The only logical solution to avoid a bond market crash to EU is very big QE program similar to US, think it might happen soon as bond market is saying no more lending.
Devalue Euro substantially in the process to attract manufacturing back to Europe & reverse deflationary environment, currency war between EU-US?
Only other long term solution to end a (multigenerational) depression is to have a total bond market collapse & start to rebuild from the bottom.
Even if Greek Parliament accepts EU conditions in 2 weeks, it will be against the wishes of the people & the more this happens the more radical elements will gain power. Remember it was the war debt & suppression of Germany after WW1 that got ol' shittelgruber (spelling) into power.
The same can be seen to occur in IRL, last election Sinn Fein got 12%, this is double the vote they have ever got in my lifetime. Should the main opposition fail to stand up to EU & Bond holders, then there is no major party left to vote for. Many migrants (eastern EU & African) in last decade dont understand political ramefication of voting in Gerry Adams & also many educated voters have emmigrated (no overseas voting) further adding to the swing.
What does this mean for the price of gold to make it all relevant: (a) bond market crash - gold will probably fall too (b) QE forever - gold goes balistic.
not knowing which is ahead is why I have always felt a hedge on gold prod for low grade in $1600 area would be sensible (even if we have to accept $100 less for the hedge)
Anyway that's just my skewed view of the world.
FML Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)