U.K. Government to Raise Spending, Borrowing to Ease Downturn. Beat Depression by Inflation.

It is very important development.

This could bring some wealth preserving strategy into US Corp. as well. As I have mentioned before: Infrastructure spending is the best place for all these newly printed dollars. At least part of it which will not be spent on debt servicing will create new base for a future growth. During Depression in 1929 USA has build their interstate road network.

You are fighting with inflation at least most dire Depression consequences: unemployment and stagnation in industrial output due to consumer debt squeeze.

Here where decoupling will take place: Russia will do it with 500 billion in reserves, China will do it with 1.9 trillion reserves, USA will have to do it with 1-2 trillion deficit this fiscal year.

This is the best outlook for our Gold, Silver and Commodity play.

Oct. 19 (Bloomberg) -- The U.K. government will step up public spending projects and increase borrowing in a bid to curb the country's biggest economic slump since 1991, ministers including Chancellor of the Exchequer Alistair Darling said.
The U.K. will prioritize spending on housing, energy and small businesses as well as bring forward construction projects on schools and hospitals, Darling told the Sunday Telegraph in an interview published today. The government will increase debt to provide the funding, the newspaper reported him as saying.
``We will get the country through this period in every way we can,'' U.K. Business Secretary Peter Mandelson said on the BBC's Sunday A.M. television show today. ``The costs of doing too little will be greater than if we take the action to maintain spending and investment in the real economy, in public services and infrastructure.''