OTCQX:BGMZF - Post by User
Comment by
RedHorizonon Jun 07, 2012 5:00am
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Post# 19988295
RE: RE: RE: RE: RE: RE: news June 6, 2012
RE: RE: RE: RE: RE: RE: news June 6, 2012
What if we get big QE from Europe? It seems unavoidable to me. If they keep Greece and Spain in the Euro they will need to do another LTRO or some other form of QE to bail them out.
If they let Greece and Spain leave, then they will need to bailout the banks who have loaned money to Greece and Spain who will not be repaid in Euros, but in the new currencies which will be worth much less. So it appears that there will need to be huge bailouts funded by QE one way or the other. And Italy is also in desperate shape and they're next on the list.
Unless the politicians permit a deflationary collapse, we will be seeing significantly more QE and that should lead to a higher gold price.
If that happens, we may just get a repeat of 2009-2010 in the gold juniors.
GLTA