Greek Ouzo crisis escalates into global margin call as confidence ebbs.

For the third time in 18 months the global financial system risks spinning out of control unless political leaders take immediate and radical action.

Super-wealthy investors move billions out of Greece. Investors withdraw up to €10bn from Greece as government prepares tax crackdown to cut down deficit.

A staggering €8bn-€10bn (£7bn-£8.7bn) may have been taken out of Greece by private investors since it became engulfed by economic turmoil in November.

Fears of a debt default by Greece and other EU countries that have been hit hard by the financial crisis have caused the euro single currency to depreciate sharply in recent weeks. The euro member states now face a dilemma, according to Thomas Straubhaar, president of the Hamburg-based HWWI economic institute.

Straubhaar says one solution would be to allow inflation in the euro area to rise. That would lessen the real burden of nominal debt, and in political terms would be the simplest way to deal with excessive government debt.

"Inflation lessens the real purchasing power of the masses like an indirect tax (...). But there's a tremendous difference: It requires no parliamentary approval," Straubhaar wrote.

Every once in a great while, the market offers a unique opportunity to buy precious metals 'on the cheap'. I believe today is one of those moments.

Counterparty risk is growing. As it does, the precious metals become increasingly important to preserve wealth because tangible assets are not dependent upon the promise of any government or bank. Gold and silver are the ultimate safe haven, and right now they are being offered at bargain basement prices.

... the risk of sovereign debt defaults is not going to disappear. Nor is uncertainty about the durability of the euro. And the dollar continues to be debased by reckless spending that is piling more debt upon the US government's huge mountain of debt. These risks create an environment in which one seeks safety for their hard-earned assets, which is what the precious metals offer.

Gold should continue to consolidate over the next few weeks but, the next big move is likely to be up.

This is the view of Sprott Asset Management's chief investment strategist John Embry, who says he is looking for the price of the yellow metal to hit around $1,350 to $1,400 by late spring.

"The idea that the US dollar is a safe haven today is flat out wrong," he added, "and that is going to be one of the major factors that are going to change the perceptions in the gold market going forward."

"I think a lot of the world's wealth is figuring out that we have little choice given the debt problems in the world and the resultant unlimited creation of money and so I think there is a solid investment bid in the market for gold."

He adds, that concerns that have been raised about the possible impact the jewelery market is likely to have on the long term rise of gold because, he says, "all great bull markets in precious metals come from their reestablishment as money."

A great disconnect exists in the gold market between the exchange futures contract price (the paper price) and the gold bullion paid price for transactions (the physical price). The differential in price is growing wider, enough to place tremendous pressure on the gold market itself. Look not to the gold premium paid for purchases, but to high volume purchases in the tens of million$. In mid-December, almost every demand for gold contract delivery was matched by a cash delivery, complete with 25% bonus premium offered. The officials even produced a new ledger item called 'Cash For Delivery' that was necessary to balance their badgered books. It prompted little attention. Some call it a basic bribe. Others call it a technical default.

Fast approaching is the event of GAME OVER for London, a condition that has already reached critical level, according to a key reliable source of information with London connections and direct experience with its market events. How long can a major metals exchange sell contracts but have miniscule supply of gold in their vaulted possession? The paper gold market and the physical gold bullion market have finally separated in a practical manner, meaning actual gold has almost no role anymore in London paper contract settlement. The absence of gold in London requires extraordinary tactics to settle contracts and to obtain gold bullion. Red tape procedures delay delivery for individuals, and bribes accompany gold delivery demands as standard practice. The London Bullion Market Assn has almost zero gold, its supply having been drained in high volumes since early December, a process currently in acceleration. The opportunity to convert fiat money into precious metal at prices considered reasonable is also vanishing.