Let us be blunt: The mortgage foreclosure crisis, which first burst into full public view with Bank of America’s suspension of all foreclosures only a few days ago, has the potential to completely destroy the American real estate sector in an epic legal and economic meltdown that would make the crisis of 2007-2008 look like the proverbial Chinese tea party.

Commodities markets have soared on news of a global currency inflationary war by central banks around the world, with gold prices climbing to more than $1,375 per ounce in overnight trading October 14. Other precious and semi-precious metals such as silver, platinum, palladium, and copper also topped recent highs in successive days of trading.

The notes of the latest meeting of the Federal Reserve, released on Tuesday, clearly show the Fed’s next step in trying to solve the problem it has created: Quantitative Easing II, or QE2 (qualitative easing is Fed-speak for increasing the money supply). The meeting lasted more than five hours and consisted of a debate about when to start the process: now, or later.

economy and recessionOn September 22, the Business Cycle Dating Committee of the National Bureau of Economic Research (BCDC-NBER) announced that the recession (it began in December 2007) had ended in June 2009. Obviously, all of those out-of-work Americans clogging the unemployment lines and lining up at job fairs didn’t get the good news.

Despite opaque and dissembling arguments that what the world needs now is a world currency to replace the weakening dollar, there are significant obstacles confronting that elitist dream.