Like little children returning to the safety of home in tears when they had been warned not to stray:
“The Frankfurter Allgemeine Sonntagszeitung (FAS) reported that Bundesbank reserves — including foreign currency and gold — would be used to increase Germany’s contribution to the crisis fund, the European Financial Stability Facility (EFSF) by more than 15 billion euros ($20 billion).”
Just to be clear. The fund in question is that very pool of dosh that European authorities wish to leverage to 1 Trillion despite being unable to even raise 3 Billion last week in direct bond sales. And, by the way, this is exactly the strategy that lead to the fist derivative crisis in 2007 amongst other things; crisis that is still simmering because instead of deconstructing the derivative pyramid, the authorities actually expanded it;
Be that as it may. So what do you do when your shiny newfangled currency no longer commands a shred of confidence or respect? Why, you return to the only form of true money that has existed for millennia. That very money the authorities have discouraged the public from holding in an attempt at propping up a monetary system that is predatory… but that, thankfully, is limited mathematically…
Trouble is, that when monetary systems fail, war is never too distant in time…
Till today I believed that as democratic tools available to society in order to bring about desirable change were being progressively withdrawn, simply by hindering the expansion of credit markets the people could force radical political change. As of today, that strategy may no longer suffice. Today, the only peaceful and legal strategy option left for society in order to make its voice heard is to quit our respective countries in the West in favor of alternative countries not directly under the control of the West… and there are precious few.
The fact that public officials should now openly be seeking the acquisition of gold heralds a new chapter for the economy thus for politics, thus for society.
For the rest of us, I hope you are flexible because the best advise I can give comes in the form of that immortal suggestion to: “place your head between your legs and….”