Updated 6-19-15 – Gold is holding steady in Friday a.m. trading with concerns over a possible Greek default as no deal has been reached. There are trillions of dollars in derivatives at stake that could possibly take down several big banks creating global market chaos if Greece exits the EU. Gold last reported is $1202.80 and silver is $16.11.
Fed Chair Janet Yellen gave “gold bugs” hope when she stated, “that the Fed will remain highly accommodative, even if it does raise interest rates this year. Yellen said, while the economy continues to improve, much progress is needed before the Fed changes its “easy money” course. As always, Wall Street rallied on the news just as it has since 2008 when the Fed began pumping the stock market. In other words, all is well in the land of make believe as Americans best hopes remain in part-time, poverty level jobs.
Meanwhile, 93 million Americans remain unemployed as Washington and the media tout U.S. economic success.
European stock markets were pressured again on Thursday as concerns increase over a possible Greek default as it cannot meet its debt obligations to the European Union and International Monetary Fund without first receiving the funds to do so, from the EU and IMF. Debt negotiations continue breaking down as neither side is willing to admit defeat. Greece’s central bank on Wednesday warned of an “uncontrollable crisis” if a deal is not reached soon. Greek government officials will meet directly with EU officials Thursday to work on another, “last-minute deal.” German Chancellor Angela Merkel said Thursday a deal is still possible as sometimes the proverbial “blind squirrel sometimes finds the golden acorn.”
Greek depositors pulled out an estimated 2 billion euros out of banks since Tuesday preparing for the unknown. Greeks have been pulling funds from banks since late October with withdrawals intensifying as current talks collapsed this past weekend in Brussels.
Greece faces a 1.6 billion euro bill to the IMF on June 30 that it is not expected to be able to pay without a deal with its creditors.
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