Telegraph.co.uk
The former prime minister said that unless leaders take more action, the recent credit crunch could prove just the "trailer" to a string of crises.
"In 2008, when we were hours away from ATMs running out of money, small businesses being unable to pay their staffs, and schools and hospitals closing down through lack of cash flow, it felt as if the crisis of the century was upon us," he wrote in US magazine Newsweek.
"But if the world continues on its current path, the historians of the future will say that the great financial collapse of three years ago was simply the trailer for a succession of avoidable crises that eroded popular consent for globalisation itself.
"Those who believe that the world has learned from the mistakes that led to the crash are mistaken."
Mr Brown said the "resolve" to act seen immediately after the crisis has been replaced by indecision and vested interest. He urged politicians at the next G20 summit, which takes place in
Cannes in November, to take control of a globalised financial system which is still "perilously" unregulated.
Mr Brown's comments come amid repeated warnings by European policy-makers that the debt crisis surrounding the eurozone's weaker nations could have a worse systemic effect on global markets than the collapse of the investment bank Lehman Brothers in 2008, which precipitated the last crisis.
They fear "with good cause" that if Greece has to restructure its debt - effectively default - it could unravel a chain of trades based on the problematic debt and lay bare the interconnectedness of institutions around the world, said Stephen Lewis, an analyst at Monument Securities.
Original Source
This material is for informational purposes only. Although it is obtained from sources believed to be reliable, Leland National Gold does not guarantee its accuracy, or being all-inclusive. Past performance is no guarantee of future results. There are risks in buying and selling physical metals. The potential for loss as well as gain increases by leveraging physical precious metals transactions. Never trade with more money than you can afford to lose, and always be sure to read the Risk Disclosure provided in your account documents.
From an article on Coin Week:
In an overall boom market for gold and silver, there will be periodic bouts of profit-taking, where prices dip for a short-time. Also, as I have explained multiple times before, the US government, its trading partners, and its allies, have a huge incentive to suppress gold and silver prices.
Those interested in precious metals need to be able to identify whether price drops indicate a genuine market top, a temporary bout of profit-taking, or if they are simply the result of price manipulation at the behest of the US government.
Gold’s price is basically a report card on the US dollar, the US government, and the US economy. If the price of gold is rising, something is headed in the wrong direction. Silver often trades in sympathy with gold. If the prices of gold and silver rise, that would eventually force the US government to pay higher interest rates on its debt. A falling US dollar would lead to higher consumer prices.
Well, the US Dollar Index, a measure of the value of the dollar against a market basket of other currencies.
In response to a falling dollar, the prices of gold and silver soared until near to the close of COMEX trading last Friday. Gold reached another all-time high (ignoring inflation). Silver came close to breaking above its January 1980 all-time high. The indications were that further price rises might accelerate.
Both gold and silver backed off from the highs achieved late Friday. Is this drop a sign of a market peak (as the US government would prefer the public to believe), temporary profit-taking, or were the metals pushed down by aggressive US government price suppression tactics?
The available information indicates that virtually the entire decline can be attributed to desperate actions by the US government, its trading partners, and allies.
Some of the more obvious gold and silver price manipulation tactics of the past eight days include the COMEX twice raising silver margin requirements. Further, at least two brokerage firms last Friday raised their clients’ margin requirements for leveraged accounts far above the higher COMEX minimums. The raising of these internal margin requirements forced many customers to liquidate leveraged accounts.
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This material is for informational purposes only. Although it is obtained from sources believed to be reliable, Leland National Gold does not guarantee its accuracy, or being all-inclusive. Past performance is no guarantee of future results. There are risks in buying and selling physical metals. The potential for loss as well as gain increases by leveraging physical precious metals transactions. Never trade with more money than you can afford to lose, and always be sure to read the Risk Disclosure provided in your account documents. – Leland National Gold Exchange
