Monday, July 6, 2015
Greece and Gold
So predictable. Gold is dead because even the Greek crisis hasn't moved the price.
But the Greek crisis is the beginning of what will move the price.
It hasn't moved yet because the only thing that counts is THE NARRATIVE. And the current narrative states that the Greek Crisis is well contained. Just like the Sub Prime crisis was well contained.
But the Greek Crisis has only just begun. Greece is not all that different from Spain and France and Portugal and Italy and Belgium. All of these countries are over-indebted and all are running ever increasingly large deficits that are made artificially even more burdensome by the strength of the Euro.
Now Podemos in Spain wants restructuring. As does the National Front in France. As does PS in Portugal.
All will need debt restructuring at some point.
(As will Puerto Rico, California, New Jersey, Ireland, Japan, the UK, Brazil, Russia, etc etc etc)
Here's the problem. Debt restructuring is never on the table until there is default and chaos.
Because the Banks rule the world and they don't want to lose one penny they think should be coming to them. They'd rather lose it all.
This is what happened in Greece. The German banks would not even consider restructuring. They just kept bailing out Greece, so that they could keep making interest payments while they went into unending depression.
Now they have chaos.
But don't worry. It's contained.
That's the mantra. That's the Narrative.
And until the Banks lose control of that narrative, gold is going nowhere.
But how long can they keep control of such utter nonsense?
We'll see. But I'll bet not all that much longer.