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Calvin Ball economics sounds funny. In fact I always thought that Calvin Ball with two rules was really cute.

1. There are no rules.

2. The score doesn't matter.

But in banking, laws matter. They matter a lot.

Europe has abridged the rules twice. Cyprus should be no surprise.

MF Global did not fail because the traders made bad bets, no MF Global failed because Europe changed the rules. It abridged the contracts that MF Global had by declaring that a default was not a default.

In Cyprus, they have declared that a loss is not a loss, it is a tax.

While there are some that will argue that 2 points does not make a trend, I am not so sanguine. I may sell my PT, while the company is good, and the Macro trend is good, if there is no rule of law, there is no such thing as a "security" not in bonds, and not in equities a least not in Europe.

Cheers
Qazulight
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...if there is no rule of law, there is no such thing as a "security" not in bonds, and not in equities a least not in Europe.

Somewhat in a similar vein I have been adding to my physical silver bullion lately. I know, I know, many consider the whole notion to be a paranoic redneck predilection! However, the latest purchases have been with a view to the notion that perhaps some fraudulent silver coins may be making their way into the markets. My latest manner of protecting myself from that particular con is to buy the silver from a silver mining company. First Majestic Silver has some nice items. I don't own their stock yet but tonight made my second purchase from them. The first purchase was the 18 0z. proof rounds which were delivered timely and looked far better than I expected. The latest purchase was for several rolls of the one oz. rounds.

For anyone interested, here is the site:
https://www.store.firstmajestic.com/

As far as an exit strategy....well that is a work in progress....I don't think the monetary abuses have yet reached the transformative stages, and until they do I can't really take the exit planning much further. I know I will sell one day, and I know I might keep some small mementos for nostalgia purposes. But this whole currency game seems to get more and more asymetrical with those that make the rules and the rest who have to lose by them. Cyprus is just the latest shot heard 'round the world.

Poz
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Somewhat in a similar vein I have been adding to my physical silver bullion lately. I know, I know, many consider the whole notion to be a paranoic redneck predilection!

http://boards.fool.com/buying-gold-and-silver-coins-27183002...
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https://www.store.firstmajestic.com/

Thanks Poz I was looking for a place like that. I Used to by from a place that minted coins in Kansas City years ago, forget the name of it. They are out of business now. Made coins with imprints of Friedrich Hayek on them and other "hard money" advocates.
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...if there is no rule of law, there is no such thing as a "security" not in bonds, and not in equities a least not in Europe.

Fiat currency itself is founded on two things: 1) full faith of the sovereign and 2) the rule of law.

So far, it doesn't look like either foundation is faring very well in the Euro zone.

Once people lose faith due to the sovereign's failure to observe the rule of law, it's only a matter of time before the people reject either the sovereign or the currency - or both.

:-o
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