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I have been travelling in Europe over the Northern Summer and have been impressed by the obvious wealth and consumption everywhere I have been. As a good statistician, I know better than to assume that one person's experience is valid evidence for what is typical, but I was still a little surprised when I read Matt O'Brien's assessment of Europe now, relative to the 1930's.
http://www.washingtonpost.com/blogs...30s-europes-recession-is-really-a-depression/
Here is a good pictorial summary:
O'Brien argues that the Euro is like the Gold Standard in the 1930's. Europe can only begin to recover when they dispense with this artificial construct, that doesn't reflect the economic realities.
It is interesting that O'Brien doesn't address the "elephant in the room" - the rise of fascism. In spite of a worse economic performance over the last six years, there has not been an equivalent rise in political extremism.
I think that the judge is still well and truly out on the wisdom of investing in gold has a hedge against geo-political uncertainty.
Enjoy the article.
