The markets on Friday expressed relief at the Greek bailout, but as the smoke clears and the mirrors are turned away, the stark reality is that no matter which way you look at it, Greece cannot repay the huge debt burden. The banks are agreeing to a voluntary reduction of the burden in an attempt to avoid a default, but voluntary bank relief or not, Greece has to default on its debt. The ratings agencies are confirming that Greece will be in default if they do not meet the original terms of their loans. They have to rule this way or see their own credibility dissipate.
Please note that we are talking about a bank bailout more than we are talking about a national bailout here. It is this factor that highlights the risks facing the banking system and national currencies.
Confidence in money cannot be negotiated, adjusted by softer attitudes, played with by politicians. We have to call a spade, a spade. That's why gold will not go away from the money systems. It is a lifeboat that won't be sunk. As we look at a world of moral turpitude, more and more people want to know where the lifeboat on the ship is, even if they are not climbing into it yet.
What's worse is that politicians are captaining the ship. Whether it is Europe or the U.S. these people are rocking the boat for their own ends. Can one seriously depend on all these factors for your future financial health?
Do you notice that no-one in Europe's financial system is mentioning Greece's 111 tonnes of gold? Not yet anyway. What are the issues surrounding this gold and what's happening to it?
Gold Prices in different currencies which highlight currency moves:
Swiss Franc - Today: Sf1,269.58: 1 ounce of gold. Friday: Sf1,261.16: 1 ounce of gold.
U.S. $ - Today: $1,503.00: 1 ounce of gold. Friday: $1,511.00: 1 ounce of gold.
Euro - Today: €1,038.55: 1 ounce of gold. Friday: €1,044.20: 1 ounce of gold.
India -Today: Rs. 66,724.18: 1 ounce of gold. Friday: Rs.67,541.70: 1 ounce of gold.
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