Gold Price Should Be A Wake-up Call for Politicians Everywhere

The recent surge in the price of gold to an all-time high should serve as a wake-up call to politicians across the globe to the fact that their fiscal policies are destroying their currencies.

"Concerns about the European debt crisis, which have kept markets seesawing since the Dow's near 1,000-point drop last Thursday, have amplified uncertainties about a global economic recovery. In turn, that has boosted the appeal of tangible commodities over paper currencies or equities, which are seen as higher risk, analysts said."

Gold has appreciated almost 500% against the U.S. dollar over the past 10 years, as concerns about spiraling budget deficits, unfunded future entitlement benefits and the size of the public debt have fueled future inflation concerns, thus propelling the gold price.

Analysts agree:

"Safe-haven demand has been boosting gold prices, according to James Moore, analyst at TheBullionDesk.com.

"The sheer scale of fiscal deficits facing numerous countries is likely to prompt further diversification from fiat currencies and should ultimately propel gold to fresh highs," Moore wrote in a note."

Politicians should take the lesson of the skyrocketing gold price to heart: eliminate budget deficits by slashing public spending, before their currencies are subjected to a Weimar or Zimbabwe-like fate.