Key Resistance Broken To The Upside

I haven't really been following the Euro Zone issues... how close are things to the point of SHTF?

 

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I thought they already agreed to a 53% haircut? It was in the Journal a few days ago.

 

Oh I agree with this too. Their only option is to default or become a vassal state with no sovereign rights and all wealth sucked out of the place. Even this won't stop the inevitable as they are at the puck end of the hockey stick graph. Next Stop - Infinity

 

The situation in Europe is still shakey. It's also very murky! The Greece bailout is a done deal. Some analysts say it's not enough; a minority say it's OK. The majority concensus is that the Greece bailout kicks the can down the road for another year.

It seems Ireland is beginning to heal. But Spain, Italy and Portugal are still on the precipice. How long before those countries reach crisis mode? No one knows.

That's the bottom line. No one knows. The situation is murky. I hope that clarifies it for you.

 

Sounds like someone has been playing a lot of Civilization 5.

Clarifies it a good amount for me. Thanks!

 

Indeed. With all the things of value in that country, ancient relics, beautiful beaches, so forth and so on, the only physical asset central bankers want is the gold. This should be a wake up call, as I've been saying for months, that gold isn't just a "commodity".

This, however, won't change anything as they did nothing to solve the issue at hand as Greece is at the point of no return. The debt will continue to grow faster than the country could ever possibly hope to pay it back. That train has pulled out and it's destination isn't pretty. Unfortunately the rest of us have tickets on this express train as well. At least the ones holding gold will have the better seats.

 

Nope. Never heard of it. "Beyond the Infinite" might be a good analogy as nobody knows what is at the other end when this is over.

 

Can someone post a link about the Greek bailout and "pay the debt or give up the gold"/"the only physical asset central bankers want is the gold"? I can't find anything talking about Greek gold being a factor in the bailout.

Edit: Nevermind, I found a couple of articles finally. (http://www.nytimes.com/2012/02/22/w...s-agree-on-new-greek-bailout.html?_r=2&src=tp)

 

Yes, the 53% haircut is a done deal. Banks and investors take a 107B euro hit. The Greek debt is then cut by 107B euros. In addition it appears the March 20th default will be averted due to a 130B euro loan that is contingent on Greece agreeing to austarity measures.

If Greece agrees to the austerity measures they get 130B euro loan which averts the default. Greece is sure to agree. Most economists think the whole deal, if executed, only kicks the can down the road another year or so.

 

After reading about Greek debt and the possiblity of debt-holders siezing the country's gold, I have to chuckle because even if Greece could sell all of its gold holdings at spot, that would cut 1.3% of its debt. I don't think gold is going to be any factor there.

 

Merc:

I joined this forum to gain knowledge edit

 

Personally i am not looking to buy anything unless i am getting it way under spot or BV.

 

Start with this. Then go to the blog's main page.

http://www.zerohedge.com/news/projected-piigs-pillage-32335-tons-gold-be-confiscated-insolvent-european-banks

The NY Times is a mouthpiece for the status quo & wall street. Nothing of importance is to be learned there.

I would also do a youtube search on "Nigel Farage" and look at his videos where he addresses the EU parliament. He is one of the EU ministers from the UK.

 

The fact remains that Greek gold holdings are a small drop in the bucket. Nothing to conspire over.

 

Because I edited the original offending post you have no idea what merc was referring to. The post in question was against the rules just as calling other members names is. If EVERYONE would stick to the original topic we wouldn't have these issues.

 

They are small when denominated in fiat money. Central bankers don't care about that as they can create fiat out of thin air. You have to understand how gold is used by the central banks as an asset for their "base money". It's much more important than they let on as gold is one of the legally defined assets they can use to back the "base money" supply. Because of the effects of reverse fractional banking, and even worse QE, gold's worth is huge.

However, if they manage to take Greek's gold, then they effectively short circuit their ability to leave the Eurozone and create their own currency. Gold is the one thing that will allow them to do this and immediately rejoin the world financial community. Without it, they would have nothing to back their base money with and hence there would not be a way for them to buy $s and other currencies without it.

 

I am not in the know on bullion speculation, but I am interested. Why is it that the only person that I actually know who works with PM's continually speaks of Gas Prices? How in the H can oil prices affect bullion prices?

 

High oil prices produce inflation. Bullion prices increase with inflation. Plus it takes a lot of deisel to dig an ounce of silver out of the ground, refine it, transport it.

 

If gold were to be revalued at some point after becoming real money again it would behoove anyone acquiring it to do so prior to the revaluation.

It takes fuel to run the machinery at a mine, to deliver various goods.. oil prices can inflate everything all by itself. It is the only commodity with more industrial uses than silver after all. 3 times as many too.

 

Searching the net does not produce any "settlement terms" of Greece's deal, many indicate that it is not settled, and this is just another "Bullion types sites" spreading hearsay. If any one has an actual url for the settlement from Greece or EU, concerning Greece's gold in case of default, please give it.

Zero Hedge only says

The news supposedly from Reuters, was actually from a Gold forum, and not the actual Reuter's news service. this was also said by Zero Hedge, and many silver and gold bullion forums without real indicated validation.

And ZeroHedge and the bullion sites are mouthpieces for the "suck in the PM investors with scare stories" group and do not rely on facts ( IMO).

When something is said on any forum, take it with a ton of salt, until you find actual validation.