Monday, November 21, 2011

As the Super Committee fails to come up with a plan, the end result is good for gold

With the Congressional 'Super Committee' set to announce its failure to come up with an agreed upon plan for cuts in the budget and federal spending, the one victor in this debate is none other than gold.

Washington's latest fractious effort to come to grips with its mounting debt looks set to end in failure today as negotiators look set to announce they have failed to reach a deal.  The Congressional ‘supercommittee ‘charged with cutting the US government's crushing $15 trillion debt looks set to admit failure which should support gold. - Goldcore via Zerohedge
Gold has always been a long term forecasting metal, which tells the reality of a fiat currency.  As the dollar has gotten stronger recently, gold has lost nearly $80 from its recent support.  That will change in the future however, as inflation and a continued devaluation in the dollar, thanks in part to the Super Committee's failure to halt out of control spending, will lead to mass inflation, and a supersonic rise in gold values in the future.


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