Europe's Third World Future

 My view:

 An important video that succinctly explains the problem of the European Union.

The simple arithmetic is this:

Benefits of the Union         1.8% growth of GDP
Cost of regulations            6.0% of GDP

Net benefit to Europe       -4.2% of GDP 

Though today's new of a European overseer and bailing out the European banks of their poor lending decisions by purchases of Italian, Spanish, and other low grade sovereign bonds may delay a bond crisis, the tragic trajectory Europe is heading down threatens to collapse the entire financial system.

Europe's crisis has become all of our crisis.

I'm liking precious metals here more than ever and cash.

We may see a continuation of today's stock rally for a little while until it is realized that perhaps an additional $300 billion is needed to further prop up banks in Southern Europe, but that will be a crisis coming later.

I feel sorry for the average investor as they seem to be blissfully unaware of the carnage wreaking below the surface instigated by financial institutions and national governments.


  1. $300B is nothing,

    $5000B is closer to reality, maybe 20000B

  2. Independence Day 2012, How Ironic

    OK, no trading blog post, here goes a Quiz on the First Amendment to the Constitution of the United States of America.

    Take the Quiz Here, can you get 20 for 20? constitution.html

    There is also a Constitution quiz

    Can you find where they say separation of church and state?

  3. Happy 4th!
    All below are Word Docs, they are easy to find on the net, if you don't have Word.

    You can read all the docs below in less than 1 hour. Misinformation is rampant concerning these basic laws of the US. Read them, you will be really glad you did.

    Presented below are text versions from the Articles of Confederation 1777
    This is like the "Original Constitution"


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