Home / Gold News / Blog article: Economic Recession
Previous: September 11th 2001
Next: President Hugo Chavez?

Economic Recession

August 31, 2006

It appears to most economists, though they don’t like to admit it, that we’re slowly moving into an economic recession. Since the Fed doesn’t give us money supply numbers any more, it’s a little more difficult to judge what they are sensing. A slow down of any significance though would cause the Fed to start printing money. And the more money you print, the more inflation there is. And?

Who Wants Cheaper Auto Insurance?

The Fed fights a recession by inflating the money supply. The more and the faster one inflates the economy, the more GOLD becomes a haven of safety against a declining dollar.

The euro dollar exchange rate is now shifting to the euro. With the Fed backing off interest rate increases due to a sagging economy and a housing market on the ropes, the us currency doesn’t seem to have much power against other currencies.

So far this week, gold has been going nowhere, building a base and back-filling. For the first three days of this week the net result is gold is down $3.50. Thursday, the last day of August could prove interesting though as hedge fund manager try to close out existing positions and take new ones. So, the 31st and the 1st could see much more action.

Written by Ernie · Filed Under Gold News 

Comments

Got something to say?





Houston Area Labor Lawyer - Wrongful Termination, Severance Negotiations, Sexual Harassment Suits