"...probably worse than 2008."
July 5, 2011, 12:01 a.m. EDT
Gold is best debt-crises defense — just not yet
Commentary: U.S., Europe will continue to inflate way out of trouble
By Gil Morales and Chris Kacher
PLAYA DEL REY, Calif. (MarketWatch) — Given all the possible permutations of the continuing debt dilemmas in both the United States and Europe, finding a way to profit from the potential effect they’ll have on the markets is a complex challenge. Indeed, the current global landscape is fraught with so many cross-currents that calculating potential causalities is becoming less of a science and much more of an art.
In the U.S., failure to raise the debt ceiling will end the country’s ability to continue its “Ponzi scheme” of issuing ever more Treasury debt to cover principal and interest payments on existing debt.
The debt situation also leaves the dollar in a growing state of uncertainty. If Congress is forced to make serious cuts in the Obama administration’s proposed budget, it should strengthen the U.S. currency — but further legislative inaction and the very real specter of a U.S. debt default could just as easily provoke a run on the dollar.
In Europe, things are even worse.
Full story: http://www.marketwatch.com/story/gold-is-best-debt-crises-defense-just-not-yet-2011-07-05?Link=obinsite
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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