Federal Debt Prediction: Dollar Bearish, Gold Bullish

Mark O’Byrne submits:

Gold: Gold traded positively overnight and into early morning trading and currently trades at $948.50/oz. A cold warning concerning the US’s worsening debt situation was released yesterday through the federal debt prediction. Figures revealed a total prediction of its 10-year deficit to be $7,14obn. That’s $2,000bn more than that forecast back in February which is dollar bearish and gold bullish.

Ben Bernanke’s (aka Helicopter Bernanke) reappointment as Federal Reserve Chairman looks likely to result in more massive shoveling of money into the financial system which could see currency and bond vigilantes become nervous and lead to a falling dollar, higher interest rates and higher inflation or stagflation.

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