As a Financial Sense article offers up “A Golden Solution to a Global Crisis,” the Gold and Silver Blog, pointing out that U.S. stock markets have shrugged off a rash of recent apocalyptic economic predictions, even though they’re “coming from some of the most normally sedate institutions in the world such as the IMF and the World Bank,” asks, “Exactly what is going on? The answer is positive for both stocks and gold. The ‘collective wisdom’ of the markets saw a resolution to the imminent threat of the European debt crisis last fall, and that resolution is known as quantitative easing.
As previously noted in this blog last December, ‘Every Solution to the Euro Crisis Involves Printing Money,’ which is exactly what happened. Both the European Central Bank (ECB) and the Federal Reserve stand ready to print whatever quantity of money is required to paper over the European and U.S. debt crisis. Long term this does little to solve Europe’s fundamental problems, but is short term bullish for stocks and extremely long-term bullish for gold and silver.”