Wednesday, June 16th, 2010
It’s an overnight sensation! Austerity! – all the cool central bank heads and heads of state are pushing it, from Greece’s finance minister (ex-Goldman Sachs, like Mark Carney) to Angela Merkel’s advisors. Get on the bandwagon, President Obama, PM Harper, it’s the wave of the future, tax us into serfdom. Less is more, y’all, unless of course you happen to be one of the creditors. If you’re a reader of this journal, all we can suggest – and this is strictly non-professional advice, so take it with a large grain of salt and a slug of free thought – is that you move into secure commodities (gold, silver, copper, oil if you can stomach it or find an ethical exploration company) to avoid future currency fluctuations and protect what value you may presently hold. The major gold advocates can still see a doubling in value over current levels. Protect yourself, as far as you’re able, from the state’s funny money.
June 16, 2010
The world is entering an “age of austerity” that could take about $7 trillion US out of global output by 2015 and restrain economic growth, Bank of Canada governor Mark Carney said Wednesday.
In a noon-hour speech to a business audience in Charlottetown, Carney said Canada will lead the Group of Seven industrialized economies over the next two years, but that may not be saying much.
He said Canada’s economy has recovered nicely from recession, but growth is slowing, and the global outlook is getting worse.
Carney left open how the Bank of Canada will approach future monetary policy after raising interest rates by a quarter point on June 1.
“Given the ongoing uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global developments,” he said.