Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

How to Protect Your Wealth from the Greek Debt Crisis Calamity

Stock-Markets / Financial Markets 2010 May 05, 2010 - 07:59 AM GMT

By: Claus_Vogt


Best Financial Markets Analysis ArticleThe Greek government is bankrupt. Simply put: It has systematically spent much more than it could afford. Now the inevitable day of reckoning has arrived.

A 110-billion euro bailout package by other European governments and the IMF has been announced. But can this political rescue solve Greece’s underlying problems?

It’s Not a Liquidity Crisis, It’s a Solvency Crisis …

As was the case with the subprime crisis and the banks caught in a debt trap of their own making, Greece’s massive debt is not a liquidity problem; it’s a solvency problem! And a bailout package cannot solve a solvency problem.

However, the money will flow only if the Greek government adopts 30 billion euros worth of austerity measures that include slashing public-sector wages, cutting pensions, freezing public- and private-sector pay and liberalizing Greece’s labor laws.

Of course Greek officials have promised their EU colleagues they’ll make the radical reforms …

Riots have broken out over the tough sacrifices Greeks have been asked to make.
Riots have broken out over the tough sacrifices Greeks have been asked to make.

But the people of Greece are vehemently against these cuts, which isn’t a surprise. They’ve been told for years — no decades — that government debt doesn’t matter, that Keynesian deficit spending is a solution to any crisis. It’s even a sure road to prosperity! And now, all of a sudden, they’re supposed to start spending less?

Frankly, I don’t see it happening. And I don’t think anyone else does either.

So Let’s Play Kick the Can …

Do EU politicians and the IMF bureaucrats believe they can rescue Greece? Hardly. They’re just buying time for the euro, their 11-year old common currency, and the broader European Union.

After the 16 euro-region finance ministers met in Brussels on Sunday, European Central Bank President Jean-Claude Trichet said Greece’s plan will “help to restore confidence and safeguard financial stability in the euro area.”

But they know very well that Greece is not alone. It’s just a bit ahead of the pack.

Portugal, Spain, and Italy are ultimately facing the same possibility of bankruptcy. That’s also true for Japan, the UK and the U.S.

Policymakers around the world know it, too. So the only thing they dare do is kick the can down the road! Somebody else, somewhere in the future — hopefully in the distant future — will take care of the bigger, solvency problem.

For the shorter-term,

They Already Told You How They’ll Deal with It …

Fed Chairman Bernanke has made his pro-inflationary policy loud and clear.
Fed Chairman Bernanke has made his pro-inflationary policy loud and clear.

The politically easiest way is with inflation.

Just think about what Ben Bernanke said during a speech before the National Economists Club in Washington, D.C., on November 21, 2002:

“But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Since then Bernanke has delivered on many of the inflationary promises he made in that speech. Therefore I take his words seriously. And you should, too.

What would President Obama — or a future president — do if a situation like Greece’s rears its ugly head in the U.S.?

Implement a strict austerity policy? Cut spending dramatically and raise taxes accordingly? Commit political suicide?

No way, as far as I’m concerned.

Greece is just a harbinger of what’s to come. And when the time does come, governments all over the world will shift their printing presses into high gear to alleviate the pressure coming from decades of living beyond their means. That’s why in the longer term I expect the bond markets to crumble.

Historically, though, one asset has been used to protect investors’ wealth against unsound monetary and fiscal policies: Gold. And if you look at the chart below, you’ll see why I say gold’s secular bull market has a long way to go.

Gold Chart

Best wishes,


This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules