For the past several months, we have seen increasing coverage of the "Fiscal Cliff".
But amazingly the Debt Ceiling has been ignored by the media. And it's looking more and more like the Fed Govt is going to run out of money by the end of this month. I suspect in the next week or so the media will wake up and begin to give this some coverage.
Last year in August when the debt ceiling was on everyone's radar, the prices of gold and silver ran quite high. I wouldn't be at all surprised to see it happen again. And don't be surprised if we see additional downgrades of U.S. Treasury debt.
Historically the stock market has weakened during debt ceiling debates. I don't see the Republicans as being in any mood to cave in to the Dems and just kick the can down the road. There might be an effort to combine the debt ceiling and fiscal cliff negotiations.
Conclusion: It might be prudent to thin out 10-20% of your CDE holdings and re-direct them to gold and/or silver for the next few months.
p.s. I claim no expertise in political negotiations and their impact on stock market values or on the prices of the metals. Feel free to chime in with differing perspectives and investment strategies. Constructive comments are most welcome.
AGREED! good observations. If we (USA) continue to receive downgrades, I'm wondering if this effects the dollar's global std. status. This would have disastrous results. I have read several opinions by some well respected pundits the USA is ripe for a hostile take over by enemies, I suppose we already have been taken over to some degree by the Arabs and Chinese with massive land holdings and veiled large USA company ownership by both.
I can't believe minorities, women, and 18-29 yr olds re-elected this pres under these circumstances. We are just begging for a total collapse. I hope the pres. and congress can move towards moderation so that this fiscal cliff fall can be avoided with effective policies.
I just wish we could get back to looking for war(s) on our credit cards as our country spirals down. Wall st. bailouts, auto manufacture bankruptcy, real estate in the toilet. Man that was good times. We only had to raise the ceiling 7 times to "stimulate and survive the economy". My favorite headline was " debt ceiling passes 10 trillion and no one notices". Acceptable as it was during Reagan presidency. If you haven't figured it out look back at a 5 yr chart. Yes we suffered a horrific terrorist attack which took 3000 plus and injured many more. Under Clinton's term we suffered terrorist attacks, cole, Oklahoma city, etc, I believe 8 in total claiming over 7000 lives. And 23 million jobs were still created along with budget surplus and debt was paid down. The economy didn't faulter. The right obviously has a loyal following. The had ridden the bus right into the toilet only 4 short yrs ago and stand tall and proud about it.
As soon as the serious analysts called this "fiscal cliff" situation refering to bond saturation and national credit degrading...........the wizards of Id decided to morph the spin to have the "cliff" refer to the debt ceiling. And we all know that can be raised to then the new spin is "Oh so the cliff has gone away.........they raised the debt ceiling........sure glad that is over".
And you see how Betrayus bails out with some stupid phony reason, like cover up the crisis with another non-crisis, some ex-usual banter now about huh. At least it was with a woman so now he's a hero for old world values. Guess it was hard to get time off for the scheduled vacation with the trials for Libya covering up.
Meanwhile back on the farm the GLD and SLV have nice breakout charts showing serious accumulation going on while many goldstocks just got shorted hard today going into the close. These could be trapped shorts. And your favorite CDE, the race horse with a limp because some entity threw a rock at it because it was in the lead.
Wildgold, your comment about the debt ceiling not being an issue until after the new year would have been correct if you had written it a few months ago. BUT, on October 31, 2012 our federal debt subject to the legal limit was $16,222,235,000, or just $171.765 billion below the $16,394,000,000 debt limit. In October alone, the U.S. added $195.214 billion to the federal debt/ national debt. If we have the same numbers in November, then we will have breached the debt limit before the end of November, hence my comment. Maybe we'll get lucky and see an unanticipated reduction in Federal Govt spending this month, or an increase in tax revenues (unlikely). But given that our annual deficit in 2011 and 2012 is averaging about $120 billion per month, I don't think it's prudent to go forward with your expectation that the debt ceiling isn't an issue until after the new year. So you think politicians shouldn't begin to debate this issue until after the new year?
p.s. A few days ago you accused me of being a little pompom girl (I'm assuming you were calling me a CDE cheerleader) and a fraud. Now I suggest thinning out your CDE position, and you think I'm a fraud here too?!? Your posts across ALL the yahoo message boards would have more value and credibility if you displayed some knowledge or mastery of something rather than just posting cheap shots.
they are in total disarray and have lost touch with the constituents of America but in spite will stick to partisan tactics even stronger. The leadership failed miserably in this election and instead of gaining ground in very vulnerable senate seats, they lost some with poor budgeting, poor platforms, and poor candidates. The current RNC leadership needs to step down and give some new blood a chance!