RE: CNBC Report....Foreign Interest in GOLDThe forced rise in the value of the US$ is a lot like feeding a cancer, you know it will kill the patient. The last thing the US needs right now is a strong dollar if it wants to dig itself out of its financial mess. What export business they may have still had is being killed. Dollar strength only provides incentive for foreign buying of US treasuries (bonds) so it can get itself further into debt. Not far away from the day those same buyers become sellers as they realize the US dollar has to be devalued.
I still think they should lend the money to the banks for auto bailout and make the banks do the loans. Banks can foreclose and dump the assets were as a government (taxpayer) is helpless. We all know that this thing isn't going to turn around anytime soon so these bailouts are just going to prolong the needed restructure of this industry.
Gold is already showing signs that panic is just below the surface. Doesn't take much of a rumour to shoot it up $20.