Gold and the “Fiscal Cliff”

Nov 10, 2012 Letters

Dear Editor,
Now that the United States of America Presidential Elections are over and Honorable President Barack Hussein Obama has been democratically re-elected to serve for four more years in the White House, I wish to extend profound congratulations to him and his family and the entire American nation. I hope that the next four years can shape the world into a more prosperous economic state.
In recent weeks, economists and market watchers have been widely quoted across the world with assumptions that some sort of congressional compromise will be stuck to help to avoid the full impact of the ”Fiscal Cliff”.
What is the Fiscal Cliff?
In simple language, it means automatic spending cuts and tax increases of over six hundred (600) billion United States dollars. Economists of all political persuasions agree that the United States of America is vulnerable and can slip into recession next year if the fiscal cliff is not addressed immediately.
If the delay is too long for a compromise to be derived between the two political parties, severe economic crises will occur right across the world.
Financial market trading will be nervous and volatile in the final months of this year and close attention would be paid to news coming out of Washington D.C. Should there be political gridlock and efforts to derail the compromise, the United States equity markets would react negatively as it prices out the expectation for a Fiscal Cliff Solution.
This would be negative news for the economy and would also keep the United States Federal Reserve’s Quantitative Easing Program full in play. When this happens gold will swing into full gear. The glitter would be so bright it can blind your eyes and can hit the sky.
Some startling statistics of gold reserved by some developed countries around the world are as follows:
Name of Country                                     Qty/Tons
United States of America                            8,133
Germany                                                        3,396
Italy                                                                2,452
France                                                            2,436
Switzerland                                                    1,040
Netherlands                                                      612
European Central Bank                                   502
Portugal                                                             383
Spain                                                                  282
Austria                                                               280
Greece                                                                112

Mr. Nazar Mohamed
Gold & Currency Trader
Mohamed’s Enterprise

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