Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

It seems clear that Germany has reached the limit of its patience with its feckless southern neighbors, who have taken the attitude that they might as well be hanged for a sheep as for a lamb, and seem unwilling to adopt the drastic austerity measures needed to stabilize their positions.

If Greece (and perhaps Italy and others) are allowed to go bankrupt, as I expect, and forced out of European monetary union, the result is deflationary. That seems to explain why gold is falling.