The gold price is going to soar to US dollar prices that most people have never even dreamed of yet. That is because the US has so much debt and unfunded liabilities that the US federal government has no "money" to pay for. Nor does America have the savings to pay for. Most Americans have been dumbed down so badly by government schools, are so complacent that they have no idea of what they are facing and their government is not about to lay the bad news on them.
Most Americans have no idea what their Federal Reserve Bank is for, the damage that it has **already** done (in combination with their US Treasury Department) nor that it is screamingly illegal, un-Constitutional, the Constitution being the law of the land. Now a days, most Americans simply are ignorant of the Constitution, therefor ignore it, and are about to pay a massively huge price for their ignorance and complacency.
They do not know that the only point for any government to have a central bank is so that the government can create out of nothing more of the "money", "currency", or in reality tokens that the country's government uses for its own use, virtually for free, like buying votes.
The US since 1944 is the first country in the history of the world whose "money" or "currency", tokens really, are central bank's reserves, is forced on many countries for payment of their goods and natural resources, like oil. A huge advantage over all other countries in the world. This can't go on for ever; and for how long is the rest of the world going to sell the US things of real value for US dollars that are created out of nothing, that America did not work for. The total amount of those goods and services, the trade deficit, keeps growing year after year. And the annual deficit keeps growing, never mind the overall total.
Since there are no longer any free markets left in the US, just what is it that it has going for it besides the ability to create US dollars out of thin air?
During the last half of 1929 (just before the start of America's Great Depression) total US debt was about 270% of GDP, and there were no unfunded liabilities. Right now in 2006 total US debt is about 400% of GDP, and there is about $57 trillion of unfunded liabilities. The US can not afford higher interest rates; but, America is going to get them anyways.
Got enough gold and silver? Governments might be able to create their tokens out of thin air, here is an example:
(click on the M3 chart to see it completely) but they can not create gold and silver out of thin air.
Bernanki is just a puppet. He will do what he is told to do, like Greenspan did.
Greenspan was just a run of the mill lousy economic consultant whose business was just about dead. He was basically out of a job till the head of the Fed job came around.
""Weimar Bernanke", the man has no business experience, no banking experience, no financial market experience, yet is named to the most important central bank post on earth." - Jim Willie CB
It is too late. The US has too many obligations without the wealth (net worth) to go with them. The only thing the country can do is hyperinflate the US dollar to make it appear as though it is meeting its obligations. Why do you think the "Fed" has stopped publishing the M3 "money" supply numbers? The US dollar is going to become more cheap than dirt cheap which is why the US dollar gold price is going to soar like a rocket.
John Conolly, treasury secretary in the Nixon Administration, put it bluntly in 1971 when the US decoupled (broke its word/promise) the dollar from gold: “The dollar is our currency but their problem.”
"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." - Ben Bernanke remarks before the National Economists Club, Washington, D.C. November 21, 2002