Spanish are Migrating to Germany for Welfare
Germany and its austerity policies that have been forced upon the rest of Europe with no sense of how to create economic growth for the future, is now experiencing a interesting side-effect of the Euro. They did create freedom of movement and the right to social benefits throughout Europe as a EU citizens. They did everything but consolidate the debts – just absolutely stupid. The number of people fleeing Spain with its high unemployment and no hope for the future headed to Germany is interesting. The Spanish migration to Germany has increased 45% year-over-year. This is how Europe is being torn apart by politicians who have their heads in the sand and are absolutely clueless regarding the consequences of their braindead ideas of how the economy functions.
Today’s Closings – Gold – Silver – Euro – Dow
In June Gold, a closing below 1439 will keep gold in a vulnerable position where support next week will be at the 1385-1400 level with still resistance at 1476 even becoming firmer.
In silver, the support lies at 2250. A daily closing beneath that will signal new lows ahead. The day of the high for the break is 26.045 and silver has been unable to rally to that area reaching 24.835 on April 26. A closing below 23.60 will also shift silver into a vulnerable position.
In the Euro cash, a closing today below 129.65 will warn that this currency is starting to weaken once again. Next week, the 130.00 level will be important. If we closing below 129.65, then expect this 130.00 level to become the first level of resistance with main resistance standing at 130.90.
The Dow Jones Industrial Index is still positive. On a weekly basis, support lies at the 14825 level on the cash level for next week. We nee a daily close below 14955 just to shift this index into a neutral position. Only a breach of the 14800 level would imply a sustainable correction short-term.