Image courtesy of Kitco:
Once again, the central planners have ridden in on their white horse to the rescue with 720 billion Euros of borrowed money in their back pocket.
This time it is not the US Fed "saving" the banking system with 700 billion dollars, but the "EuroFeds" of Europe "saving us" from a Sovereign debt crisis.
It remains to be seen whether the market will buy into this next ponzi scheme.
Gold seems to be telling us that it is no longer a believer. Certain central banks, seem to indicate they have converted to new faith in Specie rather than Fiat money (think of China, Russia, and India).
However, fraudulent systems can last longer than we expect, so I do not anticipate a severe melt down until this winter at the earliest.
In fact I will go out on a limb here and choose the later part of March 2011 as "collapse date". At a later date we will outline why, in my view, this is an important time frame.