The news article indicates a reduction of deficits. It is my understanding unfunded spending is set to go up substantially in the next few years so this news is a temporary all is well statement. But I was thinking the 2 or 3 hundred billion building up while the debt clock wasn't should have started this year higher or was that counted last year which was supposed to be a much lower deficit? Did congress ever get their GAAP Budget Report? If these are real numbers expect Obama to pass more taxes and gold to take a hit.
Yeah I expect gold to take a hit as well. It's interesting to see how the market responds to such massive amounts of debt piling up. I agree that this story doesn't take into account the long term implications.
I agree with the statements that gold will take a hit this year. The build-up of debt can have a negative impact on many related areas.Some form of additional income (taxes?) will need to be looked at. I am not sure if congress did receive their GAAP report, should be interesting to find out. Will do some research.
I think gold will take a hit. Gold just seems to have too much uncertainty behind. One of my very good friends tells me to buy gold every day. I tell him "NO" every time. ha ha
I always have at least a little gold in my portfolio. We will unfortunately see more debt and of course more taxes for a while. We are headed in a very bad direction these days, and it seems as though the majority either want it or don't know or care about it.
More taxes seems almost impossible. The rates are so high anyway. I also agree that gold will probably take a hit.
I just saw that gold was trading for about 1300 an ounce yesterday, which is down substantually from the last time I saw the price. It is never a good thing when we are just spending money aimlessly and have nothing really to back up the note. I think we will be in perpetual debt for a long time to come.
Meh.. it is overstated. We have had huge deficits since the early 1980s, and as compared to GDP, they were much higher than today. This isn´t easy economics to understand, but because the US dollar is the default currency of the world, it insulates us against any huge shifts. There are countries like the UK where their deficit is technically smaller ( both in real terms and in % of GDP) but they are at much more of a risk than us because their currency isn´t held all over the world. Or to put it another way. In the USA, we use gold as a hedge against currency fluctuations.. in most of the rest of the world, they hold US dollars as a hedge against their own currencies volatility.. ironic, huh. Political talks about deficit spending and dangers of the deficit are simply fear-mongering to limit the programs of the other party. Now the Republicans are talking up the deficit and how dangerous it is, but when Bush was sending trillions of dollars to Iraq they never mentioned it. When Bush was sending trillions to Iraq, the dems were talking about the effects of the deficit, but now that Obama is spending it on social programs, they are quiet about it. Neither side is really concerned about the deficit, they are just worried about money going to pet projects of the other party ( defense industry vs social programs). We have been talking about the deficit since the late 1970s, back then the fear-monger was the Japan was going to own our country soon.....
Well the way governments works is that they take debt, then use it, take new debt to pay back the old debt etc. It's a way to get "free money" to keep their services and spending up while not overtaxing the people... this keeps the people happy. If they would try to balance the budget you would see spending cuts and increased taxes... a politician proposing that would be destroying his career. And then they just wait for inflation to keep up with their spending. a 500 million debt 50 years ago would have been a lot, but nowadays it's not that much anymore. This whole idea works fine up to a certain point... a point which for example Greece might be hitting soon since the ECB and IMF are getting a bit reluctant to renew their debts and getting money from individual investors is too hard due to the huge deficit.
We are going in a bad direction for a long time, but this is the essence of our society, the rich manage to increase their wealth at the same time that taxes also increase, I wonder if there is a direct relation.
