Are the markets going crazy?

Today most of markets skyrocketed after the ECB Chairman Marion Draghi promised to do everything needed to save the Euro. He also added that high interest rates on government debts in Europe are a bad thing.

 After these words, the Euro gained against the dollar and a rally started at Stock Exchanges.

 But is the financial world going mad? This is a celebration of another promise for uncontrollable money-print. Why markets are celebrating this - a new creation of fiat money without any coverage.

 I always has thought that a real economy progress and a real increase in production of goods and services is to be celebrated. Why the markets are so happy with just an increase of money supply?

 Printing money is not an answer to the crisis. It is just another problem in the crisis. Celebrating this is a symptom of ill mind.

 If we dream of higher oil and fuel prices and for $8 or even $10 per gallon, then the Draghi promise is welcome and inspiring for us. But if we prefer saving our wealth, or increasing it in real value, then the Draghi words are nothing else than a nightmare. The only right reaction to it is selling everything and buying gold. Very soon if such promises continue, there will be no any market remaining live on Earth. And only the real physical precious metals will remain as money...

Isn't the one celebrating money-print crazy...

July 26th 2012

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