silverdoctors.com / By AGXIIK / April 11, 2013
If 10 tons of gold tanks the market by $25, well then, I crap bigger than that. But it does make sense that any country that goes hat in hand to the troika must come bearing gifts….Gold is a good one.
Question: How much gold does Slovenia have? And Slovakia? Portugal? Italy? (2,400 tons). The Netherlands?
The beast is hungry and gold feeds its appetite. Small bites now, more later.
The contagion in the Eurozone is like hypothermia. If a person becomes severely hypothermic, and I’ve experienced that twice, the prescribed treatment is to warm the extremities very slowly. The vascular system shuts down in the extremities. The blood supply is reserved for the core and brain. If you warm the arms and legs by putting someone in warm or hot water, the blood’s pumped back into the core from the arms and legs. The blood in these extremities is still very cold, sometimes 50 degrees or lower. When the highly chilled blood hits the core the heart, lungs, and brain are hit with icy blood and can shut down or go into shock. This can cause death.
The thing that occurs to me is that the peripheral countries of the Eurozone are frozen; frozen out of the capital markets, with little capital flow inside the country. They are shut down.
If these countries start accepting bail ins, in a strange way they are temporarily revived by fresh capital infusions from the ECB. Their banking system that was formerly shut down restarts with a jolt of liquidity. They start to show some signs of life even though they are moribund.
But what happens is the smart money leaves, either before the bail in because that is what smart money does, or leaves during the bail in process. Smart money starts fleeing from countries before the bail in proposal ink is dry.
The smart money; call it the warmed blood, the money that gets out of a country’s banking system before it starts crashing, starts flowing towards the core.
This is happening now.