Thursday, February 25, 2010

Lawmakers show little inclination to tackle national debt

Many investors have been talking to silver and gold dealers about concerns raised by the ever-increasing U.S. national deficit, especially in light of widespread doubt about whether substantial action will be taken to resolve the problem.

Still, members of Congress and the White House have acknowledged the national debt problem to some extent in recent weeks. For example, earlier this month President Barack Obama announced the creation of a National Commission on Fiscal Responsibility and Reform.

The panel will be headed by former White House Chief of Staff Erskine Bowles, a Democrat, and former U.S. Senator Alan Simpson, a Republican from Wyoming.

"For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems - and they won't be solved overnight," said Obama in his announcement.

However, the commission's recommendations will not be binding upon Congress, which raises concern in some quarters that it will make little real progress in the long run.

Given the economic chaos that the nation's debt burden could eventually bring upon the financial system, considering an investment in dealer gold may be a wiser long-term choice than ever.