![\"\"](\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2011\/10\/new_initiatives_wont_solve_europes_debt_crisis-460x307.jpg\" "\\"Europes_Debt_Crisis\\"")
![\"\"](\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2011\/10\/Eurozone.jpg\" "\\"Eurozone\\"")
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Dear PGM CAPITAL<\/strong> Blog readers, Currently the head of state of the 27 European Nations are meeting in Brussels, their 21st<\/sup> meeting in 14 month, on the issue of the Greece Debt Crisis.<\/p>\n The purpose of the current meeting is to draft a debt rescue package that could be sent to EU heads of state for signature.<\/p>\n The estimated size of the package is around US$1 trillion, with some experts calculating the final cost of the European sovereign debt bailout will run US$2 trillion or more.<\/p>\n On top of this the issue of how big of a haircut will be allowed to holders of Greece Government Bonds. We and with us most investors are watching this very closely because this might be become a model for handling the Debt issue of the other PIGGIIS and also the USA debt issue in the future.<\/p>\n Pain & Gain for Investors: We strongly believe that, the USA-Treasuries and those of most Western Countries currently are in a bubble. Chances are that the hard lesson of Greek Government Bond Holders might be the trigger for a flee out of bonds.<\/p>\n Those most hurt in this case will be retirees, whose pension- and social security funds are heavily invested in (Government) Bonds.<\/p>\n On the other-hand, the printed bail-out money dilute the value of paper Fiat-Money and will let Gold, precious metals and other commodities, shine like they have never shined before. Mining stocks due to their leverage effect, will shine even more.<\/p>\n Our preferred mining stock in this case is world biggest and most diversified mining company BHP Billiton Ltd (ISIN AU000000BHP4). Due to this we believe that the recent correction in the prices of Gold, precious metals, other commodities, and the stocks of their producers, have given (long term) investors a great entry point.<\/p>\n Last be but not least, before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities as well as the stocks of their producers can be very\u00a0volatile and that sharp corrections might happen in the short term.<\/p>\n Yours sincerely<\/p>\n Eric Panneflek Dear PGM CAPITAL Blog readers, Since May of this year, Europe, the Euro-zone and the European Debt crisis are the headline of almost every news media on the planet. Currently the head of state of the 27 European Nations are meeting in Brussels, their 21st meeting in 14 month, on the issue of the Greece[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8,10,19,12,14,42,15,16,1,17,18],"tags":[],"class_list":["post-5403","post","type-post","status-publish","format-standard","hentry","category-commodities","category-debt-crisis","category-eric-panneflek","category-financial-news","category-inflation","category-pension-crisis","category-pension-fund","category-pgm-capital","category-precious-metal","category-uncategorized","category-us-dollar","category-world-economic-outlook"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/5403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=5403"}],"version-history":[{"count":0,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/5403\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=5403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=5403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=5403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nSince May of this year, Europe, the Euro-zone and the European Debt crisis are the headline of almost every news media on the planet.<\/p>\n
\nGermany is backing a 60% write-down of Greek government bonds. France, because their banks have higher exposure to the Greek Government bond, is insisting on no more than 40%. All involved might see a compromise of 50% as a good \u201cSalomon solution\u201d.<\/p>\n
\n<\/strong>We wish and hope that Investors will learn a lesson, for the unavoidable hair-cut for Greek Government Bond holders, in the sense that Bonds aren\u2019t as safe and secure as the have been taught at school.<\/p>\n
\nChairman<\/p>\n","protected":false},"excerpt":{"rendered":"