Gold to the Rescue

By EK

The price of Gold is rising due to too much credit (debt) resulting in no trust in the system. Central Bankers and Governments/Politicians are panicking about gold price because it’s telling them their fiscal policies are failing and debts are uncontrollable.

Even the space program has been cut out of the American dream. Atlantis landed at the Kennedy Space Center in its final flight. Obama’s reticence towards a federal space program has become a disaster for society, science, and human endeavor. While NASA receives about 0.6% of the entire $2.9 trillion US federal budget, it’s doubtful that even the Hubble will ever be brought back to Earth. However, with the economic restrains ticking, a much larger thrust is building in the US. Its no less powerful than a rocket booster as the world awaits the debt ceilings final landing. But then what afterwards, could anything be salvaged? America says the government is doing the very worst job they’ve seen in their lifetimes.

Treasury Secretary Tim Geithner, President Barack Obama and Speaker of the House John Boehner are still negotiating a “grand bargain,” each having a different point of view as frustrations continues. With Boehner rejecting a $3 trillion deficit cut deal, the President doubts if the GOP has a capacity to make the deficit agreement. “There is going to be a two-stage process. It is not physically possible to do all of this in one step,” Boehner told Fox News. While the two parties struggle with Obama in its nucleus, the US economy needs another prescription for a new reform to change the deadlock in Washington. As fears mount, the dollar heads south and gold edges up dragging silver to its helm.

Those who loaded up on this barbaric “tradition” back before the bailout chieftains were scrambling to keep sanity in their land, had actually preserved some wealth. With the dollar losing more and more, it’s little wonder why prices are rising. Meanwhile, Newedge USA LLC predicted that gold prices would surge to $1,800 by the end of this year, and silver would zoom to $70 an ounce by March, said the New York-based futures-commission merchant. The Asian markets have also stepped up its gold hoarding. China steadily advances on world capital markets believing, that the US is bankrupt beyond saving and is buying gold and silver while dumping US treasuries.

Watching gold/silver prices rocketing as the USD is falling south; Asia has become the biggest factor in the gold and the silver market. From 2008 to 2010, silver demand soared 17% globally – including 67% in China alone (reaching 7,495 metric tons), according to the Hong Kong Merc. In fact, China accounted for nearly 23% of global silver consumption last year. As gold pared its gains with Asian traders, it took profits from the yellow metal to a fresh record high of $1,623.49/oz. Spot gold is at $1,611/oz, up $10.70 from its previous close but $12.49 off its record. Further, oil prices will continue to go up because the USD is being devalued by the very policies of this Administration.

The question to any investor still in doubt, is it possible to pull the US out of the debt? Yes, but it will take much too many years that not even our grandchildren will see. With this last ditch effort again in the debt standoff, damage has been done to US fiscal reputation as well as to every individual watching the stupid blunders in the present global economic intercourse. Bipartisan or whatever type of solution, it will only be temporary. The global financial situation is one that cannot be fixed anytime soon. Defacto default via debt ceiling increase or default, both ways gold is going a lot higher. “Sophisticated investors are investing in gold , silver and platinum to protect their assets”, says Regal Asset Team of Analyst.