Greece Downgraded AGAIN

December 6, 2012

Greece is the crisis that won’t go away. The hapless nation’s economic and fiscal woes are really just a microcosm of what is facing the entire European Union. Debt levels are unsustainable, spending continues to be out of control and politicians attempt to place band aids on the problems, which will only make them worse in the long run.

Somewhere at the end of all this, Europe is going to be hit hard with an unprecedented economic and fiscal crisis.

Will it be touched off by a Greek default? Some observers think so. S&P has now downgraded the country’s credit rating to “selective default,” from the already lowly CCC rating.

A Greek default will not be kind to the financial markets. This is yet another crisis from which investors must protect their wealth with gold investments.

Greece

Advertisements

Europe gets closer to the brink

October 26, 2012

While all of the attention seems focused on the USA due to our presidential election, the world economy may be what matters most–and nothing that the next president of the United States can do will necessarily save the entire world from itself.

Take Europe as an example. Europe has been careening toward crisis for two years now. The European Union has repeatedly applied band aids in attempts to correct the underlying problems, but those band aids have never been enough.

Now we are in a situation where two of Europe’s problem nations, Spain and Greece, both have unemployment at over 25%. These are simply depression levels. And even supposedly, relatively healthy Britain now has unemployment at record levels.

In today’s interconnected, globalized economic and financial system, there is simply no way that the acute problems in Europe can be limited to Europe. Make no mistake, their presence will be felt here in the US, in our financial markets. Many US companies are dependent on overseas markets for sales of their goods and services. Others are dependent on overseas markets for equity ownership stakes.

The continuing European crisis is one which investors cannot ignore. They must diversify into assets that have historically performed well when other assets suffer. Gold investments are ideal for that purpose.

Spain Joblessness Reaches 25%

http://www.bloomberg.com/news/2012-10-26/spain-joblessness-breaches-25-adding-to-rescue-pressure.html

Greek Unemployment Rises Above 25%

http://www.fool.com/investing/general/2012/10/11/greek-unemployment-rises-above.aspx

UK Unemployment Hits All-Time High

http://www.telegraph.co.uk/finance/jobs/9614120/UK-employment-hits-all-time-high.html


Europe–Again

October 11, 2012

Just when many investors assumed that they could forget about Europe, news from across the Atlantic has cropped up again–and that news is not good.

The European Union has supposedly taken action to “solve” the fiscal, monetary and economic crises plaguing Spain and Greece, but the fact is, both countries are still in dire financial straits.

The unemployment report from Greece came in and fully 25% of Greece’s workforce is unemployed. There is only one word that can describe that sorry situation: DEPRESSION.

Meanwhile, in Spain, the news was no better.

Standard & Poor’s downgraded Spain’s credit rating two notches (again) to just one level above junk status. This will raise the cost of borrowing for Spain and is a reflection that past band aids put on by the European Union have not solved that nation’s problems.

What all this means to investors is that, though the financial world is oblivious now, it won’t be able to remain oblivious forever. And though right now investors are not seeking the safe haven of gold due to the European crisis, we can be sure that eventually they will.

It is best to accumulate safe havens BEFORE everyone else does!


What Would a Euro Collapse Mean for Investors?

August 13, 2012

Germany‘s largest news magazine has just published an important story on what is seen as the impending collapse of the euro.

Investors need to examine what this means for their portfolio.

First of all, you should not assume that because the euro is a European currency that the side effects of its collapse would be limited to Europe. In today’s globalized, interconnected world, finance moves literally at the speed of light. What happens 10,000 miles away may as well be next door.

As we have seen in the periodic flare ups of the ongoing economic and financial crisis in Europe, the initial beneficiary of weakness in the euro has been the US dollar. Should the euro collapse, the initial reaction would probably be similar. But this would be short-lived for two reasons:

1. Historically, currency crises benefit gold, which is a counterweight to the US dollar.

2. Those who flee the euro for the dollar will soon realize that the systemic and fundamental debt problems that have led to the euro’s demise also exist in the US–only worse. As a result, investors need to find alternative safe havens.

There is no silver lining for this cloud in terms of world stock markets. A collapse of the euro would send shockwaves across the oceans.

This is all the more reason why investors should seek to accumulate gold investments now, before a euro collapse.

http://www.spiegel.de/international/business/investors-preparting-for-collapse-of-the-euro-a-849747.html


The Contagion Set to Hit Germany–Hard

July 24, 2012

Germany is viewed as the bulwark for European economic health. While the rest of Europe, particularly Greece, Spain, Italy, Portugal and Ireland, has set the continent on a path to ruin through irresponsible welfare state policies, Germany has largely been viewed as the one responsible nation in the European Union.

Unfortunately, with that responsibility comes a heavy burden. Germany is increasingly being asked to provide the bailout money in the vain attempts to fix what ails Europe. Now, international investment and credit rating firms are beginning to see the impact of that burden. Not even Germany can carry all of Europe’s load by itself.

And, as a result, Moody’s Investor Services has changed its outlook for Germany to “negative,” the first step toward a credit downgrade. This is not to be taken lightly. AAA-rated investment nations are dropping like flies because they are in the uncomfortable position of having to save their irresponsible neighbors.

This situation is unsustainable and will eventually result in an unprecedented financial and economic crisis for which investors must be prepared.

Historically, gold investments have provided the most effective safe haven for investors in times of crisis. Today’s investors have the benefit of being able to act pro-actively and to begin accumulating gold investments before the crisis reaches a dangerous peak. Contact CoinTrader and find out more about the various alternatives available to gold investors.


Europe, Drought, Poverty, Recession All Weigh on Wall Street

July 23, 2012

The US stock market fell sharply today, mostly because of renewed worries coming out of Europe.

It now looks as if the $100 billion bank bailout package the European Union granted to Spain isn’t going to be enough and the fear is that a much larger, broader bailout of the country’s financial system will be required. Spain is not Greece. Spain has a much larger economy and a much larger banking system. Scraping together the money to fix Spain’s debt woes is a lot easier said than done. In fact, no one is certain that a bailout can or should be accomplished at all.

http://www.cnbc.com/id/48279904

Speaking of Greece, the old problem that was supposed to have been fixed is still very much of a problem. The bailout program that the European Union put together for Greece worked so well that now their Prime Minister is saying their economy is in a “Great Depression:”

http://www.telegraph.co.uk/finance/financialcrisis/9418656/Debt-crisis-Greek-economy-is-in-a-Great-Depression-says-Samaras.html

For now, the Dollar has been the beneficiary of the European trouble, but there are other indications that the dollar’s strength can’t last:

For example, the drought that we have reported on here twice before is getting worse, which means higher commodity prices ahead, pushing inflation fears higher, even as the economy stagnates:

http://www.nytimes.com/2012/07/20/science/earth/severe-drought-expected-to-worsen-across-the-nation.html?_r=3

And despite all the government spending over the past few years, all designed to stimulate the economy, the poverty rate in America is soaring, reaching levels not seen since LBJ originally launched the so-called “war on poverty:”

http://news.yahoo.com/us-poverty-track-rise-highest-since-1960s-112946547–finance.html?_esi=1

Meanwhile, disappointing earnings are pointing to a fast-aproaching recession in the US to go along with those higher food prices. STAGFLATION anyone?

http://www.cnbc.com/id/48259674

Experts expect that recession any time now. Nouriel Roubini says the US economy is going from bad to worse:

http://www.cnbc.com/id/48281577

Anyone who expects good things from the US dollar and stock market in these conditions is whistling past the graveyard. Diversification is the best defense and hard assets provide the best form of diversification.

 


Wall of Worry Extends from the USA to Europe

June 22, 2012

In the wake of yesterday’s serial downgrading of the world’s biggest banks, it is clear that the world economy and financial markets are entering a dangerous period for which investors must seek the protection and security of gold.

But we might add this morning that there are other items in the news that investors need to pay attention to. And these additional news items extend around the globe as well.

Starting right here in the USA, we have a news article about the bleak real estate market, which remains in a depression. (Yes, a depression.) We have been hearing from some real estate pundits for some time now that the real estate market is going to make a comeback. So far, there is no sign of it. In fact, as the article below mentions, the housing market just hit a fresh 15-year low. It seems to us that before the market can recover it must stop falling first.

http://blogs.smartmoney.com/advice/2012/06/21/5-housing-markets-where-renting-beats-owning/

There was a time when real estate was considered a suitable alternative investment for investors seeking diversification from stocks, bonds and cash. That just isn’t so any more. Real estate not only fell right along with the stock market back in the 2008 financial crisis, but it played a role in causing the bear market in stocks.

Investors seeking alternative assets need to look to true independent markets, such as rare coins and precious metals, which have historically had a low or even negative correlation with stocks.

Switching to conditions across the Atlantic Ocean, we have two news items which, while not pleasant, are issues that investors in the US ignore at their peril. Readers may recall that the markets breathed a sigh of relief at the results of the Greek elections last weekend. Greece often seems at the edge of the abyss, but also always seems to pull back at the last moment. Nevertheless, Greece is in anything but good condition. How bad are things in Greece?

Thousands of Greeks are lining up for food handouts in a scene reminiscent of the Great Depression:

http://www.dailymail.co.uk/news/article-2161651/Starving-Greeks-food-thousands-politicians-finally-form-coalition-government–long-last.html

It does very little good for the European Union to bail out the Greek government if the underlying economy in Greece is so bad that the people cannot feed themselves. The situation is not sustainable and is symbolic of the fact that, at the end of the day, no one really knows what to do to solve this building crisis. (Fortunately, there is something that individual investors can do and that’s to own gold. For centuries gold has endured every crisis known to man.)

To elaborate on the European theme, we were all greeted this morning with a stark warning from Italy, the next country in line with a debt crisis problem. Italy’s Prime Minister, Mario Monti says that there is only one week left to save the euro.

http://www.guardian.co.uk/business/2012/jun/22/mario-monti-week-save-eurozone

Every time it seems that policymakers claim that they have gotten their arms around the crisis in Europe, a new near-death experience comes along. Investors should have no confidence at all that there will be a positive outcome from all of this maneuvering. And don’t assume that America is insulated from the fallout. After all, yesterday, the biggest investment banks downgraded by Moody’s were American firms–all because of perceived vulnerability to the outcome of the European crisis.

Prepare ahead of time by accumulating a diversified portfolio of gold investments. Contact Coin Trader today.