gold, page-48906

With the AUS economy recording just 0.2% growth last quarter and 0.3% the previous quarter even at a time of record low rates just shows how fragile the economy really is and getting ever closer to losing its record long run without a recession. With household debt at world record heights, banks reigning in lending and wage growth stagnant its hard to see how the consumer is going to spend/borrow Australia’s way out of the next recession... so it would seem the chickens are starting to come home to roost locally.



This headline from last night which gives off eerie similarities to America’s 2008 sub-prime mortgage crises... the difference is interest rates are at record lows and household debts are higher which is going to make this so much worse.




The RBA will be left with no choice but to cut rates, trying to postpone the inevitable which will put further down ward pressure on the AUD which is just another reason why the astute choose to hold a good perecentage of their wealth in an insurance policy like gold to protect wealth as it acts as a hedge against a devaluing currency . Once the USA comes a cropper to its greed and unsustainable system gold will eventually rise to its true value in all currencies.