By Simon Watkins
The Treasury is drawing up emergency plans this weekend in case America defaults on its debts as political bickering in Washington threatens to take the world’s biggest economy to the brink of disaster.
Chancellor George Osborne, the Governor of the Bank of England Sir Mervyn King, and the chairman of the Financial Services Authority Lord Turner, have held frequent discussions in recent days and are understood to be outlining plans in the event of American politicians failing to reach a deal on the budget deficit this week.
A default by America would send shock waves round global financial markets.
One analyst said the worst scenario of an ongoing default would be like a Lehman Brothers collapse happening every two weeks and would send the world into ‘a sudden and severe depression’.
Chancellor George Osborne, the Governor of the Bank of England Sir Mervyn King, and the chairman of the Financial Services Authority Lord Turner, have held frequent discussions in recent days and are understood to be outlining plans in the event of American politicians failing to reach a deal on the budget deficit this week.
A default by America would send shock waves round global financial markets.
One analyst said the worst scenario of an ongoing default would be like a Lehman Brothers collapse happening every two weeks and would send the world into ‘a sudden and severe depression’.
If the have it, they need to get that Gold out of storage and let it be what IT IS... MONEY.
ReplyDeleteBut first they will have to revalue.
There is no storage. Fort Knox is practically empty. All those machine gun turrets are protecting empty crates. The banksters robbed us of everything real long ago.
ReplyDeleteDon't think Fort Knox is empty? Then why has there not been an audit since the '50s??
Sorry chum, the banksters have left us an empty shell. No manufacturing, no more innovation. Once the Ponzy economy hits critical mass, African Tribesmen will have a higher standard of living than us.