In my new book, The Age of Deleveraging: Investment Strategies for an Era of Slow Growth and Deflation, I discuss nine reasons for slow U.S. economic growth and real GDP gains of about 2% annually in the long run.

1. U.S. consumers will shift from a 25-year borrowing-and-spending binge to a saving spree. This will spread abroad as American consumers curtail the imports of the goods and services many foreign nations depend on for economic growth.

One disastrous international trade policy of the 1930s concerned tariffs: nations increased tariffs on imports to protect domestic industries; when applied universally, it resulted in declining export sales and trade volumes. Tariffs made the Great Depression worse.

Now, it appears, nations are on the verge of implementing another counter-productive policy -- manipulating currencies -- and if public officials are not careful, a similar downward spiral in international trade could occur.

So, Europe has stepped to the plate and agreed to a almost $1 trillion rescue plan to help avert a debt crisis, with the U.S. Federal Reserve pledging to do its part for overseas loans. The move has been cheered on the Street, as the major indices are significantly higher, the Dow Jones leading the way with a more than 400-point gain. This gain makes up a good portion of last week's plunge, which was driven by fears that Greece's debt problems would eventually spread to all of Europe. The fear was that such a scenario would put the future of the euro and the economies of the 16 countries using the currency in economic peril.

On Friday October 16, CME Group (NYSE: CME) decided that it wants to allow customers across the globe to use gold, physical gold, as collateral on all of its exchange products (alternative investment products, futures and options, etc). The member notice was sent out on late Friday, giving instruction on how the use of gold would work. Firms are allowed to post gold as collateral up to $200 million, the collateral will cover performance bond (margin) requirements.

Iran's flawed democracy is still better than most of the political systems among other countries in the region. For the past few decades the morality police, prodded by religious literalism, have mandated women to cover themselves when they are out in public. This same religious literalism has impeded the potential of a country that has a large population, in a key geographic region, with oil and other natural resources.

Iran is in the midst of a presidential election that has stimulated much heated debate among the population about the failures of the current government in economic and political terms, and that has created a feeling of isolation. The isolation is more than a feeling, and it has limited the growth of the nation to something far less than its capabilities.

The players at the G-20 summit have opened the curtain on Act 1.

First we have Japanese Prime Minister Taro Aso. He holds the position that a strong stimulus program is the only means to pull Europe and the world out of the current crisis. He cited Japan's experience in the 1990s when Japan used a strong stimulus as a way to stimulate growth. He also cited Japan's current stimulus package, which amounts to $720 billion, and he even said that Japan would discuss further stimulus if the need arises.

Standing in opposition is German Chancellor Angela Merkel. She is firmly opposed to more stimulus and demands to know why it is needed. She believes that excessive public spending will not assure a vital recovery.