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Posted 02/09/2012 8:25 pm
Quote:
To me silver has shown a very strong gain and ability to go higher after everyone had given it up for dead last month.
To me silver has shown a very strong gain and ability to go higher after everyone had given it up for dead last month.
Hey... *I'm* someone and I haven't given it up for dead... not even when it pulled back to $26!
As to the European problems and their effect on PMs, THE problem as I see it is that none of these stop-gap band-aid fixes for debt problems addresses the cause of the problem... spending more than they earn. Yes, they can put off the day of reckoning by arranging for additional loans to pay off the current interest that is now due, but... so what? This is like a doc giving a cancer patient some aspirin and saying, "There you go, that will fix your headache". Maybe it will but it does zip to fix their biggest and worst problem!
The simple truth of the situation is that a number of European countries, aka The PIIGS, have borrowed and spent more money than they can ever pay back. They desperately need to declare bankruptcy, renege on their debts, and THEN get their financial house in order for the future. True, they could not borrow any more money after that, unless they pay VERY high interest rates to get it, but so what? It was borrowing too much money that got them into this mess in the 1st place. If they can avoid that, no matter how the issue is forced, they will be much better off in the future. "Live within your means" is a golden rule in finance. Individuals MUST adhere to this if they want to be financially successful, but then so do nations. The sooner more of them realize this the better off we will all be.
The US has huge problems in this very same area and the sooner we get our financial house in order the better off we will all be. There is no future when one is in the grip of unpayable debt. If we want our kids and grand kids to even have a future, we simply MUST do this. Yes, it WILL be painful but there is no longer any other choice available to us. The time for that has been well and truly squandered via all that can kicking nonsense.
