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There's Gold In Them Thar PIIGS

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According to a piece in Bloomberg's Economics Briefs for this morning, Greece needs to come up with $10 billion in savings in 2011 to just qualify for the second round of its bailout. Meanwhile, the government continues to come under pressure from a population increasingly angry about austerity measures. What to do?

What about gold? As Bloomberg points out, most measures of debt do not take into account assets such as gold reserves. The chart below shows the gold reserves of Ireland, Greece, Spain and Portugal, which incidentally has one of the largest piles of gold in Europe.

Of course, the $5.5 billion in gold Greece has in reserve would only chip away at a measly 1 percent of the country's total debt, but it would help get them into the second round of bailout money.

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