http://www.nytimes.com/2011/08/01/us/politics/01FISCAL.html?pagewanted=2&_r=2&hp

Americans will undoubtedly be proud of their hard working politcians who put aside their differences to avoid the "immediate crisis" of a debt default.

Some of the nuts and bolts of the article:

The tentative agreement calls for at least $2.4 trillion in spending cuts over 10 years, a new Congressional committee to recommend a deficit-reduction proposal by Thanksgiving, and a two-step increase in the debt ceiling.

the debt limit would be increased by $900 billion in the first installment, subject to a Congressional vote of disapproval that Mr. Obama would be able to veto. To prevent a default, $400 billion would be added immediately. A second increase of $1.2 trillion to $1.5 trillion would be available subject to a second vote of disapproval by Congress.

Ok, so the Washington geniuses are saying .... through now and the 2012 election, a period of under 18 months, government spending will exceed revenues between $2.1 - $2.4 trillion dollars and over a 10 year period the government will trim spending on average by at least $240 billion annually.

What a move ... spending in excess of revenues has risen by nearly 300% since the bad old days of 2008 from 450 bil to 1.3 tril. and apparently astronomic growth will occur in the latter half of the decade to presumably reverse the deficit and begin paying off debt? Is this credible in any way?

In 2002 I changed my position from believing that gold was arcane and believed that the downside in gold was much less than the downside in other investments. For all the reasons + 1 (the government circus pretending to be doing something) I stand by that position even more than in 2002 despite the fact gold has increased in excess of 500%.

THE BULL MARKET IN GOLD AND SILVER HAS NOT YET BEGUN!

orgy