Posted by RalphWSiegler
on September 15, 2009, 3:13 pm
Today the Fed Reserve Chairman is telling the world the recession is at an end though labor will be "soft" and credit markets tight.
Banks always lag in recovery, but I saw this article that warns something is very wrong this time around, of deflation picking up speed, credit balances shrinking too fast and banks unwilling to pump shriveling money supply in the UK Telegraph They warn of another dip into worse recession, but my brain when it hears deflation spooling up says maybe even possible going into Depression II if something doesn't break this kind self-reinforcing trend.
Another major news item that has been in the financial sites for months has been China's hording of gold and going to a gold standard. That's fact.
I've also seen rumors, which I'm still trying to get authoritative sources, of Arab countries and Switzerland bulking up on gold and planning to get into gold reserves / currency /trade instruments in a big way. Of countries demanding their physical gold back from the U.S. vaults. Of mainland european powers wanting ditch the dollar. In short, of countries tired of and mistrusting the paper U.S. / London fiat. Would welcome any postings here if anyone knows anything.
Is the U.S. (and U.K. too, already in much worse shape) about to fall off monetary cliff with countries abandoning the dollar?
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