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Tonight Eric Cantor, the House Majority Leader pulled out of the doomed discussions that Joe Biden has been trying to broker.  To those who can hear, a tiny golden canary has sung.

In the olden days, when men dug coal by hand, and they wanted to get warning of any forthcoming gas explosion, they took small sensitive birds down the mine.  One whiff of methane and the bird keeled over allowing the miners to get out the mine in time.  The bird of choice was a canary.

Today the mine is the economy, it is global and the miners are thee and me, and those furthest down the slope are the Greeks.

Next week the Greeks are going to vote on whether they wish to swallow unpalatable medicine foisted on them by the EU, the IMF, and Uncle Tom Cobley and all.  Now, if you believe that all this is going to work, that the economy will be saved, and the Euro saved, your job saved, your pension saved, then you might be minded to sit back and let it all happen leaving your savings sitting quietly in the bank or a Saving Account.

Or, if you don’t believe a word of what your Government, the EU, or the IMF tell you – wouldn’t you, too, shift your savings out the Bank smartish ahead of any horrible decision that the fools with the degrees have dreamt up now?  And, if you were shifting it where would you put them?  Not perhaps in the Euro certainly, but how about something else something strong, manly, reliable and able to withstand the storms ahead?  The rugged US dollar perhaps?  Maybe the strapping Pound Sterling?  How about the ever faithful Swiss Franc?

Not a bit of it.  All through Greece small individuals are ignoring the wisdom of the silly children running the economy, and heading for finance’s historical home.  They are buying gold.  Solid, reliable, utterly useless gold.  And they are buying it by the tonne.  Every day in May they were buying at least 700 gold bullion coins and that amount has rocketed in recent days.

Money is shifting out of Greek savings accounts ahead of next week’s decisions.  Some is going, as we might expect, to the close safety of Cyprus.  Some, if you are a posh doctor who hasn’t paid his taxes in years, might indeed go to Switzerland, but if you are a Greek peasant, well you can’t beat gold.  Wrapped up in a sock.  Tucked away safely under the bed, just like Granny did, way back in the War.

Do they know something Eric doesn’t?

It is some small comfort to note that the bullion of choice is the British Sovereign!

Copyright David Macadam 2011