Friday, May 14, 2010

European Run on Physical Gold

Europeans have been caught by surprise over the announcement that not only is the EU going to bail out Greece, but they put just under $1 trillion on the table to redistribute to the other socialist countries in the region.

Warnings of the consequences to the euro have went unheeded, and now Europeans are not only pouring money into gold, they're also ordering gold bullion at a pace of demand that can't be met, and already some gold dealers have shut down orders in response to the demand, as they simply can't supply it.

The actions of the EU leaders over the last month just over Greece is part of the problem, as it was highly contested as to whether or not they were going to provide them with a bailout. That seemed to imply it was questionable as to whether or not that was going to happen. And now seemingly out of nowhere the announcement comes they're ready to bail out every country that needs help, or at least says they need help.

This is why so many rushed to gold, as they were caught off guard with now generous the EU was going to be with their money, and how that would drive down the value of the euro, and eventually bring it to an end.

Something stinks in how this has happened, and to abruptly turn around and not only bail out Greece, but offer the type of funds that were offers, seems to imply this may have all been orchestrated by politicians and central bankers over a period of time, as it doesn't really make much sense in how it burst upon the scene the way it did, as if there was this huge, inner battle going on, and suddenly everything is okay, and they'll add an additional $800 billion to the pot for good measure.

If there had really been that much resistance, it's doubtful this is how it would have played out.

It must be understood what is happening here. This really isn't a bail out of the nations, this is a bail out of the banks that bought the bonds of these nations.

What this means is these bankers were supporting these socialist, welfare, entitlement societies for many years, which were created by the politicians to garner favor in order to remain in office, and funded by the outrageous acquisition of debt that had no way of being repaid as it was played out. Now it has come home to roost and is being exposed as the fraud it is.

Next step? American and other westerners are going to be called on again to bail out banks, but this time banks which helped created socialist, entitlement cultures where people believe they deserve to be taken care of for nothing, and unions run by these socialists demanding extraordinary pensions and perks with very little in the way of productivity to pay for them. This is why socialism needs to be completely and totally abandoned, along with Keynesianism, which provides the theoretical and intellectual justification for this type of spending.

For Europeans and other western countries, they're again being asked, no forced, by their governments and central banks to bail out these losers, robbing our children and grandchildren of their inheritance so these others can live the easy live at our expense.

The Federal Reserve is already trying to cover its rear-end by saying they aren't going to provide funds so these socialists can live the good life, rather they're bailing out the banks, who I guess, are still too big to fail. What a nuthouse.

Europeans are starting to understand the threat, and since Germans have had this experience in the past, I'm sure they're leading the way in trying to buy physical gold in order to hold onto their wealth, which is slipping away with the failure of the euro.

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