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Originally Posted by elaine 1970  most analysts predicted it will pass $1,000.00. i said, it will hit $1,500.00 this year. |
We'll see if the Fed lets that happen. But they haven't been too good at practically anything else they have tried to do lately either. For those of whom would wonder why the Fed would want to keep money out of gold, think about this...
Money in gold is money out of the dollar, out of government bonds, out of banks etc.
Fear that drives up gold prices also has the effect of creating panic amongst depositors in banks, foreign governments holding US debt, etc. China has been slowly but surely increasing it's gold reserve while others, notably in Europe sold off a lot of theirs.
China is holding a huge amount of the US debt, and if they unload it back on the Federal government, the government is effectively bankrupt. China doesn't have to detonate a nuclear bomb to do the USA in, all they have to do is call their loans due.
