16 May, 2010

Will the Euro Sink US?

This is not good.

Just as our economy seems to be turning a corner, news is starting to percolate that European gold dealers are out of inventory and panic buying is building. Few people in Europe believe the Greek bailout will solve the problem, as ever increasing debt still looms in many other countries -- including Spain, Portugal, Italy, and even Great Britain. Some are openly questioning whether the Euro can survive. Meanwhile, the Euro is plunging versus both the Dollar and the Yen, raising the specter of inflation. This burgeoning flight to gold may just be the first sign of a building global panic, something which could turn the Great Recession into the first major global depression in 80 years.

Meanwhile, we continue to spend money we don't have, raising our debt to levels that not only our children but our children's children's children will still be paying off.

If I had any money right now, I'd be tempted to join in the gold buying panic.

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