(From left) José Manuel Barroso, European Commission president, Angela Merkel, George Papandreou, Nicolas Sarkozy and Herman Van Rompuy
The financial markets are hanging by a thread as they await the outcome of the 22nd emergency summit of the European Union. A single positive statement by a lone Eurocrat can lift the DOW by 250 points, conversely a denial can send it tumbling down again. The suggestions to remedy the economic woes of the euro zone vary from modifications around the periphery to grandiose schemes borrowed from fairy land.
The first thing we need to do is understand is the difference between real aims and stated aims. The stated aims are those of which the Eurocrats talk about, however, their real aim is to stay on the gravy train, keep that lucrative job, the endless expenses, the first class travel and the gold plated pension, etc.
With this in mind we can see that the departure of any sovereign state from the EU is unacceptable as their empire would shrink and other countries may well follow them out of the union. So, in order to prevent Greece from leaving the fold they will do everything they possibly can to keep the union intact, whether its good for Greece or not. The presumption is that if they can manage Greece they can then prevent contagion. This is not quite so, as we all know the PIIGS are in real trouble with Italy's Prime Minister, Silvio Berlusconi, compiling a 'Letter of Intent' with regard to the new austerity measures proposed for Italy.
The summit currently in progress is tasked with just how do they find the large amount of money required to support the combined debts of these nations, the broad strategy is to boost the bailout fund accompanied with debt reductions, deferred payments, bank-recapitalization plans, hair cuts, more creative buzz words and of course, a serious dose of austerity for the populace.
The citizens are already rioting, such is their displeasure, so a new source of revenue will have to be found. That's easy, they will revert to the printing press and create enough capital to see us through until the next crisis, which will probably be next month.
This massive undertaking is in the hands of a small group of civil servants, some of the important players are shown in the above photograph.
Now ask yourself, do you trust these Eurocrats to deliver, of course not. They have well and truly blown it and the fallout will effect every citizen in the Eurozone via increased taxation, reduced benefits, regulatory controls, the continued debasement of the euro, etc.
We now need to prepare for a very tough decade and a standard of living so low that right now it is unimaginable. Our stance on these issues has not changed and our strategy remains unaltered.
First of all acquire both physical gold and silver and keep it in your hands, do not trust others with your financial future, take possession.
Secondly, if you are that way inclined, acquire a small number of quality gold and silver producers, this step requires work on your part, so find the time and do the due diligence, after all it is your hard earned cash that will be on the line.
Finally, if you are confident in your own assessment of the metals space, a few well thought out options trades may provide you with the leverage to the metals that not all the stocks can provide at the moment.
However, the speed of change is accelerating and how we position ourselves will require a fairly constant review of our holdings in order to survive and indeed prosper in the hard times ahead.
Regarding www.skoptionstrading.com. We currently have a number of open trades at the moment however, we do not update the charts until the trade is closed and the cash is back in our account.
Our model portfolio is up 407.38% since inception
An annualized return of 113.83%
Average return per trade of 42.43%
86 closed trades, 83 closed at a profit
Average trade open for 45.85 days
So, the question is: Are you going to make the decision to join us today.
Stay on your toes and have a good one.
Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.
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