Posted on 11/19/2011 11:58:50 AM PST by blam
Right Now Officials In Brussels Are Threatening To Cross A Line That Will Set Off Panic
Bruce Krasting, My Take On Financial Events
Nov. 19, 2011, 10:10 AM
Image: flickr/ mariocutroneo
There are some folks in America who will wake up this morning and read that Jefferies has been sued for its role in a bond deal with MF Global and they will vote with their feet (Zero hedge Link). They will close their accounts with JEF and move to a safer address. That’s an example of capital flight.
There are people all over the globe who have looked at the rapid un-gluing of the financial system and have bought gold as a safe haven. That’s another example of capital flight.
Every time that something stupid crosses the tape from one of the EU deep thinkers the US bond market catches a bid. Yet another example of capital flight.
I could go on for a bit with this. There are dozens of examples. All around the globe one can find evidence that money is moving around with the sole purpose of finding someplace “safe”.
Capital flight is a perfectly logical consequence in today’s world. Barely a day passes where we are not reminded that nothing is safe any more. Not our currencies, not our equities, not our bonds and certainly not our banks/brokers.
In Greece there are many example where capital flight is undermining stability. The most obvious is the capital flight from the Greek banks that has taken place over the past few years. This flow of money is also perfectly logical. There are many risks of leaving money in a Greek bank:
-The Bank could default. There is no FDIC type of guarantee. The principal in the account is at risk.
(snip)
(Excerpt) Read more at businessinsider.com ...
Barney Frank, Chris Dodd, the liberal Democrats, and the “Community Reinvestment Act” - - the damage has scarcely begun.
In a post-meltdown world, deflation will rule. That could almost certainly reduce the currently high prices for precious metals. But how about currencies? I note with interest that only two “First World” nations have absolutely NO national debt: Taiwan and Singapore.
I’ll set aside Taiwan’s currency as too risky given the likelihood they’ll be the first target for the Mainland’s efforts to prevent rebellion in the wake of a financial implosion. But how does the Singapore dollar strike folks as a good place to store value?
Boy O Boy.
For a Greek,this means that your money is not your money after all.It belongs to the State.It’s things like this that fuel civil wars and political murders.
‘finding someplace “safe”. ‘
Ie: a “place” with a powerful military. If it wasn’t for our armed forces we’d be paying 5 to 6% on our bonds instead of 2%. When push comes to shove we can shove the hardest. So everyone wants US bonds.
Where can we buy stock in the black market? lol
I read those on a list of the safest...Singapore was on that list too.
Another one blaming “taxes” for the situation in Greece. Blaming the tax law that allows certain incomes to be untaxable is the problem?
While I agree with the idea of capital flight is the symptom...the author clearly sounds just like 0bama in demanding more taxes from those who were diligent enough to seek ‘safe havens.’
Taxes do not address the underlying problem with the Greek economy and socialist culture.
EU will create violent revolution. If Greeks cannot move money from weak banks to strong banks. Follow that with making gold ownership illegal. Then the Greek people will resort to violent revolution. Will EU isolate Greece and let her people starve. Talking about the EU desperately using Stalinist tactics to preserve or force Greeks to stay and pay off the bailout. NATO tanks rolling in to Greece to force wealth staying in Greece so the EU eventually will take it to pay for the bailout???!!!! Communism was the cause of slavery in the 20th Century. Now bank loans will be the cause of slavery and military repression in the 21st Century. Wow!!!! What a new world order??!!!
The amount, by EMU rules (I hesitate to say 'by law', ahem...), of guarantee on demand deposits was, last I looked, €90,000 per depositor. I do not know about any multiple account provisions.
Guess it's not just Athenian mom-and-pop stores banking in Switzerland these days, eh? I wonder how much the Papandreou family have stashed away...
My friend has been buying gobs of gold and silver (mainly jewelery) at garage sales. Remember that Kyle Bass bought 20 million nickels too.
-——the technocrats in Brussels are trying to institute capital controls.-——
They will fail. In effect, they attempting to at best close the barn door after the horses are gone and whereabouts are unknown. Someone said they are down by the river but no one knows for sure and rounding up lose horses from a wheelchair is hard
True. Gold and silver would be tradable in a depression but if the crap hits the fan bad enough it could become just another piece of metal. Of course, if that happened we won’t be worrying a lot about it.
That's why most of my precious metal are contained in legal currency. Silver dollars, dimes, quarters, etc...Krugerrands, Pandas and etc.
A hole in the ground is a good place for it too.
I love the place but it isn't easy for an American to move money there. Canada might be the better option.
The Current FReepathon Pays For The Current Quarters Expenses?
I guess when civilization re-establishes itself, someday, it’ll still be there.
Time to call the game...
A “United States of Europe” was never going to be successful. Every American, in every state, is an American- one flag, one language (resilient,in spite of attempts to change that), one culture, one history.
The EU, in spite of its best efforts, is comprised of 27 nations, with their own language, history and culture. Each nation is sovereign, the citizens nationalistic. The euro, falsely inflated beyond its value, never could succeed in the face of 27 ideas on how to manage it.
Abolish the EU and the euro before it drags everyone down with the flush.
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