Collapse of Western Economy. (part 1.) Back To Gold.

TELEGRAPH
September 12, 2008.

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.

As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.

Source:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119...

__________________________________
TELEGRAPH
June 19, 2008.

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century.

Source:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/18/cnrbs118.xml

Category:

News & Politics

Tags:

• Collapse
• of
• Western
• Economy.
• (part
• 1.)
• world
• economy
• dollar
• collapse
• ron
• paul
• stock
• market

[TheRyesick1]

The only reason he is not president right now is because of our corrupt corporate media and the corruption of the republican party. If he ran as an independant he would shred the republicans. RON PAUL FOR 2012!!!

[glitchnoise]

My first instinct in 2008 told me that ron paul was the man for presidency, simply because he was outspoken. He was the type of guy that would popped for saying shit that he shouldn't have said. Obama, on the other had the mesmerizing charisma that everyone fell for, even I. Ron Paul 2012.

[isitcosimblack]

@09051961butts america wanted change , obama wanted to bring it , the people wanted change , obama found out that the world is not ruled by the american president , but by golds&sachs etc . if obama wouldve try to change the system in order to bring the power back to the choosen leader , he wouldve got gettin rid off one way or the other . no president ever will be able to bring what the people believe he can bring period

[TSM8088]

The "Baby Boomer's" selfishness and outright greed over many decades has ruined the United States economy.

[09051961butts]

AMERICA WANTED CHANGE,,, IT NEVER HAPPENED!!!!!!

THE CHANGE WE NEED NOW IS RON PAUL.

AMERICA HAS THE OBAMA BLUES

CLICK AND LISTEN

[becij13]

does anyone know, or roughly know what impact will going to gold and silver will have on the british pound?

[nazirdjon]

a proverb stands strong:

He that goes a-borrowing, goes a-sorrowing

[pbatusa]

Here: Deuteronomy 15:1-6

1 At the end of every seven years you must cancel debts. 2 This is how it is to be done: Every creditor shall cancel any loan they have made to a fellow Israelite. They shall not require payment from anyone among their own people, because the LORD's time for canceling debts has been proclaimed. 3 You may require payment from a foreigner, but you must cancel any debt your fellow Israelite owes you.

[Badwolf182]

@WISDOMKING13 incredible what these politicians across the world are getting away with.

Its actually the collapse of the western civilisations - just like the Roman empire.

When the western economies collapse millions or billions will die.

[Gamabyu]

Ron Paul is the one President I wouldn't mind if he ran 3 terms