Make sure you hold some gold as Government ‘Ponzi Schemes’ escalate
As governments continue to perpetuate the chaos that is already occurring in the currency markets, the advice is make sure you own some gold – the oldest form of sound money.
David Levenstein
MineWeb.com
The price of gold pushed through and held above the key resistance level of $1700 an ounce last week, as the US dollar dropped sharply due to the euphoria from Europe about the agreement made at the Euro Summit in Brussels. No one was more excited about the outcome than French president, Nicolas Sarkozy, who seems determined to save the world.
With regard to the recent summit in Brussels the key issues agreed on were, that the euro currency remains at the core of the European project of peace, stability and prosperity. The leaders also outlined certain steps that have to be taken in order to solidify the economic union. And, commensurate with the monetary union, they agreed on certain key issues.
They all agreed that the Greece’s debt to GDP ratio with should decline to 120% by 2020. They also agreed that the European Financial Stability Facility (EFSF) resources can be leveraged. The leverage could be up to 4 or 5, which is expected to yield around 1 trillion euro (around 1.4 trillion dollar).
It was also agreed that it was necessary to raise confidence in the banking sector by (i) facilitating access to term-funding through a coordinated approach at EU level and (ii) the increase in the capital position of banks to 9% of Core Tier 1 by the end of June 2012.
The agreement also included a deal between Eurozone leaders and banks to force private investors to take a 50% loss or “haircut”, slicing 100 billion euros off the 350-billion-euro debt pile hampering Greece.
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