Wednesday, August 12, 2015

"I Haven't Lost any Conviction" on Gold and Silver

I have always thought that the ECB (European Central Bank) would persist in coming up with some kind of solution, because they had just under $89 billion euros in the Greek banking system and we were theoretically only talking about lending another $7.2 billion to Greece to solve the problem.

But that has gone way up in the meantime, like most estimates that countries make on the size of their difficulties.

When I look at the proposals, it just is a total wipeout for Greece. For the love of me, I can’t understand why their parliament would pass that.

I mean, the ECB is seizing $50 billion in assets. It almost looks like they want to run the banking system in the country, if not effectively run the country itself! All the reporting mechanisms go to the ECB.

I can’t believe that Tsipras would have won the “no” vote (against the bailout) and then had that happen to him.

I have always believed that Greece would have been better off just reneging on the debt because there’s no way in the world that the ECB can honestly expect to be paid back.

So we will see what happens in the Greek parliament. But I think Greece would be better with an exit and debt repudiation. With what they theoretically agreed to, it is going to be very, very difficult for the Greeks and the country to survive in that environment.

So we will see how that plays out as events unfold. Even other governments within the ECB might reject it. So there are still a lot of acts to be played.