[6:00am ET] Who would have taken the International Monetary Fund for being an early adopter of the ‘D’ word? Following a speech in Kuala Lumpur, Malaysia, IMF CEO Dominique Strauss-Kahn is reported in the Wall St. Journal as telling reporters that the US, Western Europe and Japan are “already in depression,” and that the IMF could slash its global growth forecasts further. The “worst cannot be ruled out,” he said. These comments were far more pessimistic than forecasts released by the IMF as recently Jan. 28, said the WSJ.
Is the economics professor talking up the IMF gold position or simply getting the world to see that the central banker’s banker is going to issue its own debt, in which case all double-entry bookkeeping comes to an end as liabilities become endless, fiat money worthless, and the only countervailing asset is gold. Yes, gold @$2500, here we come. It’s just a matter of time.