Post Greece Vote…what has changed?
We are now a week out from the infamous vote in Greece to decide whether they stayed in the Euro or left. What has changed? To be quite honest, nothing! Our markets continue to be very volatile, including gold and silver. The markets, especially the sovereign debt markets are getting hammered. Spain is on the brink of becoming Junk Bond status.
So what was all the fuss about with the Greece vote? In my opinion it really had all to do with the news cycle, and the MSM putting way too much emphasis on this one vote when there was never going to be any impact on the global Euro situation at all. I think most have already discounted the Greece debt and don’t really consider them a viable country. I believe that defacto they will, perhaps already have, left the euro.
As always for those of us outside of Greece, those folks are considerable screwed in so many ways, how will further issues/problems in the European community and the Euro affect us all?
In my opinion, there will be a gradual decline into chaos so to speak. The Central Banks will do only what they can and are used to doing-printing more money-and they will continue to call it adding liquidity. This influx of liquidity into the money supply will eventually lead us into an inflationary scenario.
Once this arrives, and it is anyone’s best guess as to will it hit the U.S. or Europe first, there will be a period of uncertainty. No one can really remember the last time we had inflation and this time around it will be quite different.
Some things that we use everyday, like food and gas, will skyrocket, while other ‘hard’ assets like real estate could very well remain in the doldrums-we will see on this one. The respective governments will consider and after much hemhawing inact price controls.
What happens after that one can study the history of such efforts in various countries and learn how those peoples reacted and i don’t think the people of today will behave much differently.
There are some tough times ahead, even tougher than what we are experiencing now….