Wednesday, September 17, 2008

How Much Confidence Does the World Have in the U.S. Economy Right Now?

Here's one indication:

Yep, spot gold up almost $90 an ounce in one day. The price of gold is affected by many things, but it most often makes big moves upward when investors panic and want to get into something more "tangible". Even so, a move like this is almost unheard of -- by way of reference, gold went up by a smaller percentage than this on 9/11/01.

Part of the reason for it is also that the US dollar tanked today, reflecting further lack of confidence in our nation's ability to manage its affairs.

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