“The Euro Crisis, Will There be any Money Left”

Euro Crisis, Federal Reserve, Gold Bullion, Hyper Inflation, Inflation, Markets, Precious Metals No Responses »

Jun 272012

History repeats itself, that is the saying. And with The Euro Crisis Today, Will There be any Money Left? Like so many generations before us, people start off with trading tangible assets, may it be copper or bronze or silver or gold, This is substituted with paper money and derivatives. It then gets abused by politicians, law makers and such. The outcome? Inflation, deflation and economic turmoil. Everyone is suffering from it, the rich, the middle class and the poor.

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Farage told KWN that ‘What you may see is a very desperate European Union begin to put in place capital controls and things like this … In a sense the proposal that is on the table next week, which is coming from Van Rompuy and Barroso, would be the first step toward that repression.” Farage also discussed the action in the gold market, but first, here is what Farage had to say about the crucial meeting in Europe next week: “I would be very, very surprised at that big summit next week, which incidentally I have a ticket to, not that I’ll be the most popular person in the building, but I just don’t think there is going to be an agreement of any great significance next week. I just don’t see it happening.

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Farage continues to say that:
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I hold to the theory that at some point in time, the markets are just going to overwhelm all of this, and then we will face the IMF global bailout situation. It would be better to admit we’ve made a terrible mistake and take losses on the money we’ve already foolishly thrown in and say, ‘Let’s start again boys.’

According to Farage there is something worst overhanging all of this in the banking system which is very much beyond our control. Farage continues…
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The total amount of money that is needed to shore up the Spanish banking system is more like 400 billion (euros), some people even think 500 billion (euros). The trouble is that if Europe was to do that they would be penniless. Because in theory they’ve got that money in their stability mechanism, although in practice all they’ve got are commitments from countries to put money in. The cash isn’t actually there.

So you throw trillions (of euros) at the thing, but six months later you find that the economy is still contracting, we’re still heading into a downward spiral, unemployment is getting worse, people are rioting on the streets and demanding a different solution.

At the end of the day there is no way that these countries are not going to go back to their own currencies that float on the exchanges. What all of that means is that all of this money that’s been chucked in through the European Union and through the IMF, most of it in the end is going to be lost.

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Farage also said that people thought communism would end sooner that it would because of its total failure. But through repression, they managed to keep the whole thing together.

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What you may see is a very desperate European Union begin to put in place capital controls and things like this.”
In a sense the proposal that is on the table next week, which is coming from Van Rompuy and Barroso, would be the first step toward that repression. If they are able to put together a debt union from a European Union, if they are able to have total control over individual member states’ budgets and all of the rest of it, then we are heading very, very rapidly down that road towards repression.
Frankly, that’s the only way they can win now. The only way they can win is to take away from the citizens the ability through the ballot box to do anything about this. They are hellbent on doing it, but they know the electorates, particularly in the North of Europe, are, with every passing day, beginning to realize their little scheme, and we know the markets have no confidence in them.

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Farage has been a long time gold investor. Here is what he thinks about gold.
“Given the mess that we’re in, and given this threat that we could possibly be facing a 1931-type movement, you have to be in this market. Got to be long gold, no question about it.”

After The Euro Crisis, Will There be any Money Left? , Greece could default, and Spain are getting there bailout, Italy will follow and just now Cyprus have asked for a 4 billion bailout package. so is this a domino effect, we are borrowing from our future generations.
We should go back to gold, start preserving your wealth by investing in gold and silver.

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Hyperinflation & $6000 Gold Price

Gold Price No Responses »

Jun 262012

Hyperinflation & $6000 Gold Price

In KWN today, the Hyperinflation & $6000 Gold Price , the Gold Price reaching $6000 came up during the Ben Davies’ interview. He was saying that the phenomena of the hyperinflation can hit you like a solid wall. Taken from Davies’ storytelling of a woman from Bolivia’s personal experience, she said that one day, her bank account had been drained to half of its amount. People with higher than the average wages may not notice the inflation rates, but lower income workers will feel it in their daily expenditures like buying food etc.
The gold market’s inclination today is up. Davies has this to say about gold;

“I think the mini-boom that we had in the nominal gold price, up to $1,900, we’ve been working off that mini-excess sideways. The disinflationary pressures from this concept of credit dying is worrying, and I think it weighs on all assets prices. But gold is doing what it should be doing.”

Ben Davies adds:
“If you look at it on a relative basis, gold has maintained its purchasing power. It’s done exactly what it should be doing. Short-term I am concerned that we could be going down to $1,400. Yes, that’s a real risk in this environment.

The Greek situation that’s sort of bubbling away, there’s no change in the status quo. In some ways, as awful as it sounds, it would have been lovely to have had an extreme event happen so that we get to the end of this process….

“Maybe it would have needed a Berlin airlift as they (Greece) were exiting out of the euro, to come and actually dump food on Greece to help people out, who would have been starving as they exited out of the eurozone and the currency. But at least we would have been nearer to the bottom.

Unfortunately, the way it’s going we’re just constantly protracting out this problem. So while that’s happening and the solutions are completely wrong, the risk is this constant weight of deleveraging, and that is weighing on all assets.

But people are ultimately exiting out of these fixed income assets, this sovereign debt, and they are going to be going into gold. I can see that the Asian demand is still very palpable. In fact it’s increased from last year quite dramatically. That is the buyer in the market. The question is, will they (China) be there over the summer months?”

Gold and silver is a solid asset management instrument to capitalize in this point in time. Davies presented that

“ If you were to run M4, M3 numbers, etc, and assert a value to gold on an appropriate metric relative to that, obviously gold would be at stupendous prices. I believe that gold has considerable room to go to the upside, four or five times (Gold price above $6,000). I think that’s not an inappropriate suggestion.”

Hyperinflation & $6000 Gold Price

is accurate in the world’s economic standing today. In Australia, the current lifestyle is more expensive compared to a few years ago. The footprint of inflation is worldwide. Prices hiking up uncontrollably, the value of money not sufficient to support the standard of living. We can counteract its effect by devoting our assets to gold and silver. Buy gold and silver now.

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