Amidst the increasing calls among statists for increased federal spending, one can practically feel the deep, visceral hatred for gold arising within statists. The reason is that statists know that gold is a communications vehicle that tells people what government officials are doing to their money. That's the last thing that statists want people to find out.
Practically everywhere you look, both the federal welfare state and the federal warfare state are in deep crisis.
For all practical purposes, such beloved welfare-state programs as Social Security, Medicare, Medicaid, and other welfare entitlement programs are busted, bankrupt. That is, there is no reserve fund to make the payments that need to be made to dole recipients. Instead, the federal government collects part of the money to make these payments in the form of taxes. But the problem is that the tax revenues are still insufficient to pay all the dole recipients, and the shortfall is enormous.
Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe's debt crisis and the pace of the global economic recovery.
Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold posted a new intra-day high Friday, when it reached $1,260.90 an ounce. A day earlier, it reached a fresh record high closing price of $1,248.70 an ounce.
Last year, foreign central banks were net buyers of gold for the first time since 1997. India, China and Russia have been the biggest buyers. And more recently, the Philippines and Kazakhstan jumped into the fray with big purchases of the precious metal during the first quarter, according to data released by the World Gold Council Thursday.
*grabs popcorn and awaits gold bubble bursting*ReplyDelete