Thursday, July 14, 2011
Gold And Silver: FEAR FACTOR
James Turk: just “several more days of silver in the 30s”
“One never knows exactly how the markets will unfold, but my sense is that we only have several more days of silver in the 30s,” Turk told King World News. “Once silver clears $38 on a closing basis, you are going to get back into the mid 40s in a heartbeat.”
“Eric this is the start of the next big leg higher in the precious metals,” suggested Turk. “We’re at a new record closing high in gold today, that is extraordinary considering it is happening against the headwind of a stronger dollar. There is an important message here, Eric, money fleeing the Euro is not just going to the dollar, it’s flowing into the metal of kings.”
“People are recognizing that the only true safe haven is the precious metals,” said Turk. “There are still so few people talking about gold and silver having an explosive summer. The only place I’ve heard it is on KWN. The fact that there is still so little bullish sentiment just reconfirms my view that gold and silver are ready to rocket higher.”
Moody's puts U.S. ratings on review for downgrade -Reuters
S&P warns it may downgrade US credit rating- AP
US Default Risk Jumps To Highest Since February 2010 On Debt Ceiling Worries -Zero Hedge
Debt ceiling: What happens if it isn't raised? Yahoo
Tim Geithner Warns On Debt: 'We Are Running Out of Time'
WASHINGTON -- With members of Congress stuck squabbling over a debt agreement, Treasury Secretary Tim Geithner bluntly warned them Thursday that time is nearly up.
"We have looked at all available options, and we have no way to give Congress more time to solve its problem," Geithner said at a Capitol Hill news conference. "We are running out of time."
The Treasury secretary has warned that the United States won't be able to pay all of its bills after Aug. 2 if Congress doesn't raise the cap on its $14.3 trillion debt ceiling.
And the consequences would be catastrophic, Geithner has warned, starting with interest rates spiking on U.S. debt and the government having to decide who it won't pay, from senior citizens to the unemployed, to government contractors and whole branches of government. Many economists fear it would spark a new recession.
"The eyes of the country are on us, and the eyes of the world are on us and we need to make sure we stand together and send a definitive signal" that the nation will avoid default, Geithner said, adding that the nation also has to "take advantage of this opportunity to make some progress in dealing with our long-term fiscal problems."
Tim... I hate to break the news to you, but the country defaulted on it's debt LONG AGO. Borrowing money to pay off debt is hardly avoiding default. If you don't have the money to pay...you are in default.
The can has reached the end of the road.