syria ...., page-33

"For at least a couple of financial thoughts given the current worldwide problems what current countries economy could withstand $200.00 per barrel oil cost? How many of the big Wall Street firms would handle a $2,000.00 Gold price?"

A rise in the price of oil to that level if temporary, it would not make much difference except to countries without any strategic oil reserves, in which case oil would have to be rationed.

If permanent, there would be a global recession with some countries including ours performing temporarily better than others, but after a few years the global economy most likely would resume its growth on the basis of global adaptations to higher energy prices and the development of alternative sources of energy.

Actually, I suspect that environmentalists would even welcome such development.

Of course, that you are entitle to come up with a less optimistic scenario, including one with a global war centered around oil, etc, etc, but having gone through two oil crisis I am prone to be optimistic.

As to the price of gold going to $2,000.00, it almost got there two years ago, I don't give much importance.

It certainly would be good for those with piles of the yellow stuff hiding in cupboards or under pots or to those with the right to be paid in gold and bad to those liable to come up with it in payment of something or another.

If by any circumstance a financial institution would get in trouble because of that then it would, depending on the systemic risk envolved or lack of it, be bought, kept afloat with loans or let go bankrupt.

Actually the financial problems caused by the finnacial crisis of 2008 were dealt with very rapidly and in a very effective way in the US. Unfortunatrely, is is the real economy that is still suffering due to the lack of appropriate financial stimulus. QE is not finncial stimulus, but monetary stimulus.