailout fantasies that can only be effective for so long before more bailout funny money is needed. At one point I equated constant talk about the need to buy gold as fear mongering. No more. Having metals in the portfolio is necessary because what is going in Europe IS scary – reason to be very very concerned and to take action now.
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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