Gold is often brought up as the solution to some of Europe’s problems. Sell the gold! If you take a look at this chart, you’ll find that if they sold all their gold, it couldn’t put a dent in the problem.
Take a look at the percentage of debt. Read here: WSJ
European Central Bank president Mario Draghi says there’s “no external savior” for heavily indebted governments in the 17-nation eurozone and gave no indication the bank is ready to step in and support their finances. Investors were hoping the banks would come to their salvation.
Draghi said nations need to take the tough steps to balance budgets and reform economies to promote growth.
In Berlin today, Draghi said, “I will never be tired of saying that the first response ought to emanate from the country. There is no external savior for a country that doesn’t want to save itself.” He also said the bailout is the firewall.
Draghi is opposed to Quantitative Easing and pointed out that the countries which have implemented QE have not shown “stellar” performance. Many bankers, politicians and economists support Draghi.
Should the euro collapse, what would happen to the US? Amerman has a grim outlook, after a brief uptick, we can expect a downturn in every sector. Read here: Daniel Amerman