Gold Print Highest Price Record This Year
Wednesday, July 13, 2011 by Willie Filmore
As quoted by Reuters on Wednesday (07/13/2011), the price of gold reached USD1.575, 79 per ounce. The reason, Ireland and Portugal are struggling Greek-related debt is increasingly worrying.
However, despite these fears, there is also anxiety over the debt burden of the United States. The U.S. Treasury will be forced to meet these debt obligations if Congress does not raise the basic $ 14 debt, 3 trillion. The prospect is considered unlikely, but so far has been a debate
"If America's debt is not renewed within the grace period, or if they have to find ways to pay the debt in the short term, which means it must be positive toward gold," said Mitsui & Co. analyst David Jollie.
"However, if they agree to extend debt without any applicable taxes, means we can be sure there is inflation and will positively affect the price of gold also," he added.
Increasing debt is an unusual step, because it has done 10 times in the last decade. But this time, members of the Congressional Republicans said they would not approve such a move unless the Democrats committed to cut the U.S. deficit.
Democrats support the tax increases and other measures, but the proposal was not supported more Republicans push budget cuts.
75-minute meeting at the White House on Sunday was marked by the exchange of testimonials. President Obama and the lawmakers will hold its third meeting in as many days in the White House to hammer out an agreement.
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