Train Wreck?

The train tunnel near Matsqui Village.


I am writing this on Sunday night, the 9th of May. After hearing and reading about the woes of the Greek economy, and how it could impact the Euro and ultimately the world economy, I await the market reports that I will hear first thing in the morning when my Clock Radio Alarm goes off. I do not hear anyone downplaying the seriousness of this issue. It is not news that the economies world wide are fragile and the reports of recovery are more spin than reality. This Greek disaster could tilt the world back to what has been called a recession, but in reality has been a depression. The most fascinating thing about this is that investors fly to safety in times of turmoil, and historically it has been the USD (US Dollar) that is perceived as the safest investment with gold following a close second. The irony here is that the US economy is in more serious trouble than the Greek economy! Deficit as percentage of GDP in Greece is 8% while in the USA it is 12%.
Imagine for a moment what will happen when the USD will no longer be seen as a safe haven. The next safest, and in actuality, THE safest, is gold and there will be an unprecedented run on it while the dollar dips, the Euro declines, and the DOW will fall like a rock. The price of gold will shoot upward. Have you got yours yet?