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Not to kick a man when he is down, but the news about institutions, depositors and finally money market funds getting rid of Euros have been piling up. US funds have been cutting exposure to both European banks as well as PIIGS debt. Even a German holiday company (TUI) started preparing for a Euro pull-out. Warren Buffet thinks the EU cannot be saved in its current form and Soros has been a hater all along.
The latest meme in this train-wreck is that PIIGS under pressure in the bond-market should offer gold as their collateral! If it worked for India in the 90’s, it should work for Europe in the 10’s, yeah? Even though I was ten at that time, I still remember the popular outrage when India shipped 47 tons of gold to England. What a reversal of fortunes it would be if Europe were forced to ship their gold to China. Italy holds about 2,400 tons of gold in its vaults, I hope the Chinese have built a big enough room to hold all that metal.
