The results of US and EU bailouts manifest in Mass Protests, the first Mass Strikes in the USA for Decades, a London Suburb where We The People gave a little taste of what is to come when they loose it, Mass Demonstrations and Clashes in Greece, Spain, Italy, and there is more to come in 2012.
True, Occupy Wall Street and similar Manifestations in Europe are Trojan Horses, but they are an undeniable signal, indicating the fact that a large segment of otherwise well conditioned, placid populations have had so much of it that they are willing to get out into the streets and actually freeze and risk confronting the new Western Militarized Police Forces that would have left Orwell in astonishment.
The Western Bailout model had some other pretty consequences too. The Dow Jones finished 2011 at 12.217,5 which equaled a Dow/Gold ratio of 7.8, and during the first month of 2012 alone the Dow surged another 3 % DowNwards. The “real value” of the US Stock Market will most likely be ending 2012 with having lost some 85 % of it´s real value. So much to the BailOut Model of the EUSA.
I suggest that investment in Zimbabwe is a much more sound proposition than dealing in BailOut markets. Contrary to EUSAS bailouts that literally rip off entire populations, including medium and small investors who try to save for their family or otium, Zimbabwe seems to implement the model of Comply or BUT OUT.
Zimbabwe´s BUT OUT MODEL is among other manifesting in the fact that “undercapitalized banks” have been shown the boot that will be butting them out unless they comply with the regulations of Zimbabwe´s banking sector.
Yesterday the Governor of Zimbabwe´s Reserve Bank, Governor Dr. Gideon Gono informed journalists, and the banking sector, that there would be no other dead-line than the one already set at two weeks. By February 14 all undercapitalized banks should finalize their ongoing initiatives to meet minimum requirements, suggesting that some of the banks could merge, as he had advised before.
In other incidents share holders would need to dilute their stake to inject fresh funds to save banks, instead of clinging to their shareholding.
The banks most likely to be confronted with Dr. Gono´s and Zimbabwe´s BUT OUT BOOT are Royal, ZABG and Genesis Investment Bank. Zimbabwe´s Finance Minister Tendai Biti advised that share holders should consider if it was wise to hold on to old ownership structures, and then to go under with a 100 % shareholding.
Comparing Zimbabwe´s sound BUT OUT MODEL, I would suggest that investing in Zimbabwe is a far more sound idea than investing at a drug and drug money dependent Wall Street, where the gamble is about whether one is luck to invest in one of the crime cartels that are too big to fail – and even if one is lucky enough to win that gamble, one is assured that ones stock will be loosing 85 % of it´s real value during 2012 ?
Bailout ? Or But OUT !!! It´s Your Funeral so You decide for Yourselves. I know where I would be investing my money. Considering the Dow/Gold Ratio and the fact that we can expect the real value of EUSA´s stocks to loose 85 % in 2012, I´d invest in Gold, and keep a good part of it, safely at a Bank in Zimbabwe.
Dr. Christof Lehmann
01.02.2012