Our government could end up spending over $23 trillion to implement their current bailout and stimulus package, and this shamelessly irresponsible spending has persuaded many stateside investors to buy gold as a hedge against inflation. The total of $23 trillion could be reached before all bailout measures are discontinued, and this figure does not account for any additional measures that our government may take. A second stimulus and/or bailout would require approval from Congress, but the expedience that was used to approve the first bailout could most likely be seen again. If the costs of all the wars that the United States has ever been involved in were tallied, the total would not equal the amount that our current administration intends to spend on sparking our economy. Much of the $23 trillion has already been spent, never to be seen again. Bailout Special Inspector General Neal Barofsky believes that taxpayers will never again see the majority of the funds from the Troubled Asset Relief Program (TARP), which currently holds over $317 billion in outstanding debt. The entire rescue plan has drawn bi-partisan criticism, because of the extreme degree to which our elected officials have taken this measure. Democrats believe that too much is being spent on big business and protecting those who originally created this catastrophe, and Republicans have contended that the theory of paying off debt with more debt is laughable. White House economists have lauded our current administration's efforts, and these same economists have asserted that over one million jobs have been saved or created by our President's unprecedented measures, but many of our nation's regions appear to be unaffected by any level of federal support.
Our government will most likely continue to overprint the greenback until it stands on the brink of insolvency. At that point, which is quickly approaching, gold and silver bullion may be confiscated to shore up our dollar's value. Until that time, gold and silver bullion are useful for security, which is why so many American investors have decided to buy gold as a hedge against inflation. The amount of money that our government has spent on fixing our collapsed financial system has drastically altered the spending power of our cash. Non-dollar-based assets are strongly recommended when inflationary pressures are high, so investors who want to buy gold as a hedge against inflation are encouraged to do so before the fallen dollar index forces the gold spot price any higher. The current gold price on www.Kitco.com and www.GoldPrice.net is $1061.80, which is a 0.58% increase so far today.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
