... the reality that the state is not in fact here for your protection as it once was and that we all need to take on self-reliance and a heightened sense of responsibility for ourselves. Some notable rule changes of late are subtle but growing in number:
- The ECB, holders of Athens-law and foreign law Greek debt all received different treatment
- The Dutch didn’t restructure SNS Reaal paper, they confiscated it
- The Irish banned lawsuits against the ultimate wind-down of Anglo Irish
- Portuguese private pensions were confiscated
The list is long but you get the idea. Rule-changes are getting ‘regressively’ more creative and sinister ... as if the football referee has gone from being a quasi-neutral arbiter, to pulling off his black shirt to reveal a Manchester United one underneath and awarding himself a series of penalties.Then, in comments under yesterday's post, Anon directed us to this story - our old friends Gazprom offering to bail out Cyprus ! Such a neat solution, eh ? I have long suggested that, when the chips are finally down, we'll find ourselves delivered to the Chinese, and it looks as though we might be in for a small-scale rehearsal of this approach. [Though in this instance, presumably the Cypriots will simply use it to get more out of the Troika - one Russian-sounding rescue package vs another ...]
(b) Bullion as Hedge: the other day I suggested that bullion might work as a currency hedge (not an original thought, I know) and this is another theme developed in the Hinde piece - with graphs to make the point that gold has worked well for Sterling and Yen investors. Strongly recommend you take a look: if we are all being forced to take that heightened sense of responsibility for ourselves, the more perspectives the better.