Gold’s Rise in a World of Debt

Posted by on January 8th 2012 in Bailout, Federal Reserve, General Economy, Gold, IMF, Monetary Policy, U.S. Congress, Wall Street | Be the first to comment!

The above chart is the centerpiece of a presentation by the Bullion Management Group’s Nick Barisheff, who argues that “Rising debt will lead to $10,000 gold.”  And he reminds that “it’s not just the US. Most Western economies have reached unsustainable levels of debt that will be impossible to pay off.”  This is echoed in a comprehensive report by Spiegel on “The danger debt poses to the Western world.” It estimates that world debt at the end of 2011 was $55 trillion, more than double what it was in 2000.  And according to a Bloomberg article, “Governments of the world’s leading economies have more than $7.6 trillion of debt maturing this year, with most facing a rise in borrowing costs.”

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