was a double post, but I´ll just add more
I don't think they are correct in a currency reversal. That would never happen. It would be political suicide for all leaders and cause mass
uprisings. No, I think the collapse will lead to a new Euro zone deal. Then in the process the US will have its own crisis, whether it be social or
financial and then we will see the emergence of the new currency followed shortly by the regulatory entity with a single leader. If you are wondering
how Gold is looking take a look at the graph down below. It seems like the only "stable" thing to invest in. I would opt to actually OWN the gold
though. No paper receipts will be respected IMO.
Contagion is here and now and we are witnessing a ‘Perfect Storm’ involving a global banking and sovereign debt crisis leading to an international
XAU-GBP Exchange Rate (G14 30 Days - Bloomberg)
The scale of the debt crisis is so humongous that it is now beyond the scope of policy makers and central banks to sort out.
Volatility and wild gyrations in all financial markets continues due to a confluence of negative data, news and fundamentals.
French banks have been downgraded and Chinese Premier Wen’s call that Europe get its own house in order quashed the unsubstantiated and unsourced
rumors regarding massive Chinese intervention to solve the Eurozone debt crisis.
European banks are hemorrhaging deposits as savers and money funds pile into other perceived havens such sterling, dollar and Swiss franc deposit
accounts. Retail and institutional deposits at Greek banks fell 19 percent in the past year and almost 40 percent at Irish lenders in 18 months.
A tiny fraction of these European deposits has gone into gold with the majority going into other fiat currency deposits. It is not just the saver of
periphery nations who are opening non euro deposit accounts - many German savers are opening up deposit accounts in Switzerland.
A Jefferies report suggesting that Europe is about to experience a Lehman Brothers collapse and splintering of the Eurozone continues to be
digested and reverberate around global markets.
The report echoes and confirms what more astute observers, including GoldCore, have been warning of for some time.
The author is David Zervos, Managing Director and the Head of Global Fixed Income Strategy at Jefferies and a former Federal Reserve official
(Visiting Advisor in the Division of Monetary Affairs in the Federal Reserve Board in Washington DC).
The Jefferies report first covered on Zero Hedge warns of “a move towards financial market nationalization that will make the U.S. experience look
like a walk in the park.”
They warn of a breakup of the euro and periphery countries returning to their respective currencies – the escudo, lira, punt, peseta and drachma.
However they focus on Portugal, Ireland and Greece or what they term the ‘PIG’.
“The most likely scenario for these countries is full bank nationalization followed by exit and currency reintroduction.”
edit on 10-5-2012 by BIHOTZ because: (no reason given)