In an interesting article Daily Wealth reports that… In the last two months, Spain has dumped 80 tons of gold onto world markets.  It has also flogged huge quantities of U.S. Treasuries, British gilts, and other similar reserve investments at a similar rate.

Why?

According to an article in London’s Daily Telegraph, the Spanish government is running out of money. The Banco de Espana now has less than $17 billion in foreign currency and gold reserves left. This is enough for just 12 days of imports.

The euro is the problem. European interest-rate policy applies to every country that uses the euro as its currency. Problem is, the European countries are all different and their economies move at totally different speeds. Interest rates are the politicians’ most important tool for managing the economy. By joining the euro, you’re giving up that power.