Germans are Voting with Their Pocketbook

IMG Auteur
Published : June 04th, 2010
491 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 

Icelanders voted in a referendum to address their debt problem.  Germans have a problem too, but they are voting with their pocketbook.  They are dumping the euro and buying physical gold, the demand for which is soaring in Germany.

The problem Germans face is a broken promise.  Despite all the rhetoric and assurances that it would be a prudent and wise monetary authority, the European Central Bank is not managing the euro in the judicious way the Bundesbank managed the Deutschemark.  Most importantly, in stark contrast to the steadfast independence from government influence that marked Bundesbank decisions, it is now clear that the ECB is controlled by EU politicians.

After repeated promises not to buy government bonds, the ECB recently announced that they would buy government bonds, obviously bowing to pressure from political leaders.  Germans of course know from hard-learned experience the consequences of this foolhardy policy – the currency is debased.  It loses purchasing power, which lowers the demand for the currency, which in turn means more lost purchasing power.  It is a vicious circle, and the euro is now caught in the middle. 

The ECB put the euro into this maelstrom and is itself now being inexorably pulled down into it.  According to Der Spiegel: “The ECB already has about €25 billion of Greece’s mountain of debt on its books, and it is adding another €2 billion a day, on average.”  There is no exit for the ECB from this paper that no one else wants.  In the words of Der Spiegel: “The truth is that good money is being paid for bad debt.”

As a consequence, Germans are taking the advice of George Bernard Shaw to heart: “You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government.  And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.”  Given the dubious outlook for the euro, it is good advice.


 

James Turk

Free Gold Money Report

 

Article originally published by the Free Gold Money Report.

 

 

James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).. Copyright ©  by James Turk.  All rights reserved.

 

 

Copyright © 2008. All rights reserved.
Edited by James Turk

This material is prepared for general circulation and may not have regard to the particular circumstances or needs of any specific person who reads it. The information contained in this report has been compiled from sources believed to be reliable, but no representations or warranty, express or implied, is made as to its accuracy, completeness or correctness. All opinions and estimates contained in this report reflect the writer's judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.

 

 

 

 

 

<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.