Gold Tumbles Into Bear Market On Concern Greece May Leave Eu

Problem with those mean old grumpy bears strait out of hibernation, they wanna claw you back down....

You mess with my girlfriend she will CLEARLY tell you you mess with the bull you will get the horns....

The G@S market could sure use a couple horns up days just to settle the masses an calm morale perhaps. Maybe it is that two month sideways line, proceeded by what seems like a never ending fall. To be honest, I can't recall two good days in a row for the Pm world since early new year seems like....

For now I am not gonna worry about the bull market, an just buy up when I can in the bear market, but guess what I am out a job, so shafted either way, lol....

Just like Pinky an the Brain, back to the ol drawing board eh.....

coinwatch,

I know what you mean. It may make more sense to wait and see where things settle than use the typically wise standby of dollar cost averaging at the moment. I believe we have a ways to go before hitting bedrock. Maybe as low as $21-23, even. Of course, if I'm right, we can expect a dead cat bounce somewhere in there to get people thinking we've found the bottom; but I feel it's bull hunting season and the bears have all the ammo.

I personally am enjoying this slide in silver. I try and buy 6-8 ounces a week, if I can find them during these price dips. But then again I am not buying to make a quick buck either. Been buying Ag since 2001 so I have stoked a nice pile of cheap silver over the years. But since 2009 I have accumulated as much over these last 4 years as I would have bought in almost any 6 month period between 01 and 09. I'll keep buying as price drops, but at this point I don't think I want to see the days of $170 tubes of ASE's again either.

Now dont bite my head off or anything, but I personally do not like the EU. Otherwise, the EU is like a Jenga game. If you pull one out, the whole thing comes crashing down. So folks, get ready for Greek Drachami's, French Francs, Spanish Pesetas, Italian lires, and Polish Groshen in the next 3 years or so. :P

Back in the 80s someone suggested taking the US dollar and the Japanese yen and creating a new "dollen" currency. It's probably a good thing that never happened.

So... If Greece pulls out of the EU, does this mean they can no longer use the Euro and have to start minting their own coins again?

Does it? Remember that the Chinese do not have any kind of ethics drummed into them when they are young. Building trust with such people would be difficult and dangerous. Remember, Hawk, that these are some of the "the ends justifies the means" crowd and they do not much care what means are used to achieve their ends.



Well, now that her body IS dead, would this be workable? No, probably not. The average Brit probably thinks that the UK has enough troubles of its own without adding any from the PIIGS or others who want to leach off of their treasury.



Yes, it means exactly that and a lot more. Among them: 1) it will become difficult and expensive for Greece to borrow any money for a long time; 2) their bonds and all other financial instruments that were denominated in euros are probably null and void; and 3) if they want to trade with any countries still in the EU, they will have to first convert their drachmas into US dollars or perhaps euros and who knows what the exchange rate will be for that.

IMHO, the bottom line is this... Greece leaving the EU will be the very best thing possible for the Greek people but the worst thing possible for the EU bankers. Personally, I am rooting for the Greek people and not the bankers.

When the USSR collapsed, there wasn't a lot of fanfare about it as I recall. A few years afterwards, Russia and the newly liberated countries that resulted from the break-up of the USSR seemed to be doing pretty well for themselves. This is a way to repudiate debt, reorganize their finances, and get on with their lives without being saddled forever with a debt that cannot be paid. In that regard it is no different from a company going bankrupt, although it is usually on a MUCH larger scale.

The challenge with the Euro is that it is very difficult to have a single common currency without any common economic policy or standards between the member nations. In the old days, if the Greeks spent too much, the drachma would weaken relative to the German mark or British pound and you'd need more drachmas to buy goods from England or Germany. Although a weak currency is generally a bad thing, it is a way to reduce debt burden and so the system would self balance itself. Greeks would get high inflation and a lower standard of living in exchange for reducing the real value of their debt. In other words, if the Greeks messed up, it mainly affected Greece and those who lent them money.

Now, with the Euro, the exchange rate can't change and Greece gets "stuck" with debt that it cannot pay off and cannot inflate away. This then creates a cascading effect that affects all economies tied to the Euro. For example, Germany doesn't want a weak Euro (relative to the dollar or pound) but this is exactly what Greece needs. Something has got to break somewhere and I am thinking it is going to be a little ugly.