Gold Price Surging As Financial Armageddon Arriving Per Jim Rogers

July 14, 2012 - PRLog -- Following hours of negotiating, European policymakers agreed that the bloc’s bailout fund, better known because the European Stability Mechanism (ESM) could be in a position to lend directly to recapitalize struggling banks. Following the news, the markets reacted happily in agreement. But one person doesn’t see it as joyfully…

Ever-skeptical investor Jim Rogers told reporters that the move does absolutely nothing to help resolve the region’s greatest issue of high debt levels.

“Just because now you have a method to get [the banks] to borrow even more money, this is not solving the problem, this is making the problem worse,” Rogers stated. With the U.S. government trying to inflate its way out of debt by electronically creating whatever
money is necessary to pay the bills undermines the value of the national currency. U.S.
government bond holders run the risk of being paid back in worthless dollars. Of course, any
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Negotiations lasted all through the night and finalized the agreement that these banks would be in a position to have money lent to them to recapitalize without growing a country’s spending budget deficit and with out preferential seniority status.

The market euphoria brought on by the news of the agreement by European officials surged the Asian stocks as while the euro and risk assets like oil. And Rogers believes that the surge won’t last but the advocate of commodities-based investing does not hedge away from his joy that the commodities jumped a bit these days after the news.

“I own commodities, I’m delighted they're going up today-they are going up a lot. [But] I’m not jumping into something.”

Summit leaders also agreed that euro area rescue funds could also be used to stabilize bond markets with out forcing nations that comply with EU budget rules to adopt extra austerity measures or financial reforms.
Countries such as Spain and Italy have been burdened with sky-high borrowing costs - levels seen as unsustainable for governments in the long term.

But even with nations such as Spain having such outrageous borrowing costs, Rogers feels this new deal doesn't improve the solvency of its indebted nation. Clearly some have begun to forget that Spain’s central government spending budget deficit soared to 3.41% of GDP in the first 5 months of 2012. The EU limit is 3%.

He went on to say that “financial Armageddon” would be a perfectly acceptable outcome if it meant that governments were to stop rescuing these failing banks. Discover the most inexpensive life insurance rates on the internet! There are no hidden payments. Good luck has brought you to the site where you find the really ... http://www.termlifeinsurancequotes.be

“What would make me very excited is if a few individuals went bankrupt or perhaps a couple of individuals started paying off their debt. We are going to have monetary Armageddon anyways, when the rest of the world is not going to provide these people any more cash.”

Rogers presents the concept of a monetary dooms day as being somewhat near, asking the question that no one seems to be considering…

“What are you going to do in two, 3, 4 years when the market suddenly says ‘no more money’ and also the Germans don’t have more money and the American debt has gone through the roof?”
When the European officials really took a moment to look at the numbers and trends, which occur during times of policy, alter and see that they're not a solution but rather just a temporary fix, maybe issues could change and Rogers sees it like this…

“How many times has this happened in the last three years - they (EU leaders) have had a meeting, the markets have rallied, two days later the marketplace says wait a minute this does not resolve the problem.” My recommendation would be to purchase gold now while the gold price is very affordable. Silver bullion silver dollars are a great bet also! The monetary role of gold that has been established and manifested over the past centuries is currently being re-discovered. For centuries, gold has represented consistency of value, independence, and stability. Gold is the only asset that is not based on a contractual agreement between a creditor and a debtor. It is the only supranational, internationally accepted means of payment, and has survived every war and every national bankruptcy. This has yet been proven again amid the current turmoil, and we expect this tendency to last throughout at least the coming 5 years. Learn more now http://www.silver-dollar-values.com