Tuesday, July 2, 2013

Dangerous signs multiplying.

The carefully crafted façade of Social Democracy is coming apart. According to Larry Edelson, we are moving into a cycle of war and sure enough: There is a war in Syria and perhaps another starting in Egypt. This is not affecting gold prices yet, but the price of oil is ratcheted toward $100/BBl.

The second thread is the accelerating pace of transferring gold from West to East. The size of tis drain is estimated at 500 tons/month. This is the consequence of the two or three takedowns orchestrated by Central Banks such as the FED. Someday we will find out why. Hopefully, as Bernanke is being tried.

The third thread is Greece (again). The Greeks are negotiating for the last installment of bailout money: E8B. The Troika complains that the Greeks are not living up to the privatization schemes they had agreed to and the Greeks are desperate to once again fool the troika. What happens if there is no agreement? Or the Greeks are no longer willing to live frugally? In any case, the E8B is the last installment so the Greeks can roll over some bonds. Then what?

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