gold & the state of the us economy

I posted this on Sunday. Felt it relevant to repost as it will no boubt have a bearing on the price of gold.

Re the state of the US economy.

It has been suggested Pyongyang may burn New York

I would be more concerned about the citizens of New York burning New York.

New York City is facing a possible financial storm. Next year the city faces a six-billion-dollar black hole, with the possibility of 25,000 layoffs of city workers. New York City employs over 250,000 municipal workers. Wall Street is laying off many thousands more, in addition to the 20,000 who have already been laid off.

We see more and more homeless people sleeping on the streets in cardboard boxes. City shelters are now overcrowded, and the problem grows worse by the week. Vacant office space is mounting. Rents are falling. It is being suggested a number of fire stations are about to be closed.

Not a single government official, state or city, has a solution. The city cannot borrow any more money. The state cannot bail out the city, because it faces a budget shortfall exceeding $10 billion. The mayor is warning the city that very hard times are coming. Even now, signs of civil unrest are beginning to surface.

All the signs suggest this most prosperous city is about to go bankrupt.

There is the very real prospect of anarchy spreading throughout the metropolis with young people breaking into stores and stealing everything in sight. Unemployed workers taking to the streets, looting and burning. The National Guard will not be able to handle the roits.The city will spin out of control. A thousand fires could burn across the metropolis.

I hope this never happens, but unless something is done quickly to find a solution to the budget shortfall all this is a very real possibility.

What would this do for the price of gold?

Drafthorse