8.3.11 -- Out-of-control debt and gold prices

Gold prices shot above $1,665/oz. Wednesday on safe haven buying amid rising debt and economic uncertainty. Gold last traded at $1,661 an ounce, silver shot up to $41.73 an ounce.
"GOLD PRICES SPIKE AS RECESSION WORRIES SPREAD," says TheStreet.com.
Gold prices closed in on $1,700 an ounce, as worries that governments won't be able to grow their way out of debt caused a rush into the safe haven asset.

"GOLD GOING TO $2,400 AN OUNCE," SATC CHAIRMAN CRAIG R. SMITH told the Common Sense Coalition radio show today. "We are in a recession...common sense tells Americans they can't spend more than they earn or they go bankrupt. Governments can do it for a while, but eventually face the consequences of a hyperinflationary depresson."

"GOLD TO HIT $2,000 BEFORE YEAR END," reports London Telegraph.
Last week's events on Capitol Hill in the US were very damaging. After we abandoned the gold standard, the dollar is now the globe's reserve currency, and US politicians decided to play a game of chicken with the debt ceiling. There is also an uncanny correlation between the gold price and the US debt ceiling.

"GOLD TO HIT $3,000 IF US KEEPS SPENDING", concludes FOX Business.
Gold could hit $3,000 an ounce in the future, almost double its current per-ounce prices, if the U.S. doesn't cut spending and stop flooding its economy with cheap dollars."