Economic situation is leading and thriving

Thursday, December 31, 2009

For the past six months of 2009, The Bank of England has been screaming at the British Prime Minister to stop his spending.

In fact, they have gotten so vocal for an organization that usually conducts its business behind closed doors and through confidential memos, that every newspaper in England – and most across the world, features their discontent on the cover.

The In September, the Times of London had a picture of Mervyn King, the BOE governor with a headline that read “No more stimulus” – while online versions of the story had titles – “Stop, we have no more money”.

It is interesting to see a little life out of the Brits with regard to self-criticism. It is worthwhile to note though that the BOE had it wrong – and still does. They are the spenders par excellence with their low interest rates not helping foot the cost of their 200 Billion Pound stimulus – which was extended earlier in the month until February, 2010.

The similarities between the US and England, spending silly in the name of recovery while the debt goes higher and higher, is laughable.

There is one difference though, no one is screaming for Obama to stop his spending. Treasury Secretary Timothy Geithner is issuing debt paper like its…..well, paper. He’s the hatchet man taking orders from the boss – and he knows his place is to look pretty, paint a nice picture and keep the printing presses full of ink.

To criticize the master could be punishable, and the US Constitution’s Fifth Amendment grants everyone the right to protect themselves against self-incrimination, perhaps this is why he does not come out, if he did he would have to admit complicity.

Not saying here that there were any criminal acts, but if it were you or I taking out loans, mortgaging ourselves to the levels that the US government has I can assure you there would be some criminal investigation into fraud and negligence.

The world is getting worse – and 2010 will see China and Russia strengthening their call for the world to adopt a global currency in lieu of the dollar. The UN will do the same.

And while there have been these ideas before, we are entering a period of fear driving decisions, where the irrational becomes the rational in order to save us all from economic disaster.

I fear that the UN will get their way as there is weakness in both London and Washington – backing China and Russia’s calls might just be a good solution to a problem the resentful third-world dominated UN has been looking for.

I fear a global currency system – as it will destroy the capitalism that has made so many wealthy – and enabled the free markets such as Forex. It will kill the Online Forex and commodity industries and turn us all into socialist sheep, following instead of leading and thriving. The day’s ahead are pivotal – will you remember where you were when the lights went out?

0 comments:

About This Blog

Get the latest Forex online news and updates right here at one place.