The European Debt Crisis Rattles American Business

[No DUplicitous DUpe]

The European Debt Crisis Rattles American Business
posted with permission from: http://sane-ramblings.blogspot.com/2009/12/european-debt-crisis-rattles-american.html

The so called five "PIIGS," Portugal, Ireland, Italy, Greece and Spain have run up enormous deficits they can't afford and are in serious financial trouble. But why should you care if you're not a citizen of one of those nations?

Because your economy depends on it. U.S. businesses for example, are counting on selling sizable amounts of products and services in Europe and the U.S. government is desperate for European cash to help fund its out of control deficits.

The Euro Zone must confront this crisis quickly before it gets worse. The most likely approach will be for the stronger countries to offer a bailout by channeling resources to the International Monetary Fund (IMF). But every European nation has problems and they may not commit those resources to bailout others.

But assuming there are enough resources for a bailout, to get the IMF money, these troubled nations will have to get their finances in order by dramatically slashing their spending and aggressively raising taxes. This could trigger widespread protests from their citizens and potentially even riots.

Elsewhere in Europe the situation is growing worse. Austria just nationalized one of their troubled banks and may have to nationalize another. The Baltic states, and Ukraine and Hungary also face financial peril.

And as America tries to spend its way out of a deepening Recession by using money it doesn't have, its deficits are also soaring. What we're confronted with is a domino effect in which one after the next could topple.

As a result, please be very conservative in how you spend your money. And if you can afford it, buy a few small gold coins, which are highly likely to hold value in the event your paper money loses much of its worth.

It turns out, it is a small world after all and what happens to your brethren overseas affects to you.

[Romulox]

1. This OP is recommending people buy gold at record high prices??? Unrec.

[No DUplicitous DUpe]

2. He gave the same advice in April, when gold was trading at $800....

And he does not believe the problems have been resolved.

I invite you to read "Your money is in peril" which he published in April, here:

http://sane-ramblings.blogspot.com/2009/04/your-money-is-in-peril.html

Thank you for your comment. A kick is always better than a rec.

[Romulox]

3. Right. That was before gold climbed to record high prices.

Thanks for at least being honest that this is one of those gold shilling things. :hi:

[No DUplicitous DUpe]

4. I don't think the advice is because he thinks gold is going way up...

...just that it has a more stable value than the dollar, if his predictions prove correct. And if he is not correct, you still won't loose your shirt.

[No DUplicitous DUpe]

5. The author responds to your point...

We don't recommend gold coins because we're trying to make money on the price. We buy them as a store of value in case the dollar does a belly flop....Whether it's the coming fall in commercial real estate values or the European debt markets being shaken to their core, we're informing and explaining info readers en masse should know....It's not a sexy like Tiger Woods' story, nor the hot button health care "reform" issue, nor an attack on conservatives, nor any other kind of rant but it is what will profoundly hit the well being of the American public.

[Ikonoklast]

6. So, he's the only gold shill not trying to make a buck off the suckers.

Right.

All the idjits are running towards gold just as the dollar is strenghtening and those at the top of the run-up have been selling into the strength.

The little guys will buy in at the top, as they always do.

[SOCALS]

7. Do they give you actual

gold bullion or some kind of certificate? And how much will it cost you to store your gold at a bank?