What Happened To Reality? Posted by Adam King on December 09, 2008
What Happened To Reality?
December 8th, 2008 – As a result of more planned government spending the DJIA sits at 8,934.02, an increase of 3.46% for the session. Are investors really sitting around and rejoicing because we plan to pile more on top of our already staggering deficit? Counting Medicare & Social Security liabilities due to the boomers our total debt is over 100 times our GDP. So, we could get out of this mess in just 100 years if we keep producing everything we are producing without spending a penny or consuming any items for the next 100 years.
Weren’t we all taught that if we had too much debt that we had to cut expenses not to increase spending? With all this hoopla over more spending, the gold spot price sits at $772.40 with the bullion adding a gain of 2.29% for the session and the common date certified gold coins rising between 2.54% and 4.7% with the latter returns going to the higher graded counterparts.
With president elect Obama, vowing to increase spending on our infrastructure, it seems like he is leaning towards a Depression-era approach to solving our current financial crisis which could benefit us in the long run. Bailing out companies that may ultimately fail in spite of bailout funds will leave us with a zero return on investment. At least with the Obama’s Depression approach we have something to account for all the spending at the end of the day. Happy gold investing and be sure to buy only certified gold products.
Senior Gold Specialist John Halloran