Gold Moving Higher In Asia In Early Trading

Looks like some of the drop back is from the dollar gaining strength. It may be an interesting evening! I would love to see gold hit $1625 by the time the stock market opens and watch all the talking heads crap their pants!

At least gold has a new high to fall back from!

I think gold is moving higher because neither sides were able to reach some sort of agreement on the debt limit.

According to a couple of articles I read this morning,some of the rise may be due to the potential problems with implementing the Greece bailout. Ya know,sometimes the best laid plans of mice and men often go awry!

I heard that as well.

Personally, I think that it will be good to stop all this can kicking down the road, realize that we are well and truly out of road, and stop making borrowing huge sums of money so darned easy. Because borrowing is so easily done, no one in DC thought anything of just doing more of it to "solve" our financial problems. This is not a solution, it is a delaying tactic. Like all other problems where people delay fixing them, they just keep getting worse and worse until they are completely unmanageable.

Imagine if you felt sick, went to your doc, and he says, "Take some aspirin and don't worry about that lump on your body. Take as much aspirin as you want for the pain. If it causes BIG trouble in a few years, we'll worry about it then". Huh? Funny how putting financial behavior in physical terms makes it so clearly ridiculous.

I see and hear on TV that if we do not borrow trillions more to pay off the interest on the trillions we've already borrowed, we will face higher interest rates. Well, GOOD! We've needed higher interest rates for a couple of years now and Bernanke is preventing them from happening. It SHOULD be more difficult to go into debt, not easier. Savings SHOULD be more valuable and not less. Making something easy and convenient only guarantees more of it, not less. The spending orgy is over. It is time to clean up after the party.

Isn't it funny that no bank will have a person as a customer if that person handles their money like the US government? Imagine walking into your local bank and asking for a BIG loan. When they ask about your financial condition, you tell them that your income is declining, your bills are rising, and you owe $45,000 to other creditors. Think that they will loan you ANY money? Nope, they won't, and they will be right not to do so. But... oddly enough... Uncle Sam can still borrow as much as he wants and he IS in that same condition if you multiply it out by 300+ million citizens.

If they raise the interest rates they will actually have to pay China INTEREST on the hundreds of billions of dollars that they've loaned our nation. The fed is the only other large buyer of t-bills so they'll just rip us off some other way to get the Rothschilds and the rockers lees their payback.

I loved it when Dr. Paul asked Bernanke if he thought gold was money and said to Bernanke, If gold is just another commodity then why doesn't the federal reserve hold onto diamonds?.