Friday, March 22, 2013

Gold/Reserves...


Article
; Gold Heads for Biggest Weekly Rise in 4 months on Cyprus    
Comment;

Gold is a good bet for Cyprus because inflation is low around 2%. Real returns will be high. Since money is fleeing from the economy we need a base. Banks should also invest in gold. The international credibility of an economy rest on it in case nobody is accepting your currency. Why? Because, nobody is accepting it for their goods and services. It is a big problem, A problem which even India faces. Nobody accepts Rupees they accept Dollars. Moreover international institutions like IMF also accept gold when you have noting to oblige them.


Article;
 Cyprus to Vote on New Plan Europe Skeptical    
Comment;


If the Cypriot Government had invested some of its reveue in gold or had a reserve of euro the economy would not have been in this embarrassing situation. Any union should guarantee stability not destroy it. Why only the Central Banks need to maintain the Stability-Funds?

No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...