A Melman Minute — June 27, 2011
| By | Leonard Melman |
|---|---|
| Date | June 27, 2011 |
Greetings from Barbados en route to Georgetown, Guyana.
We have a very early flight this morning and only have time for two quick observations.
First, the US National Debt has just taken an upward lurch to $14.45 trillion, more than $150 billion above the existing debt limit. This is putting pressure on the US Congress to resolve the debt limit problem, and quickly.
Second, while the price of gold has declined from a high of US$1,577 to a present quote of almost exactly US$1,500, for Canadian producers, the situation is close to unchanged since at the same time, the C$ has fallen from about $1.07 to $1.01, meaning producers are still receiving near record prices and there should be little to no impact on their net profitability at these comparative quotes.
Must run, but will forward a more normal Melman Minute as soon as possible.