Ambrose Evans-Pritchard—America’s Federal Reserve and the Bank of Japan caused the gold crash

Posted by Kendall Harmon

Commodity prices have been falling since September, culminating in a rout over the past two weeks. That is a classic warning for the global economy.

It is becoming ever clearer that the roaring boom in global equities since last summer has priced in an economic recovery that does not in fact exist. The International Monetary Fund has had to nurse down its global growth forecasts yet again. We are still stuck in an old-fashioned trade depression, with pervasive over-capacity in manufacturing plant and a record global savings rate of 25pc of GDP.

German car sales fell 17pc in March. That should puncture the last illusions that Germany is about to pull Europe out of a self-inflicted slump.

Read it all.

Filed under: * Culture-WatchGlobalization* Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeHousing/Real Estate MarketLabor/Labor Unions/Labor MarketPersonal FinanceStock MarketThe U.S. GovernmentFederal Reserve* International News & CommentaryAsiaJapan

Posted April 18, 2013 at 12:32 pm [Printer Friendly] [Print w/ comments]
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