gold is getting CORRECTED!!

[blazespinnaker]

Re: gold is getting CORRECTED!!

If the UK defaults we will see massive global deflation.

Also, if the UK defaults, we could see another Bretton Woods. All bets would be off, really.

[Starving Steve]

Re: gold is getting CORRECTED!!

To understand the future, you have to understand Bernanke-Greenspan; their view is that de-flation is the #1 enemy. So their solution is liquidity.

To understand what the Federal Reserve Bank is up to, you have to stand by the sea and watch the tide come in. There is no shortage of liquidity at high-tide.

[hayekvindicated]

Re: gold is getting CORRECTED!!

If the UK defaults we will see massive global deflation.

Also, if the UK defaults, we could see another Bretton Woods. All bets would be off, really.

The Fed would bail them out. They'd print the $$$$ needed and extend some kind of "loan" with very very lax repayment clauses. They would justify it as necessary for the "stability" of the system and to prevent a "systemic meltdown".

Another possibility is that the Eurozone would accept the UK into its Zombie currency zone.

I find it hard to believe that the US and the EU would do absolutely nothing. This is not going to pan out the way we think it will. I doubt if there will be an outright default as with Iceland.

[Jay]

Re: gold is getting CORRECTED!!

The Fed would bail them out. They'd print the $$$$ needed and extend some kind of "loan" with very very lax repayment clauses. They would justify it as necessary for the "stability" of the system and to prevent a "systemic meltdown".

Another possibility is that the Eurozone would accept the UK into its Zombie currency zone.

I find it hard to believe that the US and the EU would do absolutely nothing. This is not going to pan out the way we think it will. I doubt if there will be an outright default as with Iceland.

There will be no outright default unless you consider inflation a form of default, which it is in my book. The debts of the US are denominated in its own fiat currency. We have trees to make paper and chemicals to make ink. We also have enough electricity to make dollar electrons. What else is there to say except that the market could start to swing wildly. The punchline is not in doubt.