Another Gold Rush

Over the last two weeks, the dollar has weakened by about 20 percent and gold is up over $100 dollars. That basically means that investors/speculators in the world are now dumping the greenbacks and buying the protection of gold. What that is saying is not good for the United States. The dumping of dollars shows fear in the United States. For weeks, the dollar had been strengthening against other currencies and gold had been falling. But, no longer. The investment community is now seeming to say they don't like all the additional bailout plans. It is no coincidence that the rise in other currencies and the fall in the dollar started with all the talk of bailing out the auto companies. Further, Mr. Obama's plans for another half to three-quarters of a trillion dollars or more in so-called stimulus plans is not setting well. I think the amount of debt that this country is quickly amassing is of considerable concern. And, that concern is driving gold prices up.

As a country, the United States will have accumulated a deficit against this year's tax revenues in excess of one trillion dollars. Mr. Obama plans another near trillion in spending programs and stimulus when he and the Democrats take control. Further, the national debt is ballooning and we are borrowing more and more to cover that debt. In the last two months alone, the interest that we will be paying on our national debt will be at a rate in excess of $18 billion a month; and growing (See Full Story). That means that every man, woman, and child needs to ante up at least $60 a month just to cover the interest on our national debt. We are up to our necks in debt and, possibly, approaching a tipping point where there is no reasonable way to pay everything back. That's why gold is on the way up again and our currency is weakening fast. The world is wondering if we will ever get the money back to pay for it all.