The US recapitalised its banks by printing dollars & weakening their dollar through inflation. The EU refuses to get involved in money printing, choosing instead to recapitialise with existing liquidity ( by garnishing savers deposits). Surely this conservative approach can only improve the strength, stability & value of the Euro... not cause a flight away from it?
Well yeh - if savers decide to leave their savings in the bank. To my mind though one would need sh.t4brains in order to do that :lol:
Possibly... but the way I see it: Steal depositors money --> loss of faith in banks as a place to store money --> run on banks --> money printing required to maintain liquidity in banks --> inflation... So catch 22.
People will say manipulation. But it could just as easily be that it isn't as popular as an investment as we believe it to be. At least not for the masses, and it takes them to really drive the price.
Guys - they don't have the cash to buy gold - its all in the frozen bank accounts! And they cant take out enough to both pay their bills/buy food and buy gold. And isn't that convenient? And everyone else in Europe is saying "Its just Cyprus, not our problem" Thickos.
If it punches below $1600 I'm blowing my next car savings on more gold.... the car can wait.... this oppourtunity won't. Looks like it might do it tonight...
I think a quiet bank run (bank walk) is underway now in a few European countries. I've read a few things about it. Will have to dig around and see if stats confirm it.
sub-$1600 ... that's my personal resistance level broken. The next Hammer-mobile will be on-hold for a while.
Don't forget QE3, the US is printing $80billion per month to buy mortgage backed securities, backed by mortgages that have been underwater or even insolvent since the 2008 crisis. It's never been explained what that actually means. I take it to mean the US government or the Fed will end up owning the mortgages behind those securities, and eventually the land relating to the mortgages. While that happens of course the buildings on that land will fall into disrepair and eventually be removed. I think of the wasteland of Detroit when I think of QE3. So while the currency supply is inflated, the value of land itself in the US is also inflated, across the country. The EU has built itself a nice house of cards where all the governments seem to owe each other billions, there are even debts between governments who are insolvent owed to other insolvent governments. Plus the EU customs union protectionist rules are destroying industries across the bloc (eg UK fisheries and agriculture sectors) while encouraging industry wide fraud (think the horse meat scandal) and driving down the price of labour by transmigrating low wage Polish workers into French/UK energy hubs and Hungarians into German car factories. It's a mess, a huge mess, and the Cyprus situation is just a symptom. The 1990s was a boom time, 2001-2006 was consolidation even The Simpsons recognised (Lisa Simpson on the 2000's: "It's just like the 90's except the Share market is a LOT lower). Then we have a crisis that we're no closer out of in 2013 than we will be in 2018, probably. We're in a very uncertain and dangerous decade. And I've got no idea why gold is so cheap no too.
