ECB Claims South is Richer than North = No Bailouts
The ECB has made a study a few days ago claiming that those in Southern Europe are richer than those in Germany to support the view that no more bailouts will take place of banks. The ECB now claims that Cypriots are more wealthy than the Germans. The average assets of a German household is just under 200,000 euros. In Spain, however, it amounts to 300,000 euros. And in Cyprus is of average assets per household even at 670,000 euros. Thus, the ECB has determined that – and the debate in Germany has begun to immediately accelerated with envy in turbo-mode. This is a stunningly biased study to justify letting Southern Europe fend-for-itself. Why keep the Euro? What benefit does this offer any more? The EU with an economic union removing all trade barriers is fine. Why does there need to be an ECB, pretend Euro single currency, and the exportation of austerity that will only lead to the South blaming the North? Remember the American Civil War?
Europe is spinning lie after lie all in a desperate attempt to hold the Euro when the currency is doomed because there is no single national policy or debt. This is a dog chasing its own tail with no end-game in sight. Any exactly why should Southern Europe remain in the Euro? So the North can dictate their sovereignty? Won’t last for long.
Gold still in Denial?
The traditional gold promoters are out in force claiming manipulation. Then there is the authoritative good one: sell offs like this take place when gold stocks drop sharply. These are all excuses as to why they were WRONG and never once ever say sell. This is just salesmanship – not analysis that is ever rooted in non-biased research.
A manipulation involves a single market – not a whole sector. I routinely warned clients when “they are back” to manipulate a particular market. With the Silver-Buffett rally, the inventories in NYC dropped sharply and they were out in force claiming silver would at last soar to $100 so rush and buy it. Of course they moved the silver to London. But they convinced thousands to rush in and buy it precisely from the banks at the top at $7. The banks get their orchestrated trade making their bonuses and fortune and the average person, forever trusting these promoters, lose their shirt every time.
Then there was the platinum rally. Boy you better hurry up and get in before there is none left. They paid bribes to Russian officials to recall the inventory and send it crashing down again after they pitched it to the public with all sincerity. They even did Rhodium. Come on – Solomon Brothers caught caught manipulating the US Treasury Auctions. What about the LIBOR scandal? Why are these charlatans always preaching BUY – BUY – BUY and never give a damn why they tell people and how many lives their hurt? Sounds like bankers to me.
There is always a TIME to BUY and a TIME to SELL! Forget this nonsense of buy and hold forever. Inventories peak at COMEX with the high in prices and decline with the drop in prices. Big deal! We are not looking at gold declining in isolation. That is a manipulation. When everything on the board is shifting, sorry, there is a trend shift there. We are trying to survive this global meltdown. That is what we must be concerned about. This is far bigger than just gold.
On the June Contract, gold reached 1404.2 and crashed thereafter unable to stay above the Weekly Breakline falling back to the Monthly at 1365 bottoming in the after noon at 1362.5. We got the pause at 17.2 days
Major Resistance is forming at 1477 level. We fell to 1321.5 coming close to the next reversal at 1310. Hold on to your hat. Volatility is about to return.