Little #finance 1on1 for today:
Is #France going to go bankrupt? No.
- Search for #EZB and OMT or SMP. These are two programs to affect government bond yields. These define the conditions for state debt refinancing.
EU governments don't reform their states (enough). The EZB can come in as a forcing factor, like for #greece . For France, that is unlikely, but France is going to get what it needs one way or another. French companies will continue. French people will eat and work.
Is there an EU debt crisis? No.
- The "debt" is ending up in the balance sheets of EU corporations. Take a look at the annual reports. Subsidies have an effect here.
So, why is everyone speaking about the crash?
- Maybe they get funded by the Mining Corsotiums. Gold (and Silver) are fear assets. Speaking about "the big crash" creates fear.
People buy fear assets because they think these assets are crash-safe. Today miners make a fortune. But neither Gold nor Silver _Futures_ are crash-safe. That little detail is often left out.
- The news is acting as an incentivizing function to push reforms. The problem is that EU politics is stagnant due to a combination of macro factors, including demographics.
What's in it for me?
- Don't act based on news. Learn about the banking system and its relation to government, politics, and the economy. Then decide to shift your #portfolio. Do not buy Futures because "they are crash-safe". They are not. Keep cool.