Gold Price Skyrocketing As Financial Doomsday Arrives Per Jim Rogers

July 15, 2012 - PRLog -- Following hours of negotiating, European policymakers agreed that the bloc’s bailout fund, better recognized 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 individual does not see it as joyfully…

Ever-skeptical investor Jim Rogers told reporters that the move does absolutely 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 really is not solving the problem, this really is making the issue worse,” Rogers stated. With the U.S. government attempting to inflate its way out of debt by electronically making whatever cash is essential to pay the bills undermines the value of the national currency. U.S. government bond holders run the danger of being paid back in worthless dollars. Of course, any Americans who have savings will see the purchasing power of their dollars plummet also. Discover more now http://silver-dollar-values.com

Negotiations lasted all through the night and finalized the agreement that these banks could be in a position to have cash lent to them to recapitalize without expanding a country’s spending 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 danger assets like oil. And Rogers believes that the surge won’t last however the advocate of commodities-based investing doesn't hedge away from his joy that the commodities jumped a bit these days after the news.

“I personal commodities, I’m delighted they are going up today-they are going up a lot. [But] I’m not jumping into some thing.”

Summit leaders also agreed that euro region rescue funds could also be utilized to stabilize bond markets with out forcing nations that comply with EU spending budget guidelines to adopt additional austerity measures or monetary reforms.
Countries such as Spain and Italy have been burdened with sky-high borrowing costs - levels noticed 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 does not enhance 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” could be a perfectly acceptable outcome if it meant that governments had been to quit rescuing these failing banks. Uncover the most inexpensive life insurance rates on the web! You will find no hidden payments. Good luck has brought you to the website where you discover the really ... http://www.termlifeinsurancequotes.be

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

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

“What are you going to do in two, 3, 4 years when the marketplace suddenly says ‘no more money’ and also the Germans do not have more cash and the American debt has gone through the roof?” When the European officials truly took a moment to look in the numbers and trends, which happen throughout occasions of policy, alter and see that they're not a answer but rather just a temporary fix, maybe issues could alter and Rogers sees it like this…

“How many occasions has this occurred in the last 3 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 could be to buy gold now while the gold price is very inexpensive. Silver bullion silver dollars are a great bet also! The monetary function of gold that has been established and manifested over the past centuries is presently being re-discovered. For centuries, gold has represented consistency of value, independence, and stability. Gold is the only asset that is not according to a contractual agreement among a creditor along with a debtor. It's the only supranational, internationally accepted means of payment, and has survived each war and every national bankruptcy. This has yet been confirmed once more amid the current turmoil, and we expect this tendency to last all through a minimum of the coming 5 years. Discover more now http://www.silver-dollar-values.com