Posted on 04/24/2011 5:56:00 AM PDT by Oldeconomybuyer
Gold prices shot up to a new record of $1,512.50 an ounce in New York late on Friday, posting a record weekly gain and maintaining a six-week winning streak.
While a lot of gold investors are laughing all the way to bank the world over, gold's super cycle rally could have ominous meanings for the US economy.
Analysts have pointed out that gold's advance into what is termed as a super cycle does not bode well for the US economy.
A sustained gold and oil boom indicates that the dollar is slipping into grave danger and the economy closer to collapse, according to Daily Markets analyst Michael Snyder.
"... when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse," Snyder wrote recently.
He explained that when the gold and silver prices soar, it indicates that investors everywhere in the world are losing trust in the dollar and the U.S. government treasuries. And they seek out something they can trust more.
"The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money." And he says the rest of the world is now seriously doubting the sustainability of U.S. government debt.
(Excerpt) Read more at ibtimes.com ...
Excellent points.
Hey, Norm!
It’s the same thing that kept the people calm on the Titanic until it was too late. “This ship is unsinkable. We all know that.”
It’s the same thing that kept the people calm on the Titanic until it was too late. “This ship is unsinkable. We all know that.”
“Hey, what’s with the firecrackers, and the guy shouting Allahu something?”
“I guess they must not have enough passenger coaches for us refugees, so that’s what these boxcars are for.”
“Wow, these pictures of the tsunami will look cool on my Facebook page.”
“What a joke! All they have are spears and arrows.”
“The dollar has never failed because it’s backed by the US government.”
“Say, Thag ... wall of ice closer today?”
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