Capital has been fleeing a collapsing economy created by a combination of excessive debts and austerity. This combination has created a deflationary depression in Spain.
Individuals and corporations either not subject to or able to circumvent the new capital control laws continue to withdrawal funds from Europe in the face of growing uncertainty and economic stagnation.
Buying gold for Spanish citizens is not a matter of diversification but rather financial survival. Capital fleeing Europe should continue pushing up US stocks to bullish extremes (chart). Caution towards stocks will be warranted only after statistical extremes have been reached in the coming months/years.
Chart: Dow Jones Industrial Average (DJIA) and Z Scores of Secular Trends
Headline: Shell looks to pull some cash from Europe due to crisis: report
(Reuters) - Royal Dutch Shell (RDSa.L) is pulling some of its funds out of European banks over fears stirred by the euro zone's mounting debt crisis, The Times reported on Monday.Source: reuters.com
The company's chief financial officer Simon Henry told the newspaper that Shell is cutting back its exposure to European credit risk in the worst-hit economies and putting a higher price on doing business with the region's peripheral nations.
"There's been a shift in our willingness to take credit risk in Europe. The crisis has impacted our willingness to afford credit," Henry is quoted as saying.
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