gold heading to $4300, page-51

beerme, you do make a good point there.

I have read a report which predicts that the US will go into default in summer 2009, it was thoughtfully posted on HC.

This would send gold up on fear, not inflation. With a new president, I think other countries will try to work things through, as opposed to smashing the US all they can.

The current deficit is workable, and the US can pull through it with stringent policies. They will probably have to put the medicaid program on the back burner, and Obama's promise to withdrew troops should help.

A default would occur when they are so far in debt that they cannot pay the interest. I think a US treasury default is unlikely.

A currency crisis and strong inflation on the other hand, is likely.

A Comex default is unlikely - apparently the Rothschild family owns 99% of the gold in the world privately. Only 1 % is in circulation. They could easily flood the market.