Real Wealth #261 06/04/2010
Now Hungary: Sovereign Credit-Default Nightmare Spreads
The growing danger of the European Sovereign Credit-Defaults
are spreading and as a result credit-default swaps on sovereign bonds surged to
a record thanks to worsening situation in
The cost of insuring against losses on Hungarian sovereign debt rose sharply
by 63 basis points to 371, according to CMA DataVision at 3:30 p.m. in
Meanwhile the Euro has broken below the key support level of 122. Keep in
mind while the Euro has been dropping, gold has been holding steadily actually
up $10 today as I write the Real Wealth column. Gold’s resilience in the face
of climbing dollar is symptomatic of the underlying problem which is – Things
are not getting much better here in the
Over the past few years I have beat the warning drums alerting you to the danger of a monetary collapse. My critics argue it can’t happen. Faced with a worldwide economic collapse the Federal Reserve and Central banks of the world will print money and provide an environment that will feed broad economic growth. In fact that’s the road we have been traveling already for the past two to three years. The problem of course, if the economic nightmare worsens instead of improving, dramatically increasing the money supply becomes a crisis in itself – the risk of a worldwide monetary crisis increases.
In its defense in recent months the Federal Reserve has withdrawn about 7%
of the money it injected into the system, so its clear Bernanke understands the
dangers. He and the Federal Reserve may be forced by the expanding Sovereign
debt crisis in
If you’re not holding at least 15% of your investment portfolio in physical gold
you’re in my opinion great danger. For
more information on gold please call TOLL FREE 1-866-697-4653. Remember you CAN put physical gold in your self directed IRA.
Finally, my options advisory service (Gold and Energy Options Trader) is up almost 400% cumulatively this year. We made a recommendation yesterday that’s already up sharply. Every day you’re not a subscriber it is costing you money. This volatile market is perfect for options traders. Go to www.GoldandEnergyoptionsTrader.com for more information.
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