Nothing remotely like this is currently in the cards.
It was the last gold standard collapse.
The US gold standard was abandoned domestically in 1934.
Nothing remotely like this will happen this time around.
World War II deficits exceeded 20% of GDP annually.
Currently Personal Income is muddling through with flat to modestly positive gains month over month.
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Factory orders rise in February
by Emily Kaiser
Apr 2 (Reuters) —The IMF was told its war chest will be boosted by $500 billion and it will receive another $250 billion in special drawing rights, the agency’s synthetic currency.
Multilateral development banks including the World Bank will be enabled to lend at least $100 billion more.
Thanks, IMF funding functions very much much like deficit spending.
Hearing talk of flat q2 GDP.
The great Mike Masters inventory liquidation that triggered the sudden negative growth ended late December.
The rising deficit spending and the new quarter seems to be bringing new buyers into equities and the rest of the credit structure.
The Obamaboom seems in progress- strong financial markets, rising energy costs, and painfully high unemployment.
Hardly the outcome they are shooting for.
Karim writes:
Some early snippets out of G20:
New orders received by U.S. factories rose in February, government data showed on Thursday, breaking a six-month streak of declines and bolstering hopes the economy may be beginning to crawl out of the depths of a recession.
The Commerce Department said factory orders rose 1.8 percent in February after a revised 3.5 percent drop in January, initially reported as a 1.9 percent decline.
Economists polled by Reuters had expected a February increase of 1.5 percent.
Orders for non-defense capital goods excluding aircraft, seen as a measure of business confidence, jumped 7.1 percent after a steep 12.3 percent drop in January.
Orders for durable goods rose 3.5 percent, revised from the previously published 3.4 percent increase, while orders for nondurable goods edged up 0.3 percent.
Inventories decreased 1.2 percent, down for a sixth consecutive month. That was the longest streak since March 2003-January 2004.
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| Survey | 650K |
| Actual | 669K |
| Prior | 652K |
| Revised | 657K |
| Survey | 5590K |
| Actual | 5728K |
| Prior | 5560K |
| Revised | 5567K |
| Survey | n/a |
| Actual | -18.8% |
| Prior | -20.5% |
| Revised | n/a |
| Survey | 1.5% |
| Actual | 1.8% |
| Prior | -1.9% |
| Revised | -3.5% |
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