Today the man who first predicted Greek bank deposits would be stolen warned King World News that when the theft of Greece's bank deposits actually takes place it is going to send shockwaves around the world! He also discussed what has the central planners worried ahead of the coming financial crisis.
James Turk: "We have another battle on our hands in the precious metals markets, Eric. Gold is again bumping up against resistance in the $1,225 area. Gold slipped below that price in mid-February and since then has been battling to hurdle back above it….
Continue reading the James Turk interview below…
"Gold twice probed $1,225 in March, and two more times in April. But like a resolute and determined soldier aiming to seize an objective, gold is again probing $1,225 here in May.
Central Planners Having A Hard Time Suppressing Gold Price
However, this time gold has already managed to briefly hurdle this level, but for the moment has been beaten back. Nevertheless, this time around the central planners are finding it more difficult to keep a lid on the gold price.
Given the resistance being placed around $1,225 and immediately above, it would not be unreasonable for gold to back-and-fill for a while. After all, look at what it has accomplished over the past two months. From a low of $1,142 in mid-March, gold is now knocking against its $1,225 nemesis. That’s a better than 7 percent gain in only two months.
Silver's Gain Even More Spectacular
Silver’s gain is even more spectacular. It has climbed over 15 percent since its March low at $15.30. Also, it is important to note that silver has broken through its resistance area that began around $17.25, which is a very positive development. Silver of late has been stronger than gold, which is usually a good sign. Silver normally leads when the precious metal bull markets resume an uptrend.
It is also important that the gold/silver ratio has dropped to 69.3. The ratio has not been under 70 since September, which indicates that the precious metals are pounding away at the barrier placed in their way by the central planners.
The Key Question
So we need to ask ourselves, Eric, are gold and silver finally ready to blow through resistance and run higher? We all know the reasons why they should rocket higher. And one of these days, they will. In this regard, I still think Greece will be the trigger.
EU, ECB And IMF Eyeing Greek Bank Deposits
The troika of the EU, ECB and IMF have not yet pulled the plug on the Greek banks, but the following quote in the Financial Times from this weekend should be a warning to anyone who still has money on deposit in that country: “The idea of a 'Cyprus-like' presentation to Greek authorities has gained traction among some eurozone finance ministers, according to one official involved in the talks.”
The ECB is up to its eyeballs swimming in unpayable Greek debt that it holds. The ECB is not going to take a loss on this Greek paper on its books. Because Greece does not have the financial capacity to repay what is now about €112 billion of credit exposure on the ECB’s books, the ECB has only two alternatives.
It can push the €112 billion of Greek debt it holds to the national central banks of the Eurozone and on to the backs of the taxpayers in those countries, which is politically untenable. Or it can confiscate depositor money in Greek banks, like it did in Cyprus and as the FT has now reported.
Theft Of Greek Bank Deposits To Send Shockwaves Around The World
The difference is that Greece presents a problem that is an order of magnitude bigger than Cyprus because of the huge debt it has outstanding. That means the shockwaves from a 'Cyprus-like' confiscation of bank deposits will reverberate throughout the Eurozone and far beyond because bank depositors in other countries will start asking, which country is next to confiscate bank deposits?" ***ALSO JUST RELEASED: 50-Year Veteran On Ray Dalio, The Shocking State Of The World And Mainstream Media Misinformation CLICK HERE.
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