We’re not meant to have economic crises in August

Posted on July 15 2011

August is meant to be the quiet month of the year:  the silly season when no news happens.

I don't think it's going to be that way this year.

The US dollar  looks like it will default.

The Euro  will begin to collapse.

We're heading  for one of the biggest all-time crises in economics in one supposedly quiet month.

It's not a pretty prospect.

I'm worried.

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8 Responses

  1. roger phlegm says:
    July 15 2011 at 12:53 pm

    Then why are you suggesting people invest in UK bonds? Gold and silver are the way to go. Batten down the hatches – QE3, $4trillion european bailout, it going to be fun for a while. But that’s no bad thing – we are all agreed that global consumerist capitalism or a society based on the premise of never ending growth is not sustainable. We all have plenty for our needs, we just need to control our greed.

  2. Demetrius says:
    July 15 2011 at 1:10 pm

    I’m more worried than you are because as an added extra we could have a nasty volcanic eruption somewhere.

  3. Stevo!! says:
    July 15 2011 at 2:00 pm

    The American right are absolutely insane! They are literally playing “chicken” with the US economy in order to force the House to agree to tax cuts and cuts in social security and cuts to the deficit.

    If the US ARE insane enough to cause a default, it will almost certainly cause the dollar to crash through the floor, causing many countries who hold dollars to simply dump them.

    They are risking armeggedon! As I have already said……..they are totally insane!!!

  4. Frances Coppola says:
    July 16 2011 at 4:33 pm

    UK bonds are indeed safer than most provided that the EU crisis is contained. However, if Ireland defaults the UK will be in big trouble and can expect significant interest rate rises on its debt.

    • Richard Murphy says:
      July 16 2011 at 5:54 pm

      I don’t agree

      We’ll QE2 instead

      And candidly – at that point market dynamics might also fail – all dealers amy be under state control anyway…