Anyone who studies what is happening in macro-global economics can clearly see that there are just three steps to go to the return of a gold standard.
- Saudi Arabia accepts payment for oil in currencies other than USD
- Germany leaves the Euro
- The gold price in the Shanghai gold market is set at double the price on the UK & US markets
What this means for Jersey
Jersey is totally dependent on the banking system of the United States for its living. The City of London is the offshore centre for the US banks and Jersey, the offshore centre for the City of London.
With the stuttering stock market and announcements recently that interest rates will not rise, rendering our recent emergency budget incorrect just two days after the election. Poor stock market performance will affect not only the government's income but the fees collected by Jersey's finance industry meaning that we can expect further job cuts and lower than budgeted corporation tax receipts.
As the value of the pound falls, expect the prices of everything to rise, everything that is, except housing where most people have the majority of their wealth invested.
Before they tell you this is all unexpected, I just thought you would like to know... it is not unexpected it is the inevitable consequence of decisions made before I was born. Of decisions made by the government you have elected and continue to elect.