Posted on 01/06/2012 3:10:12 PM PST by DeaconBenjamin
The uncertain financial markets and the euro crisis have left many Germans feeling nervous.
Franz Herrmann, head of the German Association of Savers (BDS), is convinced that he'd lost money and cancelled his insurance policies, while the small interest earnings from his remaining savings accounts were "eaten up by inflation." To fight back, Herrmann formed the BDS. Now he makes appearances around the country, warning of "money-destroying instruments." He's certain that saving is "state-sanctioned robbery."
Becoming poorer by saving? Savings and fixed deposit accounts yield pathetic interest earnings, and the never-ending euro crisis feeds fears of inflation or even a currency devaluation.
Surveys reflect the current crisis of faith in Germany: Nearly half of the respondents now fear inflation, while every second person with a job questions which form of private investment even makes sense anymore.
Sports Clubs, Art and 'Cement Gold'
"People are becoming increasingly cautious about entrusting their hard-earned money to the banks," says Rolf Bürkl of market research institute GfK. A significant number of people are shifting their money around.
Instead of trusting German banks, many investors are turning to tried-and-true institutions such as the Hamburg soccer club St. Pauli. Within the span of just four weeks, some 5,000 fans recently bought a total of €6 million ($7.7 million) worth of shares in the club so it could build a new stadium. They were promised 6 percent interest. The club seems like a secure kind of bank to many. After all, it's been around since 1910 and has survived the many crises that have befallen Germany since then.
Record prices are being paid at art auctions. Meanwhile, in cities with booming economies, such as Hamburg and Munich, real-estate agents are reporting bidding wars over so-called "cement gold," as property has been dubbed.
(Excerpt) Read more at spiegel.de ...
Cometh the strongman yet?
But is gold really a safeguard against poverty? In April 1933, during the global economic crisis, US President Theodore Roosevelt forbade the private ownership of gold.
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