Debt Increased $203 Billion in Oct.--$650 for Every Man, Woman and Child in America
(CNSNews.com) - The federal government’s debt increased by $203,368,715,583.63 in the month of October, according to the U.S. Treasury.

That equals about $650 per person for each of the 312,542,760 people the Census Bureau now estimates live in the United States.

At the end of September, the total national debt stood at $14,790,340,328,557.15, according to the Bureau of the Public Debt. By the end of October, it had risen to $14,993,709,044,140.78.

The debt increased far more this October than it did last October. Between the last day of September 2010 and the last day of October, the debt rose from $13,561,623,030,891.79 to 13,668,825,497,341.36—for an increase of $107,202,466, 449.57.

October is the first month of the federal fiscal year. If the debt were to increase by an average of $203 billion for the remaining 11 months of the year, the national debt would increase by $2.436 trillion for the year.

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My comments: Rest assured that as long as we continue to increase debt, gold will continue to climb. Since there appears to be no political will to reduce the debt, then it would stand to reason that there is no end yet in sight for gold's ascent.

In addition to the above article's implications for gold, I would like to point out that deficit spending is what creates inflation: More and more dollars chasing the same amount of goods. Therefore, it takes more money to buy the same amount of goods. This is a hidden tax that the public does not perceive. Said another way, the government just spent $650 of every man, woman and child's wealth in October and no one even raises a voice in protest. Why? Because American are ignorant of the implications of deficit spending to them personally. They think it is someone else's problem. They couldn't be more wrong.

Now again, back to gold, this is why those who understand these implications have traded in their dollar based assets for gold. Gold can't be created out of thin air like paper assets. It can't be de-based by politicians. In fact, gold is the only protection available to protect you from the politicians. The smart money is in gold, as it is the only investment available that is increasing at a rate greater than our purchasing power is decreasing.

Far from being a "get rich quit" scheme, gold simply allows one to keep his head above the water in the ever-rising sea of paper money inflation. All other assets are anchored to the bottom of the sea, therefore GUARANTEEING that the holder of those assets loses wealth over time.

When clients tell me they want to invest in a "guaranteed" investment, I tell them to invest in anything other than gold because all other investments are "guaranteed" to lose over time.