Greek Prime Minister Tsipras will be meeting German Chancellor Angela Merkel in Brussels on Thursday, one day ahead of the scheduled meeting with EU finance ministers to determine what hope, if any is left in averting a Greek exit.
After ordering state entities on Monday to turn cash over to the central bank, opposition parties and local government officials are threatening to take legal action. Constantinos Agorastos, head of the Greek prefectures union said the new government promised not to touch that money and yet they are taking it. Agorastos believes total cash reserves of local government bodies is around 1.5 billion euros.
Greece’s largest labor union said in a strongly worded statement referring to the fund for future generations, “Don’t even think about it.” The fund has cash reserves of about 3.5 billion euros.
The new government is defending its actions stating the decision was, “necessary to raise the liquidity of the Greek state. Athens is grasping at straws as it struggles to find a way around the almost 1 billion euro payment due the International Monetary Fund in May.
Not to be left out of the fray, Russia continues frustrating EU efforts as it plays the role of defender in coming to Greece’s rescue, maybe. According to Gazprom CEO, following his meeting with Tsipras, Russia will guarantee 47BCM/YR of gas via Greece with the link to be built by a Russian-European group at a cost of around 2 billion Euros.
Russia, the nation that was going to pay for its endeavors into the Ukraine by suffering U.S. and EU sanctions is obviously better at playing poker than its counterparts. From day one, Russia has countered every sanction with a checkmate and now finds itself in the position of possibly owning Greece’s NATO vote. If the gas deal goes through, Russia will extend the Blue Stream gas line to Austria and preserve its dominance over the European energy market. Checkmate again!
Russia is back in gold and big time as the Russian central bank said it added 1 million ounces of gold to its inventories in March bringing totals to 39.8 million ounces. This is the largest rise since last last September when the bank added 1.2 million ounces.
If sanctions were designed to harm the Russian economy, someone needs to notify Washington that it’s having the opposite effect, unless your’e one of the impoverished EU nations that is actually bearing the brunt of economic losses. If the second World War proved anything, it’s that Russia won’t back down to those looking to control her, especially not American’s.
The Ruble has rebounded almost 24 percent from it’s low point against the U.S. dollar in February demonstrating Russia’s economic resilience.
Russia is the fifth largest holder of gold in the world and the metal accounts for 13 percent of its total foreign reserves.
According to the World Gold Council, central banks will purchase at least 400 tons of gold this year. Why waste all these resources on such a “barbaric relic?” The answer is obvious; in the war being fought between global central banks for currency dominance, paper money isn’t worth the cotton it takes to produce it.
As JP Morgan famously stated before the U.S. Congress in 1912, “Money is gold, nothing else.”
Sooner or later, we have to arrive at the conclusion that rigged markets and endless money printing can’t go on forever. This being the case, only we can make the decision to protect our wealth with assets that have a proven track record, or stay the “stock market” course.
Call Gold Goliath to begin the process of protecting assets while they’re still “your” assets. 1-800-577-3195
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