Worldwide Economic Crisis is Huge

Hendrikus Johannes Witteveen who was head of IMF from 1973-1978 recently said in the Financial Times that the worlds financial system could become even worse than in 2008.  He also said it is happening in other developed countries which slows the growth of the worlds economy and rising countries.

The Current European debt issues and the crisis of 2008 have made the ECB and the Federal Reserve have fewer options to help and make an impact.  His solution is to allow countries with debt problems to kind of form a safe haven or debt facility that would allow them to borrow funds from stronger countries foreign reserves.  Doing this will put less stress on each country which will help weaker nations and giving the IMF significant power.  At times like these the IMF has always been the backup plan and it seems to have worked in the past.

Witteveen’s statements have significant importance cause he believes a new crisis is on the horizon which will probably be worse than the crisis in 2008 and that will be devastating to the United States and Europe because they are in no position to handle it.

This is evidenced by looking at the price of gold, it shows how the price has been rapidly rising in the past few weeks.

Now we are upon Quantitative Easing round 3.  Recent talks are going around that the markets are expecting QE3 to be announced as early as Friday after the Federal meeting that took place in Jackson Hole, Wyoming.  Whether QE3 is announced or not do we think it will really make a difference?  Our economy and our problems were not solved or fixed with QE2.  It did make gold prices increase and if QE3 is announced gold just might hit $2000 per ounce.

International action needs to take place says Witteveen to avoid more problems which many governments are not prepared to handle due to debt problems.

The world has come to realize just how dangerous the problems are to us all.  We all need to be involved and protect ourselves and loved ones.  Owning gold and silver is a wise choice due to the fact that they flourish at times like these.