The Financial Crises and the Gold Standard

First it was Iceland, then Ireland, then Portugal followed by Greece. Confidence in the financial markets of many nations’ ability to repay their borrowings has been shattered. The latest nations to have their financial stability threatened are Italy and Spain. In China at least 10% of the internal lending by the Chinese State to local authorities will have to be written off as a bad debt. The Euro is in danger, and the mighty US dollar is threatened by the choice that the US government must make – either increase the budget deficit or cut back on Federal hand outs. Continue reading