U.S. DEFICIT REALLY $202 TRILLION?

Gold is consolidating on the New York Spot Market as of 11:09 a.m. EST as investors remain wary about the strength of the economic rebound. “Gold may attempt to build a base above $1,220 before continuing on its upward trend,” said Ong Yi Ling, Singapore- based investment analyst with Phillip Futures Pte Ltd. “Concerns over the economic recovery will continue to support gold prices.” (Bloomberg, 8/23)

Stocks are higher on the New York Stock Exchange, but investors remain cautious after two weeks of rough trading. Investors have shifted their focus between positive company news and disappointing economic data. According to Steven Goldman, a market strategist at Weeden & Co., economic data has been showing gradual signs of weakness, but “there's still overshadowing concern that will likely keep any rally narrow and in a defensive tone." (CNN Money, 8/23/10)

According to Boston University economics professor Laurence Kotlikoff, “Enron Accounting” has bankrupted America and in reality, the U.S. deficit is actually might higher than the official $1.4 trillion. “Forget the official debt,” he recently told Tech Ticker. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion. “Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It. Kotlikoff continues. “We need (to perform) heart surgery on this economy, not putting on more band-aids which is what we’ve been doing.” Barring that, your hard-earned dollars will soon be worthless, he declares. (Tech Ticker, 8/23/10)