The Eurozone Is Crumbling And Greece May Be Sacrificed
July 26, 2012
By James O'Dell
Los Angeles, CA. – Morgan Gold - Gold and Silver extended gains on Thursday with the price of Gold currently at $1,615.80 an ounce, and the price of Silver at $27.52 an ounce, after Mario Draghi, president of the European Central Bank (ECB), said the ECB will do whatever it takes to preserve the euro currency. Draghi even suggested the central bank may intervene in bond markets as yields have surged to unsustainable levels in Spain and Italy, threatening the very existence of the currency union.
“To the extent that the size of these sovereign premia, hamper the functioning of the monetary policy transmission channel, they come within our mandate,” Draghi said as he spoke at the Global Investment Conference in London on Thursday. “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” Draghi said, punctuating his statement with: “believe me, it will be enough.”
Gold quickly hit a three week high and financial markets surged on Draghi's comments. “We are getting improvement in the equity markets. Along with that, there is a healthy bounce in the euro. That is working to lift Gold, as the dollar is down about 60 (basis) points,” said Sterling Smith, of Citi Institutional Client Group.
Meanwhile, in Greece, international creditors began their review of Greece’s progress in reaching its fiscal targets as Greek political leaders struggle to agree on a 11.5 billion-euro package of budget cuts, aimed at securing 4.2 billion euros that were due last month as the first installment of a 31 billion-euro tranche payment. Greece may require a second debt restructuring in order to remain in the euro, said Norbert Barthle, spokesman for German Chancellor Merkel’s Christian Democratic Union party.
Citigroup has updated its forecast for a Greek departure from the common currency once again, from its last estimate of 75 percent it now stands at 90 percent, the chance that Greece will exit the euro within the next 12 to 18 months. “Sacrificing Greece will prove suicide for the euro area,” said former Greek finance minister, Evangelos Venizelos. Protect your wealth and your retirement, during these times of economic and geopolitical uncertainty, by investing in physical Gold and Silver bullion.
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