The gold price should skyrocket as nothing has changed in Washington DC.
The bums in Congress could care less about the fact that their spending plans that keep increasing will not work as Ron Paul explains why:
Heck, they don't even bother to read these huge spending bills that they vote on. Amazing! They are reckless and out of control. The federal government is broke and they have to borrow all these extra dollars they plan on spending. There is not enough savings in the world, literally, for them to borrow. They will have to have the dollars created out of thin air by the Fed. The numbers are getting huge.
John Williams of ShadowStats.com:
“What promises hyperinflation this time is the lack of monetary discipline formerly imposed on the system by the gold standard, and a Fed dedicated to preventing a collapse in the money supply and the implosion of the still, extremely over-leveraged domestic financial system.”
“The limits to the unlimited abuse of the debt standard are particularly evident in the GAAP-based financial statements of the U.S. government, which show the actual federal deficit at $4.0-plus trillion for 2007 alone, with total federal obligations standing at $62.6 trillion. With no ability to honor these obligations, the government effectively is bankrupt.”
"Although the U.S, government faces ultimate insolvency, it has the same way out taken by most countries faced with bankruptcy. It can print whatever money it needs to create, in order to meet its obligations. The effect of such action is a runaway inflation - a hyperinflation - with a resulting, full debasement of the U.S. dollar, the world’s reserve currency.”
“Oil prices are near historic highs, the dollar is near historic lows, and money growth is at an all-time high. The near-term outlook for all three is for new record levels and for extremely strong upside pressure on U.S. inflation. … gold prices should continue setting new historic highs.”
“The difference is in accounting … for unfunded Social Security and Medicare liabilities.”
“Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than Social Security and Medicare obligations, the government still would show an annual deficit.”
“U.S. federal obligations are so huge versus the national GDP that the country’s finances look more like those of a banana republic than the world’s premiere financial power and home to the world’s primary reserve currency, the U.S. dollar.”
Peter Schiff's reaction to Obama's state of the union address:
Peter Schiff explaining why Obama is not causing change, but is causing continuation of what TPTB (The Powers That Be) want, the same stuff as under the Republicans. The Puppet Masters just changed some of the puppets.
Human nature being what it is people in power will do everything they can to counter act the deflation (contraction of the "money" supply) going on due to debt repayment and debt default. The gold and silver prices will go up due to fear as well as greed.