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Time to Ditch the Euro

Posted By: Randy GageOctober 5, 2011

This blog focuses on success and prosperity each day.  Now and then it behooves us to drill down a little deeper, and look at some specifics strategies for planning your financial future. 

Today is one of those times…

As you know, I have advised you in the past to diversify your portfolio, and never keep all your wealth in one country, or even one currency.  There are a number of reasons for this:  The recent upheavals in the Arab world demonstrate how transient ruling parties and governments actually are.

And even where governments would seem stable (which most people would have thought of Egypt and Libya), most are really elaborate Ponzi schemes anyway.

So putting all your wealth or retirement options at the mercy of such fraudulent and duplicitous systems is foolish, and not in accord with the laws which govern prosperity.   If you ran a business or investment fund with these practices, you would be arrested and go to prison.  Yet the same governments that would jail you for these crimes practice them with impunity.

But you can’t cheat the universe…

So even for governments, the day of reckoning must come.  And I believe that day is coming sooner, rather than later.

I believe it’s time to ditch the Euro.

Divest yourself of the Euro and Euro-based investments.  It’s apparent that the EU crisis is far greater than the flawed Greek program.  It will require more than two trillion Euros just to recapitalize the banks and cover interest for the necessary loans for Greece, Portugal, Spain, Ireland and Italy.  And that will simply kick the can down the road for two years.  Nothing has been done to stop the underlying causes.

This amount is around three percent of the world’s G.D.P.   This is a historic and crushing level of debt.  The previous Asian and Latin American bailouts weren’t even close to this level.  It doubles the one trillion prop up of the International Monetary Fund (IMF) in 2009.  (And you saw how well that turned out.)

There are some other very serious factors at play here... 

Germany and France, considered the two financial powerhouses on the continent, are both showing cracks.  The liability of Europeans banks is currently at 350 percent of G.D.P.   To give you an idea, that is five times higher than U.S. banks, who manage their finances about as well as a drunken sailor on shore leave.  (Dexia SA, one of the largest banks in Europe is likely to be broken up.)  Everyone seems to think German banks will save the day, but they are leveraged at more than 30 times their assets.

Eighty percent of the lending of the IMF already goes to Europe and the cookie jar is getting bare.  There is currently less than $400 billion in additional capacity, and that won’t solve anything.  It’s highly doubtful the IMF will do another levy to its members just to bailout Europe, and will face some serious resistance if it does.   They could borrow from China (and likely will), but borrowing simply exacerbates the Ponzi scheme; it does nothing to solve it.

There is a European financial stability facility of 440 billion Euros, which is scheduled to be voted on Thursday.  But the Germans are reluctant to do that because now details are leaking that the situation in Greece is worse than originally thought.  Bigger losses for creditors is one of the options  being considered, but that will scare the market even more and weaken the Euro even further.

The vision of the European Union as a strong trading partner around the world hasn’t materialized.  In fact, only 7 percent of Europe’s exports go to fast-developing growth economies. And the euro zone growth rate is essentially flat, meaning unemployment could stay at or about ten percent for many years to come.  (It’s almost 20 in Spain.)  So the foundational requirements for recovery are simply not there.

I could write another 50 pages on the market and financial conditions working against the Euro, but it’s already getting tedious.  Here’s the bottom line:  Member states of the EU lack authority to devalue currency, print money, set interest rates, or increase deficits.   There’s nowhere for them to turn.

Greece and their cooked books are just the tip of the iceberg.  Other countries like Italy, Spain, Portugal, and others are coming right behind it.

And at the end of the day, you’re not going to get all these conflicting parliaments to agree on plans that are going to be increasingly unpopular in their home countries with voters.  Ultimately these bailout plans will begin to look like nine wolves and a sheep voting on what to have for dinner.

Bailout programs don’t work.  They are band-aids on a tumor and don’t address the deficit spending which created the crisis to begin with.  This is much more than a real estate or tech bubble bursting…

It is the results of decades of currencies being falsely propped up with printing presses, and government leaders who lack the courage to make tough choices and live within their budgets.

When countries receive bailouts, they tend to ease up on budget-balancing austerity programs, because they are very unpopular with voters and threaten re-election efforts by the politicians in power.

And ultimately, everyone must live by the laws of prosperity, even governments with printing presses.

As a result, I expect the Euro to be eliminated within two years.  And if and when that does happen, local governments will take the opportunity to devalue it when you are forced to trade in Euros for the new (old) local currencies.

So where do you go from here?

First and foremost, get out of the Euro.  Now it’s not like the U.S. dollar is any better financially.  It’s also almost worthless printing press money that is being continually devalued.  But political factors will cause the American government to keep propping it up.  The EU would love to do the same thing with the Euro, but I believe all the conflicting interests, economies, and politics will eventually sabotage that.  So bail on the Euro now.

Then keep in mind two things…

Precious metals like gold and silver are still the only real form of payment in the world.  Everything else is simply a promissory note.  They’ve taken a slight price dip recently, which makes them an even better value to purchase now.

Finally, remember your own personal prosperity need not be affected by the economy, currencies, or governments.  You must be a critical thinker and look after your own future.  Do not jeopardize your financial security thinking the governments are competent and looking after your best interests.  They’re not.

Be a contrarian.  Question things.  And know that every challenge offers the seeds of an even greater corresponding opportunity!

-RG

 

33 comments on “Time to Ditch the Euro”

  1. Hmmm is it just me but it seems that where the IMF gets into prosperity leaves
    And if I was going bankrupt would it be cool to lend me enough money to keep my children in debt long after i die ?

  2. I always wonder how do countries owe so much?
    The sharks offer credit which gets maxed beyond their capabilities to pay. Greedy governments feather their personal nests while throwing some to the sheeple to keep them happy. When it comes time to pay the piper, it's up to the sheeple to find money they never got...
    Greece is the big news at the moment. How long has that country existed? Now it owes more than it can repay. WHO HOLDS THE PINK SLIPS? Is it countries or groups of individuals who have leverage?
    Something stinks-bad! Please understand when you hear us versus them, it is not the rich versus the poor, it's the controlling bodies versus the masses.
    The controlling body knows that they would have an uprising if we didn't think we have a choice, then you pick the controlling bodies left hand or right hand, there you go you get a choice.
    By being prosperous you have more control of your own destiny
    You always have a choice, either you give someone control of your life or you take charge of your own destiny! The choice is always yours.
    So go forth and make the choice you can live with. If someone is going to make me do something, I choose it to be me!!
    Go forth and prosper, no-one is going to do it for you.

  3. Will the EURO turn to toilet paper? Well, they've been saying the same about the US dollar for the longest time.

    I don't try to predict the market. I'm not smart enough to know what will happen next in the markets. If i predict, sometimes I may be right, but most times I will be wrong.
    The market will do everything it can to frustrate me and prove me wrong.

    Every Joe on the street is bearish on the US dollar, but my group made a bunch going Long on the dollar this year. Not boasting, just saying it's quite pointless to predict.

    Still believe in "value investing"? Buy "cheaper" when the price crashes? Well, AIG was a AAA value buy. It went from $2000/share down to $5/share. Can you afford to dollar-cost-average? Even Warren Buffett will go bankrupt if he did that.

    Still believe in "buy-and-hold"? Markets go up and markets crash - as sure as the sun rises and sets, it always does. The next crash is coming, and the "buy-and-hold value investors" will see their hard-earned money get wiped out, again.

    There are investors who are able to make huge profits in both up and down markets. Learn from these professionals, not the Jim Cramers and the talking heads of cnbc.

    Thanks for listening. Peace.

  4. If you're looking at the planet and wondering where you could go to diversify, there's a place very near the good ol' US of eh. CANADA! Many automatically think it's an extension of the US and so it doesn't even come to mind. But the fact is it has the most stable banking system in the world today, has a AAA credit rating, housing hasn't gone into a black hole, they have water, food - and yes even oil, which, if you listen to Exxon's TV commercials, Americans think is theirs.

    The Province of Alberta alone is planning on adding 75,000 very high tech jobs over the next while. The Province of Saskatchewan with just over a million in total population, has more innovation going on than you can count. Canadians call for and have a national election within six weeks spending approximately $27.95. In short, while the country has its issues, it's an amazing place and worthy of investment. I'm just saying...

    Yes, I'm a citizen of Canada - and I'm a proud citizen of the USA as well. I do love living here in Arizona but I sure do get tired of the self-inflicted wounds - financial and otherwise.

  5. Hey Randy,
    Oh boy, the World banks and their little bankettes are really screwing things up. The real value in this world is energy. And more importantly it is human energy.

    We can't do anything in this world without human energy including thoughts and actions. Money and physical items are merely things to influence people to actually use their energy for a greater purpose.

  6. Very good article - we heard things like that about the dollar for years.

    But I think it's just a up and down.

    The Euro was up for years now and the dollar was down.

    And now it has to change again to a high dollar and a low Euro for years.

    I bet on the Dollar for the next ten years and then we will see some new scenarios for a strong Euro again.

    And so on, and so on....

    It is just a game.

    Money is just what IMF and governments say that it is - there is no real value in it.

    And it is the same with gold, silver or whatever.

    If nobody wants to buy - gold is nothing. And it is very expensive at the moment.

    That's my opinion.

    We will see what happens.

    Best greetings from Austria

    Volker

    1. The dollar is just a Ponzi scheme as well. But the politicians won't let it fail completely. But I believe in the EU, the different politics will do it in.

      -RG

  7. Very good article - we heard things like that about the dollar for years.

    But I think it's just a up and down.

    The Euro was up for years now and the dollar was down.

    And now it has to change again to a high dollar and a low Euro for years.

    I bet on the Dollar for the next ten years and then we will see some new scenarios for a strong Euro again.

    And so on, and so on....

    It is just a game.

    Money is just what IMF and governments say that it is - there is no real value in it.

    And it is the same with gold, silver or whatever.

    If nobody wants to buy - gold is nothing. And it is very expensive at the moment.

    That's my opinion.

    We will see what happens.

    Best greetings from Austria

    Volker

  8. Hi RG,

    Some food for thought.....

    Doesn't focusing on lack, or money mismanagement among the world's governments, perpetuate the existence of these situations? We create It All, collectively, according to each individual vision. The more the visions change, the more the outside changes.

    .....I see and feel all managing money more responsibly, becoming more abundant....Sure, situations might not conform to my image....instantly.....but my persistent picturing, focusing on good...allows my practical dreaming to influence the situation, to correct itself.

    Thanks for sharing the thought-provoking post, RG!

    Ryan

  9. Hi Randy,

    wow, thanks for sharing this. It's good to hear these numbers from an outsider. I am usually not frightened about stuff politicians say, but when our chancellor Angela Merkel tied the fate of the European Union to the fate of the euro, I cringed. It's all ego driven, is it not ?

    You are right on that any private business owner would go to jail for the business practices governments show. Just look at the public retirement and health care systems. Those are pyramid schemes, but they're not illegal. Only because they're run by governments.

    Only time will tell...

    Be blessed

    Oliver

  10. Great post summing up so many important points. It's such a confusing subject so I think it's really important you help get this message out there.

    I've been studying this stuff for the past few years but don't pretend to really understand. The whole Federal Reserve thing when you read it in Rich Dad's books is like a fairy tale!

    Thanks for such a powerful reminder - sad though that so few will actually believe this to be the truth ... or even if they do they'll put off taking any kind of action to protect themselves

  11. Randy,
    How do you feel about the legislation proposed by Ron Paul to audit the Fed? Will it help to get us focused in the right direction or just crack open a whole new can of worms?
    -wess

  12. The Euro currency is doomed.It was a mistake from the start.I expect a major French bank to collapse very soon and that will herald the beginning of the end of the Euro currency.

  13. Randy, as a German native myself, I live right in the middle of this chaos. People and the Governm. is not profound, it was never and it won´t be ever. They never go for the source, the stay on the blank surface and keep emotions down. My parents are angry about the EURO, many where against this (regular fear), I thought it was a goods step outside the old box. Everything looks like it soon falls apart - but so far, it never fell apart in the past 40 years, not that I can remember when there were ups and downs. You sure heard voices in Bratislava. We Germans use to safe a lot of money while others love to spend it. And you got to a critical point: which is the sheep among the wolfs? ...where is most of the money? Last time I asked my bank about selling/buying gold, they did not seem to be nearly interested in offering me a deal. They showed a cold shoulder, which was a statement to me. Gold must be THE thing to buy. Newspapers even call out for buying diamonds again! Yes, the best is to know a lot about what´s going on in the world and move around to not get stuck in 1 country with just 1 type of money. We´ll see! We get there, I am sure as well. Enjoy your great day and thanks for this interesting post!

  14. Hi, Randy,

    Great post! As a financial trader myself, I watch the markets daily. Surely a good place to maintain Prosperity Consciousness in the face of much “gloom and doom.” But, as you wrote, there is always opportunity.

    As odd as it may seem, once Euro currency collapses, much of the world will stampede into the doomed US Dollar, since it is still the global reserve currency. Right now, the metals and even the commodity markets are not big enough to absorb all of that capital which will (IMO) flee the Euro.

    On a level for personal finance and wealth preservation, people would do well to remember Aristotle’s criteria for real money:

    1) Portable
    2) Divisible
    3) Fungible (one piece can be easily exchanged for another of equal value).
    4) Has some intrinsic value.

    That’s why precious metals have been money for over 5000 years, with the usual cycles of increase and decrease.

    Hope you had a great time in Slovakia!

  15. Mr Gage,

    I wonder if you will make a post about Mr Jobs death. People who listened to his speech at Stanford can notice path of prosperity, consequence of the good and bad choices in life and the turn he took in his life when the his doctor told him that he has just a little bit of time left.

    I red over the internet an interesting comment: One said the M Gates would be remind in human history of the new Carnegie and M Jobs led a revolution.

  16. The World is starting to look like a huge Inner city. Poor and the rich will be okay.The rich know the game and how to transfer wealth. In kaos its always an opportunity.The poor will just sit back and be poor.But the Middle class are the ones who are mad as hell and will not take it anymore because they trusted Government.Big Mistake ! Who would have thought a Prosperity mindset and Critical thinking would be the new Revolution or should I say Evolution !

  17. My major in University was economics. Exchange and interest rates were a subject that I found interesting. Each country has their own currency they set economic policy with - vis a vis interest rates. I had a feeling the Euro would fail because it is a common currency with no country to back it. It was much simpler when countries had their own currency and its value was set by the supply and demand for that currency. Interest rates did have some effect on its supply and demand but mainly the exchange rate of each currency represented the amount of trade that country was doing with others. High demand for US good means high demand for US dollar hence the value rises - a fair market value representation. The Euro was just a bad idea.

  18. Raymond
    October 10,2011 at 7:25 PM

    The monetary situations around the globe
    now, calls for critical thinking,in respect
    to one's prosperity.

    Thank You.

  19. The expected QE (quantitive easing) by the Bank of England is a copycat of US failures to halt a crisis turning into a depression. It’s a failure of BOE policies and another bailout of the banks. QE only creates inflation as history shows. Britain could now be under the BOE pilot entering a no return zone of hyperinflation.

    The 2008 banking fraud crisis started in Britain with a subsidiary of Zurich Financial Services, Zurich the Insurers, (AIGFP unit in London.

    The truth (ZFS) was insolvent and under command by the US Government related to serious fraud was suppressed in the UK.

    This fraud started in the nineties many years before with Zurich the insurer, unfairly and fraudulently refusing to pay out claims on its policies. This escalated into rigging prices and steering business to itself.

    A judge said it was very reactive advertising insurance fraud committed against Zurich. But was not so fond of mentioning the fraud it perpetrated against its own policyholders.

    Zurich insured anything and everything. Because there was no intention of paying out it was simply a fraud. A company trading with different names hundreds of subsidiaries and subsidiaries of the subsidiary and holding companies.

    The FSA and the Treasury under the BOE guarded Government relied on the Financial Services Sector, who had rigged rules and little control to stop the fraud.

    This manifested itself in the 2008 Banking Crash and the bailout of UK high street Banks. And was repeated throughout the world, ZFS (Zurich insurance, its fraud, corruption, deception, price fixing, bid rigging, and worse had bankrupted Countries, Financial institutions, Companies, Communities and the Public and future Generations.

    The US Government Bailed out Zurich its policyholders and its banks, and then ploughed over $800 thousand million dollars of Quantitive Easing into the Worlds Banking system.

    Effectively keeping banks alive that had bet customers money on schemes created by the corrupt greedy banks and fraudulent insurer (Zurich.

    Now the BOE will repeat this failed experiment to save the to big to fail fraudsters.

    And the result will be similar Inflation, Unemployment, Crime, and Fraud by the same Banks and Insurers and Government. Followed by the worst events possible, the entire breakdown of law and order, wholly out of any control of authority.

    Sterling has for centuries been the Reserve World Currency, the BOE should take the leading role “now, while the opportunity exist to become again the currency of World trade rather than devalue the Pound to inflate away dept. Imposing increases in raw material cost for everyone, so no exports.

    People are angry they know the Government, Ministers, MPs, Authorities, Banks, Insurers and Corporate are corrupt. Failure to change will see a united response from the public in harmony with enforcers Police Army Air force and Navy.

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  • 33 comments on “Time to Ditch the Euro”

    1. Hmmm is it just me but it seems that where the IMF gets into prosperity leaves
      And if I was going bankrupt would it be cool to lend me enough money to keep my children in debt long after i die ?

    2. I always wonder how do countries owe so much?
      The sharks offer credit which gets maxed beyond their capabilities to pay. Greedy governments feather their personal nests while throwing some to the sheeple to keep them happy. When it comes time to pay the piper, it's up to the sheeple to find money they never got...
      Greece is the big news at the moment. How long has that country existed? Now it owes more than it can repay. WHO HOLDS THE PINK SLIPS? Is it countries or groups of individuals who have leverage?
      Something stinks-bad! Please understand when you hear us versus them, it is not the rich versus the poor, it's the controlling bodies versus the masses.
      The controlling body knows that they would have an uprising if we didn't think we have a choice, then you pick the controlling bodies left hand or right hand, there you go you get a choice.
      By being prosperous you have more control of your own destiny
      You always have a choice, either you give someone control of your life or you take charge of your own destiny! The choice is always yours.
      So go forth and make the choice you can live with. If someone is going to make me do something, I choose it to be me!!
      Go forth and prosper, no-one is going to do it for you.

    3. Will the EURO turn to toilet paper? Well, they've been saying the same about the US dollar for the longest time.

      I don't try to predict the market. I'm not smart enough to know what will happen next in the markets. If i predict, sometimes I may be right, but most times I will be wrong.
      The market will do everything it can to frustrate me and prove me wrong.

      Every Joe on the street is bearish on the US dollar, but my group made a bunch going Long on the dollar this year. Not boasting, just saying it's quite pointless to predict.

      Still believe in "value investing"? Buy "cheaper" when the price crashes? Well, AIG was a AAA value buy. It went from $2000/share down to $5/share. Can you afford to dollar-cost-average? Even Warren Buffett will go bankrupt if he did that.

      Still believe in "buy-and-hold"? Markets go up and markets crash - as sure as the sun rises and sets, it always does. The next crash is coming, and the "buy-and-hold value investors" will see their hard-earned money get wiped out, again.

      There are investors who are able to make huge profits in both up and down markets. Learn from these professionals, not the Jim Cramers and the talking heads of cnbc.

      Thanks for listening. Peace.

    4. If you're looking at the planet and wondering where you could go to diversify, there's a place very near the good ol' US of eh. CANADA! Many automatically think it's an extension of the US and so it doesn't even come to mind. But the fact is it has the most stable banking system in the world today, has a AAA credit rating, housing hasn't gone into a black hole, they have water, food - and yes even oil, which, if you listen to Exxon's TV commercials, Americans think is theirs.

      The Province of Alberta alone is planning on adding 75,000 very high tech jobs over the next while. The Province of Saskatchewan with just over a million in total population, has more innovation going on than you can count. Canadians call for and have a national election within six weeks spending approximately $27.95. In short, while the country has its issues, it's an amazing place and worthy of investment. I'm just saying...

      Yes, I'm a citizen of Canada - and I'm a proud citizen of the USA as well. I do love living here in Arizona but I sure do get tired of the self-inflicted wounds - financial and otherwise.

    5. Hey Randy,
      Oh boy, the World banks and their little bankettes are really screwing things up. The real value in this world is energy. And more importantly it is human energy.

      We can't do anything in this world without human energy including thoughts and actions. Money and physical items are merely things to influence people to actually use their energy for a greater purpose.

    6. Very good article - we heard things like that about the dollar for years.

      But I think it's just a up and down.

      The Euro was up for years now and the dollar was down.

      And now it has to change again to a high dollar and a low Euro for years.

      I bet on the Dollar for the next ten years and then we will see some new scenarios for a strong Euro again.

      And so on, and so on....

      It is just a game.

      Money is just what IMF and governments say that it is - there is no real value in it.

      And it is the same with gold, silver or whatever.

      If nobody wants to buy - gold is nothing. And it is very expensive at the moment.

      That's my opinion.

      We will see what happens.

      Best greetings from Austria

      Volker

      1. The dollar is just a Ponzi scheme as well. But the politicians won't let it fail completely. But I believe in the EU, the different politics will do it in.

        -RG

    7. Very good article - we heard things like that about the dollar for years.

      But I think it's just a up and down.

      The Euro was up for years now and the dollar was down.

      And now it has to change again to a high dollar and a low Euro for years.

      I bet on the Dollar for the next ten years and then we will see some new scenarios for a strong Euro again.

      And so on, and so on....

      It is just a game.

      Money is just what IMF and governments say that it is - there is no real value in it.

      And it is the same with gold, silver or whatever.

      If nobody wants to buy - gold is nothing. And it is very expensive at the moment.

      That's my opinion.

      We will see what happens.

      Best greetings from Austria

      Volker

    8. Hi RG,

      Some food for thought.....

      Doesn't focusing on lack, or money mismanagement among the world's governments, perpetuate the existence of these situations? We create It All, collectively, according to each individual vision. The more the visions change, the more the outside changes.

      .....I see and feel all managing money more responsibly, becoming more abundant....Sure, situations might not conform to my image....instantly.....but my persistent picturing, focusing on good...allows my practical dreaming to influence the situation, to correct itself.

      Thanks for sharing the thought-provoking post, RG!

      Ryan

    9. Hi Randy,

      wow, thanks for sharing this. It's good to hear these numbers from an outsider. I am usually not frightened about stuff politicians say, but when our chancellor Angela Merkel tied the fate of the European Union to the fate of the euro, I cringed. It's all ego driven, is it not ?

      You are right on that any private business owner would go to jail for the business practices governments show. Just look at the public retirement and health care systems. Those are pyramid schemes, but they're not illegal. Only because they're run by governments.

      Only time will tell...

      Be blessed

      Oliver

    10. Great post summing up so many important points. It's such a confusing subject so I think it's really important you help get this message out there.

      I've been studying this stuff for the past few years but don't pretend to really understand. The whole Federal Reserve thing when you read it in Rich Dad's books is like a fairy tale!

      Thanks for such a powerful reminder - sad though that so few will actually believe this to be the truth ... or even if they do they'll put off taking any kind of action to protect themselves

    11. Randy,
      How do you feel about the legislation proposed by Ron Paul to audit the Fed? Will it help to get us focused in the right direction or just crack open a whole new can of worms?
      -wess

    12. The Euro currency is doomed.It was a mistake from the start.I expect a major French bank to collapse very soon and that will herald the beginning of the end of the Euro currency.

    13. Randy, as a German native myself, I live right in the middle of this chaos. People and the Governm. is not profound, it was never and it won´t be ever. They never go for the source, the stay on the blank surface and keep emotions down. My parents are angry about the EURO, many where against this (regular fear), I thought it was a goods step outside the old box. Everything looks like it soon falls apart - but so far, it never fell apart in the past 40 years, not that I can remember when there were ups and downs. You sure heard voices in Bratislava. We Germans use to safe a lot of money while others love to spend it. And you got to a critical point: which is the sheep among the wolfs? ...where is most of the money? Last time I asked my bank about selling/buying gold, they did not seem to be nearly interested in offering me a deal. They showed a cold shoulder, which was a statement to me. Gold must be THE thing to buy. Newspapers even call out for buying diamonds again! Yes, the best is to know a lot about what´s going on in the world and move around to not get stuck in 1 country with just 1 type of money. We´ll see! We get there, I am sure as well. Enjoy your great day and thanks for this interesting post!

    14. Hi, Randy,

      Great post! As a financial trader myself, I watch the markets daily. Surely a good place to maintain Prosperity Consciousness in the face of much “gloom and doom.” But, as you wrote, there is always opportunity.

      As odd as it may seem, once Euro currency collapses, much of the world will stampede into the doomed US Dollar, since it is still the global reserve currency. Right now, the metals and even the commodity markets are not big enough to absorb all of that capital which will (IMO) flee the Euro.

      On a level for personal finance and wealth preservation, people would do well to remember Aristotle’s criteria for real money:

      1) Portable
      2) Divisible
      3) Fungible (one piece can be easily exchanged for another of equal value).
      4) Has some intrinsic value.

      That’s why precious metals have been money for over 5000 years, with the usual cycles of increase and decrease.

      Hope you had a great time in Slovakia!

    15. Mr Gage,

      I wonder if you will make a post about Mr Jobs death. People who listened to his speech at Stanford can notice path of prosperity, consequence of the good and bad choices in life and the turn he took in his life when the his doctor told him that he has just a little bit of time left.

      I red over the internet an interesting comment: One said the M Gates would be remind in human history of the new Carnegie and M Jobs led a revolution.

    16. The World is starting to look like a huge Inner city. Poor and the rich will be okay.The rich know the game and how to transfer wealth. In kaos its always an opportunity.The poor will just sit back and be poor.But the Middle class are the ones who are mad as hell and will not take it anymore because they trusted Government.Big Mistake ! Who would have thought a Prosperity mindset and Critical thinking would be the new Revolution or should I say Evolution !

    17. My major in University was economics. Exchange and interest rates were a subject that I found interesting. Each country has their own currency they set economic policy with - vis a vis interest rates. I had a feeling the Euro would fail because it is a common currency with no country to back it. It was much simpler when countries had their own currency and its value was set by the supply and demand for that currency. Interest rates did have some effect on its supply and demand but mainly the exchange rate of each currency represented the amount of trade that country was doing with others. High demand for US good means high demand for US dollar hence the value rises - a fair market value representation. The Euro was just a bad idea.

    18. Raymond
      October 10,2011 at 7:25 PM

      The monetary situations around the globe
      now, calls for critical thinking,in respect
      to one's prosperity.

      Thank You.

    19. The expected QE (quantitive easing) by the Bank of England is a copycat of US failures to halt a crisis turning into a depression. It’s a failure of BOE policies and another bailout of the banks. QE only creates inflation as history shows. Britain could now be under the BOE pilot entering a no return zone of hyperinflation.

      The 2008 banking fraud crisis started in Britain with a subsidiary of Zurich Financial Services, Zurich the Insurers, (AIGFP unit in London.

      The truth (ZFS) was insolvent and under command by the US Government related to serious fraud was suppressed in the UK.

      This fraud started in the nineties many years before with Zurich the insurer, unfairly and fraudulently refusing to pay out claims on its policies. This escalated into rigging prices and steering business to itself.

      A judge said it was very reactive advertising insurance fraud committed against Zurich. But was not so fond of mentioning the fraud it perpetrated against its own policyholders.

      Zurich insured anything and everything. Because there was no intention of paying out it was simply a fraud. A company trading with different names hundreds of subsidiaries and subsidiaries of the subsidiary and holding companies.

      The FSA and the Treasury under the BOE guarded Government relied on the Financial Services Sector, who had rigged rules and little control to stop the fraud.

      This manifested itself in the 2008 Banking Crash and the bailout of UK high street Banks. And was repeated throughout the world, ZFS (Zurich insurance, its fraud, corruption, deception, price fixing, bid rigging, and worse had bankrupted Countries, Financial institutions, Companies, Communities and the Public and future Generations.

      The US Government Bailed out Zurich its policyholders and its banks, and then ploughed over $800 thousand million dollars of Quantitive Easing into the Worlds Banking system.

      Effectively keeping banks alive that had bet customers money on schemes created by the corrupt greedy banks and fraudulent insurer (Zurich.

      Now the BOE will repeat this failed experiment to save the to big to fail fraudsters.

      And the result will be similar Inflation, Unemployment, Crime, and Fraud by the same Banks and Insurers and Government. Followed by the worst events possible, the entire breakdown of law and order, wholly out of any control of authority.

      Sterling has for centuries been the Reserve World Currency, the BOE should take the leading role “now, while the opportunity exist to become again the currency of World trade rather than devalue the Pound to inflate away dept. Imposing increases in raw material cost for everyone, so no exports.

      People are angry they know the Government, Ministers, MPs, Authorities, Banks, Insurers and Corporate are corrupt. Failure to change will see a united response from the public in harmony with enforcers Police Army Air force and Navy.

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