Picked this up off of an investment site that i follow:

When campaigning for Obamacare, the President stated that it would be "Deficit neutral. Not going to add a dime to the deficit, now or in the future."

Unfunded liabilities in the US, including the $17 trillion added by Obamacare, stand at $119.4 trillion now.

This $119.4 trillion exists on top of the most pressing $15.8 trillion current national account deficit. America finds itself at a very significant stage as interest rates tend to rise after debt crosses over 100% of GDP. A lack of confidence follows in short-order. America and many European countries are truly playing with fire and it all leads to one thing: Inflation. Deflation and default are not options for all current governments in power.

The significance of all this is that it is not sustainable and we all must prepare for a worst case scenario. The Roman Empire suffered extreme inflation as its trade deficits soared, while it devalued its currency by flooding the money supply to pay debts within and outside its empire. Throughout history, inflation and hyperinflation tend to take hold when countries print monies to sustain programs within their own borders. This is what is happening now in America. America is in denial. The truth is that America is essentially broke. Its once strong manufacturing based productive economy has morphed into the American consumer, who, after this latest fiasco, is going to be even more cash-strapped than ever. The government is filling the void of falling tax revenue by money creation in the most dangerous form. Obama has big dreams, with no economy or tax revenue to back it up.

Obama has truly put the cart before the horse this time. He needs to be slashing regulations and minimizing tax increases until GDP is running at 4% or more. Only then should the implementation of new taxes and new unfunded liabilities be placed on the taxpayers and economy. He has a dream that is unachievable given the current economic environment. Perhaps he's just a dreamer looking to create his own legacy - not fully aware of the consequences of his actions. Regardless, the American consumer and taxpayer have nothing left to give and if taxing the rich is Obama's plan, perhaps he should study what's been happening in France in recent years (millionaires have been fleeing the country due to rising taxes and outright class warfare).

As America takes on another burden that it cannot afford, it will not be long before bills come due and the government is forced to run higher deficits.

Friday's action from the EU summit should act as a bellwether to precious metal and commodity trends. Gold shot up $45 an ounce after EU leaders announced their new bailout plans. When push comes to shove, governments will continue to bailout banks and countries by printing more money. The debt super cycle, which coincides with the commodity super cycle, is nowhere near over. This is why we all must stay focused on preserving our capital through hard assets, which cannot be manipulated by government monetary policies.

Gold, precious metals and companies which explore and produce these assets will benefit greatly from this on-going global financial crisis.

jdub