The panic for CDS sovereign protection is continuing this morning and investors take solace in the US$ and US Treasuries. Quite ironic of course since statistically the finances of the US government if local and state governments are included aren’t much different than Greece but investors have their late ’08, early ’09 playbook out where everything is sold and money is parked in US dollars. If sovereign debt concerns spiral, it will be gold that will be the last man standing in a fiat currency world and while I understand the short term psychology of investors to sell it along with all other commodities, the reason for its ownership only rises in the current environment.
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