alert: gold lease rates double overnight, page-3

The other thought is that the LINOR rate spiked in anticipation of a perceived inflationary. Greece is given a stack of money to retire debt, more money printing. The continued increase in the Euro POG supports this notion.

But I counter that thought with the concept of 'unproductive debt'. This debt repayment is for accrued costs that are arguable unproductive - this underscored by the severe austerity measures taken on by the government. Retirement age now set at 67 NOT 53 etc. What a massive lifestyle change for Grecians.

So if the perception is inflation in the forseeable future, then it will be interesting to see what happens when Greece shows how difficult it is to increase productivity rates against the fiscal tightening.

Credit flows are aleady tightening in Greece as a consequence of the raing downgrade, adding further pressure on growth and productivity.

I see a period of deflationary forces not inflation in Europe. Within this context this should result in a drop in the POG - certainly in Euro's - but it may not should wealthy Europeans (e.g. Germans) flock to Gold as a safehaven.

There are so many angles here its hard to see the future. Looking forward to others opinions here.

GC