Take the Money and Run

Monday, November 14, 2011

Irish finance expert Eddie Hobbs appeared on Irish TV on 11/11/11 and paints a compelling picture that the Euro is toast. His advice: Take the money (out of the bank) and run. I would add: Convert your paper savings into gold.
Watch this 6-minute video for a complete overview of the last stage of the Euro currency.

Austrian Central Bank Strikes Exotic Deal with PBoC While Entangled in Alleged Kickback Scandal

Friday, November 11, 2011

Austria's central bank, Oesterreichische Nationalbank (OeNB) delivers headlines ranging from opaque to criminal these days.
Market observers scratch their heads about a secretive agreement between the OeNB and the People's Bank of China (PBoC) that makes Austria the first non-Asian country permitted to engage in Renminbi investments with its Chinese counterpart as the intermediary. Further media inquiries were stonewalled.

Wikileaks: Merkel Hid Reality of Greek Debt Situation From Her People in 2010

Wednesday, November 09, 2011

A newly released cable from the German US embassy from February 2010 proves again that Eurozone leaders were happy to hide the full dimension of the Greek debt crisis and its implications for the German budget deficit as long as possible.
The confidential document published by Wikileaks again highlights the fact that politicians prefer to lie until the last possible moment.
This snippet says it all:
Chancellor Merkel is clearly relieved she does not, for now, have to explain to the public why the German government is running up its own deficit to bail out debt-laden Greece.
Here is the full text of the confidential cable:

The True Intrinsic Value of Euro 'Money'

Tuesday, November 08, 2011

Ever wondered about the true intrinsic value of Euro banknotes?
Prudent Investor blog reader Kurt Lindlgruber from Austria sent me this pragmatic approach, pulling up the calorific value of such notes once they have lost their purchasing power as did all fiat currencies in history.
Lindlgruber's calculations contradict French philosopher Voltaire's famous quote that
'Paper money will always return to its intrinsic value. Nothing.'
It is not all that bad. Your soon-to-be worthless Euros will at least keep you warm for a few minutes.
Here is his calculation:
The minimum value of paper money after the Euro crash corresponds with its calorific value.
A €5 banknote weighs 0.6 grams. The calorific value of one kilogram European fiat money (= 1,667 €5 notes) is 5 kilowatt hours (kWh).
You can fare much better with gold:
Based on Monday's Euro gold price of €1,260/oz one ounce will buy you 21 metric tons of wastepaper (current price €60/ton) which has a calorific value of 105,000 kilowatt hours.
The average heat energy consumption of a single family detached house is around 5 kWh. So 21 tons will heat a house for 21,000 hours or 2.4 years.
If you hold on to your Euros instead of gold, 252 €5 notes (=€1,260), they will deliver a calorific value of 0.76 kWh
(252 x 0.6 x 5 / 1000 = 0.76 kWh) 
will keep you warm for a mere 9 minutes instead of 2.4 years.

Wikinvest Wire