Gold Jumped the Highest in One Day since 1985

Folks, it is as though a spring under the price of the precious metals had finally been released. Perhaps, the boyz have loaded up with long future positions on the metals. It is about time.

Over night has revealed even further advances for both gold and silver. Currently, gold is up against all major currencies. Gold at 873.40 and silver at 12.29 in Asian trading sounds good for the metals. The mining stocks have responded nicely, too. All were up at the close today.

Risk in the world today is driving many people to seek the safety of traditional money: the precious metals. Metals are reacting as they should to the financial hurricanes which have been plaguing us recently.

Think of our Federal Government spending our dollars to effectively buy Freddie Mac and Fannie Mae. Then to buy AIG. Sounds more like we're moving beyond a socialistic government with even greater governmental ownership of the mortgage and insurance businesses. What's next?

Bank of America both Merrill with all of its liabilities. That should give a lot of confidence to those of you who bank with them.

From The Daily Reckoning Australia "The War on Capitalism:"

" --Well, the solvency crisis is upon us. And part of the endgame is that the investment banks are forced into shotgun marriages of convenience with commercial banks. Lehman waited too late and was not only left at the altar. The doors to the church were locked while the building was set on fire. Barclay's is now picking through the rubble.

--Merrill wised up early and fell into the arms of Bank of America. And now it is Morgan Stanley's turn. It was jilted by investors today and fell 24%. This must've caught the eye of another spurned financial, Wachovia Bank. It looks like an arranged marriage is in order.

--Do you, remaining but humbled investment bank, take you, struggling commercial bank, to be your lawfully wedded financial partner, for richer or for poorer, until bankruptcy do you part? "

More of the financial and banking industries have there backs against the wall. Will Uncle buy them, too?

Think about all of our dollars spent conducting mid East wars and now to bail out firms "to big to be allowed to fall." Where are the dollars coming from? How many dollars will be created out of thin air to finance such endeavours. We are getting into more trillions than we have. Our debts can only be paid with even more created un-backed paper dollars. The result of that can only be more price inflation while wages are stagnant, at best, and many folks are losing jobs.

Folks, we must really batten down the hatches and lower debt. It seems that rough times are on the horizon. The result of the election will be yet another higher level of risk to all of us.

Be thankful, as am I, that none of us will have to occupy the seat of the winner of the election. Whoever sits in the seat of the president will face the greatest challenge ever faced by any prior president. And the problems will not be solved any time soon.

Be thankful, too, that King Jesus is putting into that office His the person of His choice. His choice will be for our blessing, or more likely, for a continuation of our curse. We must as a nation turn back to Him or suffer the consequences of our individual and national sins. Only the nation whose God is the Lord will receive His blessings.

Best to each, Doug