Despite massive year-end market intervention, gold rose again for the 12th straight year.
Gold rose, capping the longest annual gain since at least 1920, on renewed concern that central banks from Europe to China will take steps to spur economic growth and as U.S. leaders near a budget deal.
Gold futures for February delivery gained 1.2 percent to settle at $1,675.80 at 1:41 p.m. on the Comex in New York, while prices for immediate delivery jumped as much as 1.5 percent. Through Dec. 28, the metal had slumped for five straight weeks as the deadline for the so-called fiscal cliff of automatic tax increases and spending cuts due to take effect tomorrow loomed. President Obama said today at a White House event that an agreement was “within sight.”
Gross: 2013 Fearless Forecasts: 1) Stocks & bonds return less than 5%. 2) Unemployment stays at 7.5% or higher 3) Gold goes up……
“The two sides also appeared to have reached consensus on unemployment benefits, with Republicans acceding to Democratic demands to keep benefits flowing to the long-term unemployed for another year. Medicare payments would not be cut for doctors next year, and the cost of preserving those programs would not be offset with other spending cuts.
However, negotiators were still at odds over how to handle the automatic “sequester” spending cuts, which are set to decimate budgets at the Pentagon and other federal agencies in the New Year. Democrats initially demanded that the cuts be delayed until 2015, but Republicans balked, arguing that the cost of any delay should be covered through additional spending cuts.
Instead of delaying the cuts for two years, at a cost of more than $200 billion, Republicans suggested delaying the sequester for three months — at a cost of $33 billion, according to people close to the talks. It was unclear Monday whether the hang-up was the brevity of the extension or the need to identify offsetting spending cuts.”
Walker – Short Term Problem is the Fiscal Cliff – The Long Term is a huge structural Deficit Problem
Former United States Comptroller General, David Walker discusses the final day of fiscal cliff negotiations. Debt accumulating $10 million a minute at $100 Billion a week.
Celente predicts the global financial system will continue to be propped up. Celente says, “The scheme continues to go, the scheme being dumping cheap money into the system to perpetuate an economy”Continue to buy gold and silver because a currency war has broken out.”
from Sovereign Man:
As we slide into the end of yet another year in which the nominal price of gold has posted a positive return, I thought it would be interesting to take a look back on history to get a better understanding of where we are today.
It’s obvious that, for many reasons, the size of the global economy is far greater than it was decades ago. We learn in any basic economics course that, over the long run, enhanced productivity and increased technology drive long-term production gains.
Certainly, an economy can produce more widgets if you’re a lean, mean, automated machine… as opposed to a blacksmith with a hammer and forge….
Why your paycheck is getting smaller, no matter what
For middle class Americans, there may be no escaping higher taxes, come January.
That’s because the government had temporarily lowered the payroll tax rate in 2011 to 4.2% from 6.2%, in an effort to keep more cash in the pockets of Americans and provide a boost to the economy. The tax cut, which applies on the first $113,700 in annual earnings, is expiring in December.
Come 2013, most of the country’s 160 million workers will see smaller paychecks. No one is expecting the payroll tax cut to be extended, even as lawmakers in Washington meet for budget talks to avoid the fiscal cliff….