The moment I read sunday night release of the White House fact sheet on The Deal my expectations ran high that we’d see a few days of real opportunity for buying gold coins.

August 03, 2011 – The moment I read sunday night release of the White House fact sheet on The Deal my expectations ran high that we’d see a few days of real opportunity for buying gold coins. Although The Deal is totally devoid of substance the wording is just the sort of thing to trigger a little kneejerk euphoria.

The S & P didn’t disappoint, starting off the day with a jubilant jump of 17 points – most unusual for the first day of August under any circumstances – but gold barely sputtered, then got right back to business. Oh well, the day is still young and many Americans have not yet had their morning coffee. And of course, Congress has yet to approve what their leaders agreed upon, and it is anything but certain that they will.

More than anything else our representatives will be remembered for their my-way-or-the- highway attitude. Their simplistic thinking and all out dedication to furthering their political careers at the country’s expense typifies the ideals of the “me” generation and only impedes any sort of economic progress. None-the-less, it would be to their peril not to play to the changing tide of American sentiment – we’re tired of the this debacle and are ready to get back to the comfort of delusion.

So I think The Deal is just the tonic America wants. It proclaims itself a bipartisan victory, “a win for the economy and budget discipline.” Who needs to read past the headline? But the fact sheet is short and well worth the read.

Consider the can thoroughly kicked – clean into 2013. Because of that The Deal concludes it will be impossible to “to use the threat of the nation’s first default now, or in only a few months, for political gain.” We shall see.

Rather than tackle deficit reduction head on The Deal merely calls for a “down payment” while members of Congress come together in newfound brotherhood “to seek a balanced approach to larger deficit reduction through entitlement and tax reform.” And they stuck a sword of Damocles into the ceiling over their heads to ensure they act in good faith. Anything else and they will find themselves in the exact situation they were in before The Deal, only this time “that outcome would be unacceptable to many Republicans and Democrats alike.”

Maybe it’s just too transparent this time. The ratings folks certainly should see through it easily enough and early signs indicate investors aren’t being fooled. As for me, I’ll keep looking for that euphoric reaction to create some bargain days but I’ll keep buying gold coins regardless – the road gets a lot rougher ahead.

Kevin Johnson

Senior Staff Writer – GoldCoin.net