Thursday, November 5, 2009

Gold Nears $1,100 & More Deficit Spending

The price of Gold has reached a new high of just about $1,100 an ounce. This is happening because the dollar continues to collapse. Gold for December delivery rose to as high as $1,098.50 an ounce before settling up $2.40 at $1087.30 on the New York Mercantile Exchange, adding to big gains the day before. News that India's central bank bought nearly $7 Billion worth of Gold from the International Monetary Fund triggered a frenzy of buying that continues to reflect a weakened dollar. The price of Gold is a vote of NO CONFIDENCE in the Obama Administration's Economic Plan.

The dollar is collapsing because President Obama and the Democrat Socialists that control Congress continue massive and unprecedented deficit spending and the Federal Reserve is printing money to cover it. Further, Obama's HealthScare Plan will result in Trillions in even more deficit spending. Don't believe what you hear from the spin miesters in the Obama Administration, just look to the markets to better understand what is happening. Obama and his brainiacs project deficits of about $10 Trillion in the next ten years. If Obama and Democrat Socialists enact all their Socialist schemes, the deficit will be ten times that number if history is our teacher. CAP & TAX will result in the loss of millions of jobs and therefore significantly less tax revenues to the federal government and higher deficits. Of course, that fact has not been factored into Obama's numbers.

While this is occurring, the Democrat Socialist controlled Congress voted to extend unemployment benefits by 20 or more weeks, which will add $2.4 Billion to the federal deficit. In addition, the $8,000 Homebuyer's Incentive was extended until April 30, 2010, which will add $10 Billion to the deficit. In and of themselves, these extensions may make sense, particularly the additional unemployment benefits; but when combined with billions of dollars of other deficit spending that makes no sense, this is just one more step toward the bankruptcy of the United States. It would have been better to re-allocate monies from the $780 Billion SwindleUS Plan, some of which are yet to be spent, rather than add even more to the deficit. Oh well, a billion here a billion there; but whose counting anyway, certainly not anyone in Washington DC.

We have got to take back our country. The recent election of Conservatives was encouraging related to upcoming elections in 2010. We need to elect grown ups with real life experience and send them to Washington to clean up the financial mess Obama is creating. And, then in 2012, we must send Obama back to Chicago, or any other place he can do no more harm, to end the fiscal insanity and all of Obama's Socialist Schemes that will destroy our country. We can do it. We will do it.

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