Chart usGOLD   Chart usSILVER  
 
Food for thought
The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing
Albert Einstein  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1278.39-8.25
Silver 19.45-0.01
Platinum 1417.500.80
Palladium 904.000.10
WORLD MARKETS
DOWJONES 1709815
NASDAQ 458023
NIKKEI 15669192
ASX 565728
CAC 40 4380-1
DAX 94799
HUI 2463
XAU 1021
CURRENCIES (€)
AUS $ 1.4124
CAN $ 1.4300
US $ 1.3126
GBP (£) 0.7917
Sw Fr 1.2078
YEN 137.5700
CURRENCIES ($)
AUS $ 1.0761
CAN $ 1.0895
Euro 0.7619
GBP (£) 0.6032
Sw Fr 0.9202
YEN 104.8440
RATIOS & INDEXES
Gold / Silver65.73
Gold / Oil13.35
Dowjones / Gold13.37
COMMODITIES
Copper 3.150.00
WTI Oil 95.76-0.20
Nat. Gas 4.02-0.05
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Europe: 'Cuts Aren't Working...Let's Spend...Oh Wait...'
Published : May 19th, 2012
366 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

The gravity of the global debt crisis can be seen in the flip-flop game plans from policymakers. The reaction to the 2008 crisis was to try to "spend our way out of this". That didn't work, but it did succeed in pushing debt levels even higher. The second approach, championed by Germany's Angela Merkel, is based on the "cut spending and restore confidence" theory. That isn't working either.

 

Now we have come full circle with Tim Geithner and the IMF again calling for "pro-growth" policies. Pro-growth is a politically correct way of saying "spend money we don't have." According to the Wall Street Journal (WSJ), the Keynesian approach of the government leading the private sector to the promise land of growth, is now being embraced by the most broke nation of them all - Greece:

 

Mr. Tsipras, the head of Greece's left party and an engineer by training, recommends a stimulus package to boost the Greek economy and has called for tearing up the country's existing austerity-for-loans program. He has suggested scrapping plans to lay off 150,000 public-sector workers by 2015, and repealing recent measures to push down private-sector wages. He favors nationalizing the banking system so as to better direct lending policies, and speaks favorably of Franklin Delano Roosevelt's Depression-era New Deal program and President Barack Obama's stimulus package--something Mr. Tsipras said is lacking in Europe.

 

As we outlined in October 2011, the debt levels of many nations have moved into unsustainable territory. Thus, it is not surprising that policies from both ends of the spectrum have failed. Mr. Tsipras is also engaging in a full-tilt game of political chicken. From the WSJ:

 

The head of Greece's radical left party--throwing down a gauntlet that could increase tensions between Greece and its frustrated European creditors--said he sees little chance Europe will cut off funding to the country but that if it does, Athens will stop paying its debts.

 

The video below looks at the current state of the markets (SPY) as we head into a G-8 weekend. Risk assets are oversold, but remain in prove-it-to-me mode. We will continue to err on the defensive side until the market or policymakers show us something of substance.

 


 

http://www.youtube.com/watch?v=Vi7nLUAmzYg&am...player_embedded

 

 

 

 

Data and Statistics for these countries : Germany | Greece | All
Gold and Silver Prices for these countries : Germany | Greece | All
Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Chris Ciovacco
All articles by
Chris Ciovacco
Next article by
Chris Ciovacco
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Chris Ciovacco

Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com
Chris Ciovacco ArchiveWebsiteSubscribe to his services
Most recent articles by Chris Ciovacco
8/29/2014
8/28/2014
8/27/2014
8/26/2014
8/22/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer