Friend of mine just got back from Europe…he’s married to a woman who’s from Spain and they went back to visit the in-laws. Had a nice trip, but he related a story to me that was pretty interesting. It involved the behavior of his Spanish in-laws.
He said it was a bit weird. Apparently, mom and dad followed everyone around turning off all the lights. And not just in a casual, “Don’t forget the lights,” sort of way…They kept the whole place as dark as they could as often as they could. Ate in the dark, (dimly lit by natural light only) cleaned in the dark, played with the kids in the dark…all because electricity had increased in price by more than 300% in the last couple years. Austerity has been imposed and they are freaking out…
So Spain is the next country in the line of hat-in-hand beggars who’ll soon approach the ECB to beg for a reduction in their debt load and an injection of capital so that they can implement and maintain their entitlement lifestyle…
The in-laws in Spain have apparently been milking the system for decades. Mom took disability at 45 or 50 and has been drawing a government check for a couple decades…my friend and his wife (who’s a citizen of Spain) received 8000 Euros when their first child was born and 6000 for the second little girl…and that welfare state will soon crash.
A road paved in gold leads to poverty…who said that? Oh, I did. Just now. Or at least I wrote it… you can’t sponge off the government forever and the southern states of Europe have been doing just that for so long now, they simply can’t recover.
Borrowing rates are through the roof in Spain…approaching 7% – which is the magic break-off point where banks start to leave you for dead. Precious metals are looking better and better as an investment…the hyper-inflation is coming.
Good Luck, Spain…see you after the austerity… this newly imposed austerity will slow the economies of China’s biggest consumers (the US and Eurozone) even further and force the injection of greater and greater amounts of liquidity the the Fed and the ECB…might be a great time to buy gold at Houston Gold Merchants, because I’m pretty sure we’re going to see some hyper inflation pretty soon. ItThe price of gold is only going to go up from here…The United States is doing the same thing southern Europe is doing- borrowing, borrowing, borrowing – financing the lifestyle we “deserve”…it’s coming. Auto loans and loans for automotive based heavy machinery are as easy to get as home mortgages were five years ago. Gotta pulse? No problem…It’s all happening again.