The European economy is on the verge of collapse.  Gold rose on news that Euro zone finance ministers will help bailout Spain’s banks, lending 100 billion Euros ($125 billion).
This helped strengthen the Euro and riskier assets and hurt the Dollar. But the results are only temporary, since the real problem is not even being addressed. The loan to
Spain will bring the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are included. EU politicians are again attempting to portray Spain's €100 billion 'bailout' as a victory, which it is NOT. Their efforts are like sticking a finger in the dike to hold back the ocean. It is merely a stop gap measure; it will do nothing to strengthen the dike as absolutely nothing has been done to n address the causes that brought the Euro zone to its knees. Risk has again been shifted from insolvent banks to increasingly insolvent sovereigns. While equities have rallied, the robust gold price is an indication that average market participants remain dubious.

Greece is ready to pull the plug on the Euro and when it does, Europe's façade crumbles, pulling down the rest of the world's equity markets. And you don't want to get caught unprepared when that fast-moving freefall begins, so what you need to do right now is protect your wealth. The next, most dangerous phase of Europe's debt crisis could begin at any time -- and Greece's exit of the Euro could provide the spark. However Greece’s problem is small enough that it can still be papered over for a while, but Spain and Italy’s problems are much too large to continually be papered over. 

WHAT COULD HAPPEN NEXT

Everything that Bernanke has said in the last seven or eight years has been either a lie or is something that he has been dead wrong on.  In point of fact, he has never been right about anything and that is not an understatement. The man has zero credibility for anyone who would take the time to look at his track record. He passes himself off as being a financial expert on the Depression, but how can he be when he doesn’t even have the real facts right. All he does is parrot the left wing clap trap.

The U.S. Dollar is an instrument for hyper-inflation, bond fraud, big bank largesse and endless war. Foreigners have begun to organize against the abused, corrupted global reserve currency. American citizens seem oblivious to what is happening; distracted by all manner of silly name calling, placing of BLAME based on false facts and other political lies and do nothing topics.   

“The U.S. is also on an unsustainable and dangerous fiscal trajectory. The country’s DEBT will very shortly lead to some form of major duress like, higher inflation, a long period of poor growth, and most likely a serious financial and economic crisis.” Robert Rubin” and “Dr. Aubie Baltin”
 

GOLD vs US DOLLAR

In 1936, when the country was in the grip of the Great Depression, you could buy a very nice suit -- pants, vest, and jacket -- for $36. Gold was selling for $36 an ounce then, so
an ounce of gold would have bought you a very nice suit 76 years ago. Today, you can barely buy a swimsuit for $36. But an ounce of gold -- currently worth about $1,600 -- buys you a 3-piece Armani suit. Paper money changes with the wind. But gold stands up to the test of time.  That's why if you want to preserve your wealth and stay ahead of Washington’s machinations, you must invest in gold and/or Silver.

GREECE, SPAIN and the REST of THE EURO COUNTRIES

A wave of withdrawals by depositors - either for fear that their government is too weak to stand behind its banks or that their country will exit the Euro and forcibly convert their savings into a vastly devalued national currency - would represent a crisis of completely new proportions.  Greece’s exit and reversion to their national currency, the Drachma, could precipitate massive electronic bank runs, as is already happening in other periphery nations. The risk is that even the savers who may still trust their bank as being safe, come to the conclusion that there is a risk that their Euro deposits may, in the event of a sovereign crisis, be forcibly converted to Drachmas, Pesetas, Liras, Punts
or Escudos.

THE WORLDS POLITICIANS  ARE NOT READY TO ADMIT THAT THEY HAVE BEEN WRONG FOR THE LAST 60+ YEARS

Until they do, we cannot expect any workable solutions; but they will surely TRY. But Try What? MORE OF THE SAME, which is an attempt to paper over the problem by printing massive amounts of Fiat money and we all know that will only make THINGS WORSE.