Well, much of this is far above my pay grade, but what strikes me about all this international currencies circus is that there is nothing involved of established value... and SDRs have been re-defined and revalued often.
I cannot get over the suspicion that the Fed wants to drive the US into insolvency via debt so that the IMF can step in with authority to declare that our Constitutional form of government is not a workable financial solution - that global socialism is the only resolution.
Of course gold does not have an established value either, but the Arabs think it is permanently reliable... historically hard to argue with. I wonder what Q means by answering the question Q: Do we have the gold? with: Yes. Gold shall destroy FED. Q Raises questions... like why we told Germany it would take 8 years for them to recover all their gold stored in Fort Knox.
...above my pay grade...
“Well, much of this is far above my pay grade, but what strikes me about all this international currencies circus is that there is nothing involved of established value... and SDRs have been re-defined and revalued often.”
That’s the case now because no one is using a gold standard. When Keynes suggested using a Bancor during the Bretton Woods Conference there was a gold standard and this creates a much different monetary regime.
“I cannot get over the suspicion that the Fed wants to drive the US into insolvency via debt “
Considering that the Fed doesn’t issue any debt you will need to rethink that suspicion.
Congress is the agency that can and does issue debt in our name. They alone have the Constitutional authority.
The Fed can buy and sell debt in the open market the same as you do when you buy a bond. There is a different reason and effect when the Fed does it, they do it to adjust the supply of high-powered money in the banking system.
Commercial banks can’t lend the money that they have tied up in bonds/debt. If the Fed purchases bonds from those commercial banks then the banks have money that they can lend and the economy can grow. The Fed has to balance the need for increasing the money supply with defending the value of the dollar. Their job is to act as our monetary authority.
“I wonder what Q means by answering the question Q: Do we have the gold? with: Yes. Gold shall destroy FED.”
It means that he doesn’t know what he’s talking about with regards to the arcane world of central banking and monetary theory. The Fed operated for 60 years under the gold standard, and re-imposing one won’t “destroy” the Fed in any fashion.
On the other hand a gold standard is a big problem for free spending politicians who want lots of government programs. There’s a reason that the Bretton Woods gold standard blew up soon after the Lyndon Johnson “guns and butter” Great Society + Vietnam War spending. Let’s see if Q can figure out why, because his quote about the Fed and gold indicates that so far he doesn’t have a clue.