Renowned Eurosceptic and British Euro MP Nigel Farage says saving the banks is why politicians are so determined to bail out Greece and keep it in the Eurozone. To listen to what he has to say please click this link: Euro.
Nigel is correct when talks about throwing good money after bad, right at the outset we were against the bailouts for the Northern Rock, Bank of Scotland and the other poor performers. Liquidity is not a cure for inepotitude or insolvency it is akin to giving a junkie another fix.
Meanwhile over at Reuters we have this snippet on the situation - Greek Prime Minister George Papandreou will name a new cabinet on Friday to muster support for painful economic reforms, despite public unrest and a split in his party that could push the country closer to debt default.
He is likely to jettison Finance Minister George Papaconstantinou, author of a belt-tightening program that has fueled public anger, national strikes and a violent demonstration this week on the steps of parliament.
Papandreou delayed announcement of the new team late on Thursday in what looked like a signal he was struggling to find a suitable person for the key financial post. The reshuffle will be announced at 9 a.m., the government said.
The political upheaval has pounded markets and drawn criticism from other European Union states, where policymakers dithered over how best to keep funding Greece and forestall a "credit event" that could cause global economic havoc.
China weighed in again on Friday, with Vice Foreign Minister Fu Ying saying it was "vitally important" Europe sorted out its debt mess. China's central
To us this situation is now in dire straights, for the northern Europeans to have to come to the rescue again could be the straw that breaks the camels back. The next two weeks are critical for the euro and as it slides we can expect its poor performance to over shadow that of the dollar. Should the inverse relationship of the dollar and gold remain intact then we would expect the progress of gold prices to remain some what muted.
We were anticipating a lackluster summer which would give us the time to do some more research as to where the bargains might be found come the fall, however, events may rob us of such a luxury.
Keep a tight grip of your core position as 'trouble' appears to be just around the corner.
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So, the question is: Are you going to make the decision to join us today.
Stay on your toes and have a good one.
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