Central Banks And Gold

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

The very near future is likely to see a sea-change in central bankers’ attitude to the gold allocation in their reserves. The failure of G20 monetary policy since the financial crisis is causing a general rethink, which may eventually lead to a new policy direction. For now, that is undecided, beyond a growing acceptance that today’s monetary policy does not work and the assumptions of recent decades, that gold as money should be phased out, might have been a mistake.

The idea, that Western central banks could banish gold from the monetary scene over time, has been disrupted by the persistence of Asian demand, fuelled by the remarkable economic progress of ex-communist states embracing capitalist methods. Western financial markets have hardly begun to grasp the wider implications of the shift in economic power from the heavily-indebted welfare economies, to China, Russia and other members of the Shanghai Cooperation Organisation, and their consequences for gold.

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Economic Stagnation

By Gerald Peters – Re-Blogged From http://www.Silver-Phoenix500.com

So we have once again seen official reports about sub-par economic growth. Some are constantly perplexed as to why growth is so weak. I believe it will eventually become more obvious to everyone that debt is one of the major problems causing our current stagnation.

Looking at the above chart, we see GDP growth rates have been getting weaker each decade. The economy used to grow at 7 or 8 %…then 5 or 6%…then 4%…then 3%. Currently. There is only 2% growth. Moreover, after the next recession we will be lucky to see 1% growth as the norm. Follow the trend and we see that the US economy will probably be at 0% economic growth after 2030. To be sure after 2040 we will probably see negative growth as the norm. By the way, the chart of retail sales growth looks the same. This trend has continued regardless of which political party controls the White House or Congress.

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