Gold Surges

Nothing like the smell of a fresh Eurozone (thank you Greece!) crisis in the air, to remind everyone that in an insolvent world, where every counterparty is suddenly once again suspect (and collateral-free), there is only one asset class that has no counterparty risk (although the distinction between paper and physical gold is still a far too complicated lesson for most) - gold.

And headlines like this:

  • VENIZELOS SAYS GREECE, PASOK PARTY DON'T WANT ELECTIONS

but with the following caveats:

  • VENIZELOS SAYS PASOK DOESN'T FEAR ELECTIONS
  • VENIZELOS REPEATS CALL FOR MEETING OF COALITION LEADERS

won't help.

It would be greatly ironic if it the Greeks took three years of humiliation by the Eurozone largely stoically if with the occasional riot, but it will be the cancellation of public TV that breaks the Eurozone camel's back.