Huge rise in gold and oil prices as a precursor of a global financial and economic crisis

摘要

An increase in gold and oil prices is shown to signify crises in the world economy and an algorithm for computing the critical time based on the approximation of the current prices by a power function with a singularity and superimposed accelerating log-periodic oscillations is proposed. A sharp increase in the investments in gold suggests that the second wave of crisis is approaching. The amount of data and recorded log-periodic oscillations accumulated by November-December 2010 can predict that second recession is likely in the early June 2011. To mitigate the effects of the bubble deflation, it is necessary to proceed to internationally recognized currencies, to introduce gold standard elements, or to internationally monitor the emission of US dollar as a world reserve currency. The basic investments in technological innovations and their variations is required in the nearest years.