Global Financial Crisis Phase Two?
As Dubai defaults on its debts, the way business is done in Abu Dhabi is that there will be no bailout, which is in contrast to the way in which the federal government handled the US credit crises. The holders of the Dubai debt will likely get saddled with the burden, much of which is held by RBS. The economic crises has likely now entered phase two, with the ripple effects of unsustainable, large government deficits simply becoming monitized by fiat currencies, most of which global securities traders control. The result is an sudden increase in short term T-Bills as a flight to security takes hold, however, many economists believe this will be short-lived, as gold resumes its upward trend while countries like China and Germany pivot from the US Dollar and into precious metals.
May 26th, 2010 at 11:32 am
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