It’s broke, so don’t fix it.
Well, it is options expiration day for gold and I must say that it is incredibly telling to me that gold remains above $1,600. Right now the widget on the desktop shows the yellow metal at $1,612.70. Silver’s spot price is $40.46. Also amazing.
Debt talks are still in the works but I don’t believe the hype that it is the talks that are keeping gold and silver up there. Oh sure, there is a percentage of players out there that have entered the market over the talks, but it’s not the talks, it the attitude of the majority of politicians in our government towards the debt ceiling. That being that it will be raised. That the country must increase it’s debt load. Debt, not the talks, is what is driving gold up. Global debt. US debt. Household debt. So much debt that if they were going to give debt its own spot on the periodic elemental chart, its atomic weight would create an imbalance in our solar system throwing all the planets into chaos.
Okay, yeah, that was a bit of hyperbole on my part but dang it all, this is insanity to me. Do you realize that we are worried about loosing our oh so great credit raiting because that affects how much money we can borrow? We’re supposed to be a nation that creates wealth, not beggars our brothers for it. Besides that, these credit agencies have gotten things wrong time and again over the last several years anyway, so what does it matter what they think?
Okay. Enough ranting.
Here’s some links for you to think about today:
May Case Shiller Composite Misses Expectations, Yearly Drop Biggest Since November 2009 <- @fuTuRe_sHOcK twittered this link.
Rhode Island city asks retirees to cut their pensions <- Sacrifice, sacrifice, sacrifice.
Running out of Runway <- Good article. Here’s a quote that jumped out to me:
According to Geithner, 80 million checks a month are sent out by the government. The U.S. borrows 42% of every dollar it spends, and a short-term default to some will happen.
Live with Grandich <- This is an interesting interview from Peter Grandich I’m currently listening to as I type.
Broke! 10 Facts About The Financial Condition Of American Families That Will Blow Your Mind <- Speaking of Grandich, here’s an item he noted on his blog that is worth looking at.
Ed Steer has a great list of items today: End Price Suppression and Let Gold Rise to Re-liquefy the World: Murray Pollitt
The Debt Crisis: Stupidity Reigns Supreme <- Worth reading. Here’s a snippet:
It brings me great joy that another record high in gold was greeted with yawns. Without popular media frenzy there is no bubble, period. It is just not time yet.
Uncanny: The Price Of Gold Rises In Direct Correlation With The Debt Cap <- Graph pretty much says it all.
Get Smart (About the Price of Gold) <- Interesting blog post from a jeweler’s perspective.
Circulating $1 Coin Direct Ship Rolls <- How ironic. The mint says they are no longer allowing people to buy it’s $1 coins with credit.
Government Unemployment Watch: USPS To Close Up To 3,700 Post Offices <- the jobs continue to be shed.
Debt Debate: What Government Is <- Something I think very few really understand anymore.