Gold is approaching $1300 an ounce for good reason. The Obama Administration has flooded the world with greenbacks and Treasuries, global investors have little confidence in the management of the U.S. economy, and investors have taken refuge in gold.
Since President Obama took the helm, the U.S. trade deficit increased 60 percent. At more than three percent of GDP, it drains off more demand for U.S. made goods and services than the President's stimulus spending has added.
America's chronic trade imbalances stem from dysfunctional energy policies imposed by Democrats in Congress, and continuing tolerance for Chinese mercantilism. As the U.S. economy recovers, oil and Chinese consumer imports rise, choking the expansion-that's why demand and economic recovery are flagging, stocks can't sustain momentum, and industry won't invest or add jobs.
Democrats in Congress insist on energy policies that limit domestic oil and gas production, and rely on higher prices that instigate conservation. Those have failed to stem dependence on imported oil, the outflow of dollars, and the chokehold Middle East investors, and now China, have attained in global capital markets and on U.S. government finances.