Worldwide real estate markets are beginning to experience symtoms of the bust which has helped crippled the US economy. “The housing news is ugly not just in the U.S., but in other countries like Britain, Ireland and Spain. (Recent Economist headline: “Britain’s property boom turns to bust: prepare for a hard landing.”) This means the flood of printing press stimulus will also grow more global, as we saw with the Bank of England slashing rates this week. Bad news for paper currencies; good news for gold.” says Justice Litle.

Lord William Rees-Mogg says that this is just the tip of the iceburg… “I do not believe that the world is on the edge of another Great Slump, but the combination of the deflationary effect of the collapse of a widespread housing bubble with the inflationary effect of higher prices for oil and food does present Governments with the most difficult economic problems since the 1970s. It was then called “stagflation,” to reflect stagnant inflation. Both horns of the stagflation dilemma now look sharp and threatening.”