All Posts Tagged With: "g20"

Why would gold go down so much? Because people are finally realizing that deflation is the real risk, not inflation. Gold could continue to slip and slide for a long time now… It’s hard to say. It can rise in a deflation. But it depends on how volatile and uncertain the markets appear. In a stable, Japanese-style slump, gold could go down and stay down for many years.

And even this modest goal presumes that economies are able to grow faster than their debt – in real terms. When you get debt equal to 100% of GDP, you’re over a barrel. If interest rates were to return to the double digit levels of the ’70s, it could cost more than 10% of GDP just to pay the interest.

Several things have become obvious: first, a ‘recovery’ is not going to happen; second, after 60 years of credit expansion, the world has entered a long period of financial adjustment and debt destruction; third, most economists should be put to work picking up trash along national highways. Not that they would do a very good job of it,

Who begat Hungary? North American markets tanked on Friday on a double barrel of strange and disappointing news. First was a comment from a spokesman for the Hungarian president that the country faced a “grave” economic situation. Debt begat that.
But the 3.15% fall in the Dow Jones Industrials and the 3.44% fall in the S&P 500 were generally blamed on a disappointing U.S. jobs report.

The press attributed this week’s rise in gold to benign causes. The end of the world seems to have been postponed – indefinitely. Bloomberg reported that a clear majority of those polled thought the world economy was recovering.

The World Bank – which is a total failure, which is explained by it being a ludicrous clot of communists and socialists – never saw economic tragedy coming, either, and estimates that “over 90 million people may be pushed into poverty in the global economic turmoil.”

” Most of the market players who made quick and decent money during the past few weeks do not believe in a deep reversal trend on the markets,” Gabriel wrote. “They just took advantage of a technical rebound that already drove the S&P/ASX 200 twenty percent higher than the lows posted early March.

“Governments know only one way of holding back recession. What do you suppose it is? Yes, the only solution they can think of is to continue the inflation. The ‘boom’ is regenerated with more bank credit and government subsidies. Companies appear to come to life again.”