A Quote From Our Latest Issue

What Is Missing From 2013 - So Far?:

There is one fact about global financial "management" which has been TOTALLY off the radar screens of the world's markets and the world's media ever since December 31, 2012. That was the day when the US Treasury officially "froze" its debt "subject to limit" $US 25 million below that limit. On December 31, 2012, the official limit on Treasury debt was $US 16.394 TRILLION. Just over a month later on February 4, 2013, the Treasury's debt "limit" officially ceased to exist. Under current US law, a new "limit" will be imposed on May 18 - at whatever the official Treasury debt "subject to limit" happens to be on that date.

The Treasury website still shows the "limit" at $US 16.394 TRILLION. It also shows the actual "debt to the penny", as of April 11, to be $US 16,808 TRILLION. Since September 30, 2012, this debt has risen by $US 742 Billion. It was officially frozen for the entire month of January. Since the debt limit was declared "temporarily" null and void on February 4, it has risen by $US 414 Billion. The result is that there has been no repeat of what happened in July and August 2011 when Gold rose from about its present levels to an all time high close of $US 1892. Late last year and on into the first month of 2013, the Gold prognosticators (like Goldman Sachs) were expecting that there would be a repeat performance. That is why many of them were predicting plus $US 2000 Gold before the end of this year. We see no such predictions today, because any debate or even mention of the Treasury's debt "limit" has been sunk without trace.

The possible reinstatement of a Treasury debt "limit" is still five weeks in the future. So is the possible "debate" about raising that limit once again. Central bankers and government officials all over the world, not just in the US, remember the last big US "debt limit" debate with as much if not more distaste than they do the financial meltdown of late 2008 - early 2009. NOBODY wants to talk about a repeat. But they are preparing for it, just in case. You saw that preparation this week, on the precious metals paper markets.