Gold prices were over $1030 as inflation fears heated up in March of 08. One of the
best barometers to tell how much money (read credit) is
being created by government is by watching gold. Gold at
$1000 is the highest it's been ever.
As gold topped $1000, the news became front-page across the
country, and radio and TV financial programs led off talking
about the price of gold.
Further, few reports dared suggest that the price of gold could
climb still higher. Gold stands a good chance of seeing higher
prices before the inevitable price correction, which always
follows such a strong move.
Most reports saw golds high price as a novelty, not the ominous sign
that something is drastically wrong with the state of financial
affairs in the United States. The truth: gold is responding to
profligate spending in both the government and the public
sectors. Further, gold is rising because of the massive
inflation by the Federal Reserve under Alan Greenspan and the current Fed chariman. Let's
take a brief glance at only one reason for gold's jump above
$1000: federal spending.
The federal government now has more than 11.3 trillion in official
(on the books) debt. Only five years ago, gross public debt
stood at $6 trillion. For those calculating, that is a 91 percent
debt increase in only five years. The United States took 226
years to run up a debt of $6 trillion. In five years, an
additional $5 trillion was tacked on.
Unfunded U.S. government liabilities--Social Security, Medicare,
Medicaid, military pensions, federal workers' pensions, and
other promise such as picking up the tabs for bankrupt corporate
pensions--will reach $90 trillion or more by the time Bush leaves office.
Pulling statistics from the respected Congressional Budget
Office's January report on the federal budget and economy,
Citizens for Tax Justice show annual deficits under Bush
policies skyrocketing to $1.164 trillion by 2015. Those numbers are even higher now. These
projections are seven times the Bush administration's numbers
because the White House assumes, among other things, that
current tax cuts "sunset," that Iraq and Afghanistan
expenditures will suddenly end, and that federal appropriations
will "plummet" as a share of the economy.
The Congressional Budget Office forecasts that by 2013 "the
government is likely to be spending more to pay interest on the
debt than on all domestic appropriations put together." Any
wonder the price of gold topped $1000? Think gold prices will go higher?
It appears unlikely that the problem of deficit spending will be
addressed any time soon in Washington. Sadly, our lawmakers do
not yet even see it as a problem. While it is true that
Democrats never miss an opportunity to carp about Bush's refusal
to "roll back" his tax break for "rich Americans," the Democrats
would be as quiet as church mice if the deficit spending were
for welfare programs. Either way, the results would be the same:
continued deficit spending.
When gold prices move higher, so does the price of silver....precentage wise silver does it faster.
The way gold topped $1000 was a big deal because the price of
gold is the thermometer for the health of a nation's currency. A
rising price for gold suggests a fever is building. However, the
reporting suggests that few reporters understand the United
States is infected with a deadly virus, not a common cold.
About the author:Bill Haynes heads CMI Gold & Silver Inc, one of America's oldest
precious metals dealers. See CMIGS' website at
http://www.cmi-gold-silver.com/. This article may be reprinted
provided this signature remains intact, including the direct
link to CMI Gold & Silver Inc., Written by: Bill Haynes
When gold prices move higher its a good idea to
learn when to buy and sell gold to maximise your gold profits.
Use the commodity and option trading system designed to time
your gold and silver buying and selling as gold prices
move higher. But don't just buy without knowing when. To get the
most profit from your gold trading....you will want to time your
buy and sell points to coincide with the highs and lows in gold.
With gold experts like Jack Filkey projecting gold at over $2000
an ounce by the end of the decade, many investors are realizing
that there is some real profits to be made when gold prices rise.
October gold update....Gold getting ready to make another price move taking out the previous high of 1033.
This is the type of information you will get in Trader Jack's weekly newsletter.
Green arrow on lower part of chart shows when Gold Prices rached "critical buying mass".
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