Gold Price Record 2009
I've noticed the general public have no idea what is happening behind the curtains in the economy, it is unprecedented times, most Investors still do not realize what is really happening here. I think at this point is essential to see the truth and the position of you and your family by the approaching train wreck about to happen.
The smart money like George Soros, John Paulson, and countries like India and China are buying gold. Not only U.S. have been printing fiat currency, Europe and other countries to print trillions of dollars as if it were going out of fashion. If you think that the U.S. is immune all this, you're wrong. The fact that the U.S. has the world's reserve currency and has the deepest and most liquid market does NOT mean you can financial keep writing blank checks to finance its bloated spending.
The CBO (Congressional Budget Office) estimates that the U.S. budget deficit reach a record of $ 1.6 billion in the year ended September 30 and the total 5.1 trillion U.S. dollars over the next five years. The deficit of $ 1.4 billion in 2009 was equal to 9.9% of GDP – the largest part of the economy since the end of World War II.
U.S. not be able to sell bonds as for foreign investors to finance the increased debt. More likely, they will continue printing money. This is the only way they know to ensure the increasing capital that the Treasury can not sell bonds to foreigners. This will cause interest rates rise, bond markets will crash, and inflation will surge.
Europe is now suffering from their own version of high risk as economies begin to fall like dominoes. Recently, Germany, France and the IMF (Fund International Monetary Fund) have agreed to rescue Greece and inject USD 1 trillion U.S. dollars to the euro area to stop the crisis from escalating. Greece finally joined by Spain, Portugal and Italy, debt spreads cancer. The credit crisis has entered a new phase, and sovereign debt markets grow increasingly unstable.
Developing countries are ill with cancer of the debt, governments around the world are desperately throwing money to keep the patient alive, not the solution the real core issue. Even after all repurchases, debtor countries are still looking to secure financing. But every day, the noose tightens only slightly more deflationary. Iceland and Dubai are just small examples of what lies ahead if governments do not reduce spending and control of your finances
The government will not allow anybody no, but will continue rescuing companies and countries at the expense of taxpayers. Government will do all that is less painful in the short term remember that you want to re-election to the next term. It will solve this problem start the printing press and print more, devaluing their currencies waiting the world economy to grow artificially. That's bad news. Devaluation of money reduces the purchasing power and produce long-term inflation.
The Gold prices are increasing because the smart money knows that high debt levels can not last forever
Major central banks of the States U.S., Europe and Japan will not raise interest rates fast enough. They just can not when consumers are not buying and unemployment remains high.
That's why I think all these bugs feed on central bank gold and high prices in the foreseeable future.
I invite you to visit http://www.gambitrader.com there is a ton of educational information mainly based on the financial markets that will help you in your quest for knowledge.
Bruce Nunez from Gambitrader
Gold’s Record Setting Run Fox 2009-10-8.flv
