A Tarnished Dollar Will Put The Shine On Gold

Read this remarkably prescient article by Frank Giustra on the topic of the tarnished USDollar and the shine in gold.  It's prescient because of the date at the bottom of the article:  December 19, 2002.

http://www.gold-eagle.com/editorials_02/giustra121902.html

I'm going to guess the price of gold had rallied to approximately $300/oz. off its lows of $250 in 2002.  With hindsight, his call was spot on.

Another tragically comedic reference is this:

Meanwhile, fiscal budget surpluses are a distant memory, with this year's deficit expected at more than $150 billion. With the prospect of "war on terror" costs, war with Iraq expenses, talk of permanent tax cuts and a slowing economy (read: lower tax revenues), the U.S. government will have no choice but to continue to issue debt at a dizzying pace for years to come.

 Sound familiar?  $150 billion?  The current Administration and Congress have been running deficits of $1.5 TRILLION annually.  It is no coincidence that as America's debt and deficits climb this slippery slope, the price of gold is joined at its hip.

No, gold is not a bubble.  It is the US government's finances (and its Treasury bonds) which are bubbles.  That--and human stupidity.