Kudlow’s Money Politics

Larry Kudlow’s daily web log of matters political and financial.

Do You Think Gold Might Be Telling Us Something?


In case you missed it, President Obama was out and about yesterday pitching $250 rebate checks for Medicare prescription-drug coverage. At the same time, gold prices were roaring ahead, hitting a record-high $1,245 an ounce. So let me ask: Is there a link between the government doling out even more budget-busting benefits to the elderly and the skyrocketing gold price?

Or look at a new Treasury report to Congress indicating that the U.S. debt is expected to soar to nearly $20 trillion by 2015. How about that? Do you think this latest mind-blowing multi-trillion-dollar debt projection might have something to do with the soaring gold price?

And don’t forget that the Congressional Budget Office just increased its Obamacare cost estimate by $115 billion. That brings the total cost to more than $1 trillion in the first ten years. Think there might be a gold connection?

Big-government spending, big-government borrowing, and an ultra-easy-money Fed for as far as the eye can see. And gold prices shooting to the moon.

Do you think there might be a connection? Maybe? It’s called cause and effect folks.

Here’s another question: What follows trillions in spending and borrowing?

Answer: Quadrillions.


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