THE BRITISH ECONOMY
Twenty months ago, I was the only commentator (to my knowledge) to predict nationalisation of our banks. SEE HERE.
Here’s another prediction: The Ponzi scheme that is the global economy will soon come crashing down – and it will be quick. Governments everywhere – but especially in the United KIngdom and the United States are bankrupting themselves and destroying paper currency. The crash of the dollar is weeks away. In six years, the dollar is already down one-third against other world currencies. It is now heading for a precipitous crash and the pound sterling will not be far behind.
That will affect our spending power as never before and we will finally claim our rightful place as a Third World economy – in spite of the Bank of England continuing to print money. The printing and borrowing by our governments have inflated the stock markets and the values of our banks. However, there is always a price to pay. The price on this occasion is government bankruptcy.
We know that the balance of economic power is slowly heading East. China has been quietly buying gold – at least it now has the tangible assets which we no longer possess here in the UK. You may recall that Gordon Brown disposed of the UK’s gold. The buyer? China.
So, if you are holding dollar-denominated assets or even dollars – you know what to do. But be careful, because when you head for the exit, you are very likely to be trampled-on by hedge-fund managers and everyone else heading for the door.