Gold hits a record price in Euro

Gold has hit a new historical record in Euro. The price of 1380 Euros per ounce marks the accelerating inflation in EU. Officially the price index is at 2,7% level. But Gold has gone more than 10% up for a year that is much more realistic indicator for the inflation. Statistics administrations in all EU are government dependent and obviously are part of the strategy to allow money print in an effort to fight the debt crisis. With 2% inflation limit and 2,7% official inflation, ECB is in break of its own rules. But if the inflation reaches 5% or the measured by Gold price level of over 10%, then the ECB will be simply blocked of ability to react. Inflation fears will end the low-interest era and bond-buying programs. That is why it is incredible to believe that any statistics administration will recognize the real inflation.

But for the common people the real inflation is important. The Gold price demonstrates the obvious fact that people are being taxed via the vile inflation tax. Prices are going up and this brings more taxes in state's budgets. On the other side the expenses remain the same or even are going down due to austerity measures. This way the public deficit goes down, thanks to devalued money.

In fact if you had Euros a year ago and have not received at least 10% interest on your savings so part of your money have been stolen by the Government. In EU it is very rear to find bank interests on Euro-deposits, of over 2-3%. So savings are being stolen.

Gold is only a measurement instrument. Along with it are all prices. Most of them, and more important ones are also in up-trend. Energy and food is up. Pressed by artificial low interests even hosing prices will soon start rising initiating a new bubble.

And it is not so far away the time when salaries will have to go up, under the workers pressure for inflation compensations. The well-known inflation spiral follows.

Gold price rise is a good signal to awake from the enchanting...

Dobri
04.10.2012

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