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Leading indicators now suggest that the global recession is coming to an end and the world economy is on the road to a policy-induced recovery. “The OECD’s composite leading indicators signal that the worst is over,” Tu Packard said in the global outlook report released Friday by Moody’s Economy.com, the research unit of Moody’s Corporation, which is independent of Moody’s Investors Service. The OECD refers to the Organization for Economic Cooperation and Development. Packard said he saw significant improvement in the world economic map in July, as compared with that in January. Ample liquidity provided by central banks has helped stabilize the financial markets and credit conditions and bank liquidity has been improving, he said. In Asia, China and India are again picking up growth momentum and are the first to recover from the impacts of the global financial turmoil and economic slowdown. Indonesia and Bangladesh are still members of the expanding growth club. Turkey and South Korea, which enjoyed broad-based growth in the second quarter, are projected to have an early recovery. South Korea and other industrialized Asian economies are also benefiting from a strong recovery in the electronics industry. But Japan remains in the slowdown phase, still troubled with high unemployment and massive overcapacity in manufacturing. Read more

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Gold is a investments that thrives during times of struggle and strife, investors buy Gold because of its intrinsic value.

Just after of 9/11, the financial markets tanked; the DJIA Jones lost 15%, the NASDAQ lost 16%, the S&P 500 lost 12%, and Gold went up 8.5%. Now the analyst’s expectations are that Gold prices rise significantly along with the tensions in India and Pakistan and the Middle East escalate. Fully 20% of the world’s Gold is bought in India.

Further, there is the demand/supply equation and the expectation of inflationary pressure in 2009 as the bail out money is printed and the US$ strength weakens.

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Financial markets are braced for large interest rate cuts across the eurozone on Thursday amid mounting evidence of a sharp slowdown in the leading global economies. In the eurozone, traders priced in a 0.75 %point reduction by the European Central Bank to 2.5 per cent on Thursday, a move that would be bigger than any it has made in its near 10 year existence. Although economists were a little more cautious, with inflation risks disappearing fast, they nevertheless believed a 0.75% point reduction was a distinct possibility.

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The World Financial leaders, the G-20, will come together November 15 in Washington, D.C. to try to resolve this historic global economic crisis in the first of what may be a series of meetings to address its underlying causes, the response, and to formulate a strategy in dealing with the financial upheaval.

The G-20 consists of leaders of Japan, the United Kingdom, France, Germany, Italy, Canada, the United States, the European Union, China, Brazil, India, Russia, South Korea, and other major economies.

President Bush says the winner of the November 4 U.S. presidential election will be welcome to join the process between the election and the inauguration on January 20.

Both of the major candidates, Senator’s John McCain and Barack Obama, have acknowledged that the meeting is vital.

The following excerpt of a report on the summit gives insight.

“[U.S. President] Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso, who met at the Camp David, Md., presidential retreat last week, announced the series of summits, saying the international community must work together to address the credit crisis that has shaken markets the world over.

“Bush has supported the steps European nations have taken to fix the financial markets and is willing to listen to a range of ideas from both developed and developing nations. But he hasn’t signed onto the more ambitious, broad-stroke reforms that some European leaders have in mind to avoid a repeat of the market crisis that rippled around the globe…” (Deb Riechmann, Associated Press, “World leaders to meet on economy in Washington,” 10/22/08).

The emergency G-20 meet should alert us to the magnitude of the economic earthquake that continues to reverberate throughout the world communities.

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