Tuesday, May 8, 2012

Turk - Gold & Silver Bottoming as Euro Troubles Reemerge

"They have run out of money and run out of borrowing capacity. Most lending to governments comes from banks buying their government's bonds. But banking problems are worsening as the European economy, already in recession, slides deeper under water.

I think these election results highlight a growing friction between taxpayers and tax-eaters and indicate a couple of things, Eric. First, there is an unrealistic view in Europe that by soaking the rich, the tax-eaters can continue to strap on the government-feedbag to pay for their socialist policies.

Second, a lot of people simply do not understand that many of the promises made by politicians are going to be broken because they simply cannot be afforded. They will be broken in either of two ways and neither alternative has a happy outcome."

- James Turk, via a recent King World News interview: