"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 2 hours Meet The Hedge Fund Billionaires Club
  • 3 hours The Next Housing Crisis Could Be Right Around The Corner
  • 4 hours Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 5 hours Africa’s Fastest Growing Economy
  • 6 hours The Blockchain Boom Hits The Utilities Sector
  • 8 hours Why Smart Money Is Selling Off Right Before The Bell
  • 10 hours Tech Giants Rally Ahead Of Earnings Reports
  • 1 day Global Debt Hits 225% Of GDP
  • 1 day The World’s First Trillionaire Will Be A Space Miner
  • 1 day How Student Debt Could Cause The Next Real Estate Crisis
  • 1 day This $550 Billion Industry Is Betting On Bitcoin
  • 1 day One Commodity Set To Soar On Russian Sanctions
  • 1 day China’s New Car-Market Rules
  • 1 day Oligarch Risk: The New Red Flag For Investors
  • 2 days Five Things To Consider Before Investing In An IPO
  • 2 days Investors Bullish As Earnings Season Kicks Off
  • 2 days Nearly One-Third Of U.S. Lottery Winners Declare Bankruptcy
  • 2 days Is Facebook Still A Buy?
  • 2 days Will Blockchain Stocks Ever Bounce Back?
  • 2 days Geopolitical Tensions Fail To Boost Gold Prices
Tech Giants Rally Ahead Of Earnings Reports

Tech Giants Rally Ahead Of Earnings Reports

Earning season has just begun,…

Could Tesla Be Profitable By The End Of 2018?

Could Tesla Be Profitable By The End Of 2018?

Tesla has struggled to get…

Sol Palha

Sol Palha

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of…

More Info

Euro Woes Part II

"It is a painful thing to look at your own trouble and know that you yourself and no one else has made it." ~ Sophocles

The EU is poised to reach agreement on a potential multi-billion euro bail-out for Greece after weeks of crisis, senior officials have told the BBC.

They say the rescue package would be available if Greece asked for assistance to finance its huge deficit. Eurozone ministers are expected to finalise a proposal setting out a range of options as early as Monday. Greece has not requested help so far. The EU says no deal has been agreed but technical work is continuing. Greece is struggling to deal with a 300bn euro ($419bn; £259bn) debt. It needs to raise about 20bn euros ($27bn) on bond markets to refinance debt maturing in April and May. Its deficit is more than four times higher than eurozone rules allow. Austerity measures aimed at reducing it have provoked public anger. The crisis has also undermined the euro. Full Story

This statement is a joke "They say the rescue package would be available if Greece asked for assistance to finance its huge deficit". Off course they are going to ask for assistance, indirectly they have been begging for assistance from the very start. This aid package will trigger the other beggar members of the PIIGS group to eventually join the handout club. Next in line is probably Spain. If the top members of the EU wanted to send a strong message to the weak members they should have stuck hard and fast to their previous claims that no aid would be forthcoming.

Greece should have been given a simple ultimatum, meet the requirements or leave. This marks the beginning of a new trend. As members cannot deflate their currency, they will run massive deficits as a way to deal with the inability to devalue their currency as a means to make their exports competitive in the global markets. We have entered the "devalue or Die era", where each nation will eventually seek to devalue its currency as a means to gain a competitive edge over its peers. The US and China by pegging its currency to the Dollar are actively using this technique as a means to gain a competitive edge. Many Asian nations are also jumping aboard so expect this trend to pick up. If the EU is unable to find a long term solution to its problem, the EURO could end up becoming a relic of the past. Make sure when the grim reaper comes knocking you are ready for if we enter the hyperinflationary phase, the pain is going to be extreme to say the least. The only way to survive in such an environment is to put a portion of your money into hard assets and the simplest way to do this is to purchase Gold and Silver bullion.

"Men often bear little grievances with less courage than they do large misfortunes." ~ Aesop

 

Back to homepage

Leave a comment

Leave a comment