As hundreds of cruise missiles begin to fly toward Libyan targets, at some $1 million per copy, (reports vary) one has to wonder, who's going to pay for all this. I mean, we're broke! We're $14 trillion in debt with no visible means to pay it back. Now, another war has begun.
This morning, talk show host Laura Ingraham, commented on Fox News that she believes the U.S. will end up paying for the majority of costs. I recall being told at the outset of both Gulf wars that, ultimately, Irag would pay us back in oil profits. That was the last I heard of that.
The lack of comment from the White House on the subject of cost, suggests to me that Laura Ingraham may be right. Others would argue that since the actions are as a result of passing U.N. resolution 1973, that many nations will bear the cost. Will we ever know exactly?
Regardless of who bears what cost, one thing is certain. It will cost us something and since we don't have the money, that means we will have to print even more to cover the cost.
As for gold? This all adds up to upward pressure on the gold price. Goldman Sachs recently weighed in with another projection, putting a target price of $1690 on an ounce of gold, within the next 12 months. That's up nearly 20% from today's levels.
Every day it appears Gold is becoming a safer bet to protect and grow your retirement accounts. To learn more, make regular visits to LearCapital.com for breaking news on the Markets, the Economy and Gold.