There will be no more goverment stimulus on a double dip recession in 2010

Currently we have a two prong crisis forming on global markets.

1. the sovereign debt issue lead by Europe (CDS swaps blow out, thus being more expensive to insure sovereign debt, this will be felt also on AAA rated goverment debt)

2. China slow down penciled in for 2010.

If the global ecomomy goes into a nasty double dip recession in mid 2010 the goverment will not issue any more fiscal stimulus, instead central banks worldwide will devalue their currencies and print money.

So the third crisis, which the beginnings can be seen in the oil and gold markets, is inflationary conditions globally.