UKIP Nigel Farage Oct 2010 - EU tax proposed on nations
While all eyes are on the United States of America and its difficulties with the G20, QE2, et al, the United States of Europe is showing signs of falling apart. As the European Union grows and grows the cost of membership for countries such as Britain increases at an exponential rate and civil unrest hits the streets as students invade the Conservative Party Head Quarters, smashing windows in an ugly protest about increased tuition fees.
Two years ago the United Kingdom were paying three billion pounds a year to the EU.
Now its six billion pounds a year
Next year it rises to eight billion pounds a year
the year after its ten billion pounds a year
by the year 2013 it will cost the Britain THIRTEEN billion pounds a year.
All as stated by Nigel Farage, an elected Member of the European Union which you can see on this video clip, please click here.
I guess they could always take a page out of Ben Bernanke's play book and electronically magic these billions out of thin air.
So, where does David Cameron, the British Prime Minister find such huge amounts of cash?
Amongst the many cuts and reforms that the coalition party have introduced in an attempt to balance the books an increase in fees for students attending university has hit a nerve. The fee per year now stands at three thousand pounds and will rise to nine thousand pounds per year. This comes at a time when Britain is reeling from the mess created by the previous administration and union leaders across the British Isles are cleaning their muskets.
London Riot: Tory HQ smashed by British students
One of the largest unions is the students union and they have wasted no time at all in expressing their anger and rage when they invaded the Conservative Party HQ in a not so peaceful demonstration as this video clip clearly shows, please click here.
With the PIGS (Portugal, Ireland, Greece and Spain) hanging in there by a thread with the support of the stronger members such as Germany, now isn't a good time for Britain to wobble economically. Sooner or later Germany will tire of picking up the tab for its financially delinquent neighbours and Britain will say enough is enough, as the social fabric of the country is tested to the limit. France has passed a law raising the retirement age by two years and they too are facing the anger of the unions whose ability to bring the country to a halt costs France millions.
The writing is on the wall as these cracks become crevasses and alternative measures are sort to alleviate the pain. Our opinion, for what it is worth, is that Germany will soon introduce its own currency to run alongside the euro. Not to hard to imagine as Britain still retains the pound. However, in a blink of an eye the new mark will become the only currency used in Germany as the euro is shunned.
In conclusion the race to the bottom in the currency donkey derby will continue with the added ingredient of some countries changing horses in order to avoid the 'A' word, Austerity. The voters simply will not tolerate much more in the way of hardship in an environment where the western world's standard of living is about to take a huge fall.
We regret that the world has come to this, but our political masters and their printing presses have set the stage for both silver and gold prices to rocket as a general distrust of the establishment gathers speed.
Brace yourself for eye watering volatility, days when gold prices will move in either direction, in the order of two hundred dollars per trading session and silver prices will move three dollars an ounce.
On the skoptionstrading front some of our 'stops' were triggered last week sending us back into cash with some good profits, we will update the chart on the skoptionstrading site this weekend.
The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.
So, the question is: Are you going to make the decision to join us today?
Stay on your toes and have a good one.
Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.