Peter Schiff, economic adviser to the recent presidential campaign of Ron Paul, says conventional wisdom is wrong on the global slowdown.

Global economies are cooling off not because American consumers spending has slowed but because U.S. homeowners are defaulting on hundreds of billions of dollars of existing loans underwritten by lenders around the world.

This means, although foreign banks are suffering due to lending to the U.S., they can avoid future pain by refusing to lend to America anymore. This will torpedo the dollar. But Peter says this is precisely what must happen…

The biggest rap about investing in emerging markets has been that they suffer from out-of-control inflation. The high prices of food and fuel undermined otherwise strong economic progress in emerging nations. On a conservative estimate, food-price rises may reduce the spending power of the urban poor and country people who buy their own food by 20%, according to the Economist.

An important date in the City’s social calendar went almost unmarked this week. Tuesday, the Twelfth of August, marked the official start of the grouse shooting season. It’s easy to see why amid the war in Georgia, and fear of recession in Europe, people might have had other things on their minds.

The British pound fell to a 22-month low, after the Bank of England (BOE) offered a gloomy outlook for the U.K. economy and the chance of an interest rate cut increased.

Existing and future generations will pay a hefty price for the government’s financial bailouts, says Eric Roseman, investment director at The Sovereign Society.

Yes, the rescue of Bear Stearns (NYSE:BSC) in March, and Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) in July, averted a major short-term crisis. But the long-term costs of inflation and a worthless dollar will be more painful.

Eric says the value of paper currency will be worth nothing when the inflationary storm hits…