Submitted by Morris Hubbartt:
Fundamentally, the US dollar is at great risk. Even if politicians make headway in spending cuts in the coming months, it won’t stop the debt from growing. According to CNS news, about 11,000 people sign up for the Supplemental Assistance Nutrition Program (food stamps) every day. As the United States heads back into recession, maintaining a social net will be priority number one.
So, leaders can attempt to make progress, but the debt is now over $16.5 trillion. Unfunded liabilities are more than seven times that amount. A debased currency or much higher interest rates are the government’s ultimate choice.
The fundamental issues that are negative for the dollar are also very bullish for gold. With the long-term trend of gold being up, this enormous symmetrical triangle is likely to breakout to the upside.
A symmetrical triangle is usually formed during a consolidation period. In the case of gold, the consolidation has gone on now for nearly a year and half. The larger the base, the greater the rise out of the bull market consolidation pattern.