Posted on 05/13/2023 12:01:03 PM PDT by arthurus
Right now, the Fed’s gold certificate values gold at $42.22 an ounce. That’s obviously not anywhere near the market price of gold, which, again, is about $2,042 an ounce.
Now, the Treasury could issue the Fed a new gold certificate valuing the 8,000 tons of Treasury gold at $2,042 an ounce. They could take today’s market price of $2,042, subtract the official $42.22 price and multiply the difference by 8,000 tons.
(Excerpt) Read more at dailyreckoning.com ...
So you are saying there is once commodity with an absolute value? That makes no sense from a free market perspective.
This is a virtual world now, dude lol. Not need for actual physical assets even at Fort Knox! Besides, ChatGPT told me it’s there.
I am one who believes in in holding form to the McCarthy plan.
The future is going to have some pain, “white flag” waved again or not.
What is going to happen after default?
1. Medicaid payments will be irregular and reduced, requiring states to lend the federal amounts to the hospitals and doctors
2. government paychecks will be delayed longer and longer, so a soldier might get October pay in December
3. Medicare will have to pay using Treasury bonds now held by its trust fund, which the hospitals will have to sell at a slight discount to face value for ready cash
4. Social Security might pay by Treasury bonds to your bank (which might insist on recipients opening a monthly fee account)
5. Social Security might not get paid to some recipients, in which case family or a state government might lend the recipient the monthly amount
6. discretionary payments may not come for many months after their currently expected date
Gold is absolutely stable in value. Has been for thousands of years. This is why coinage laws have always been set in Gold. Or in fractions of Gold Value in Silver.
Here is how it was explained to me one time by a very wise and successful economist.
In Roman times an ounce of Gold would buy you a good horse.
In the 1800s an ounce of Gold would buy you a good horse.
Right now an ounce of gold would buy you a good horse.
Despite currency value smoke and mirrors going up and down the true purchasing power of Gold weight has never changed. One ounce will always be equal to one good beast of burden.
Gold is a loser. It accomplishes nothing.
You will find gold pushed by the wackos who think their 3 pounds of it in the basement will make them king of their county someday. I can assure you gold guys, women aren’t going to want you post Apocalypse, either, unless you can hunt and fish.
Gold loses because the money supply growth tied to gold is suddenly at the mercy of gold mining company CEOs. Economies of the world suddenly are controlled by mining company executives.
Now, that’s not HUGELY inferior to putting it in control of the Fed Board of Governors, or Central Bank presidents of other countries, but at least they have to get politically appointed and maybe confirmed by Parliaments.
A mining company CEO may be that only because his grandfather bought a lot of shares.
Truth is, pretty much the only parameter aligned with money supply is population. But then the fights will start about green cards and illegals.
Good explanation.
Shoot, a fella’ could have a pretty good weekend in Vegas with all that. - Major T. J. “King” Kong
I love this horse observation.
I guess a good horse would cost me about $2,000 right now.
In the mid-1930s, Great Britain and France could have shown resolve and all of Europe would have benefited.
In the 1930s the Nazis were the danger.
In May 2023, we have to stand firm against Democratic vote buying to avoid becoming a nation totally run by Democrats for Democrats.
Standing firm is risky. Short term pain is very possible.
Waving the “white flag” this time will be painful to your dying day, since the Democrats will be able to buy votes until American dollars won’t buy a Chinese-made wheelbarrow.
1 pound = 14.583 troy ounces
Gold is weighed in Troy ounces
In hindsight, yes. But back then many still considered the Bolsheviks to be the greater danger, and they felt at least Hitler could keep the Bolsheviks at bay, so they tolerated him. Churchill's own party literally kicked him out for dare saying Hitler was a bad man in 1934.
One troy ounce is equal to 1.097 standard ounces, making it around 10% heavier. The name dates back to the 16th century French town of Troyes, which was an important trade center that standardized the troy ounce as 480 grains of barley.
Make sure you can fund your parents if their Social Security doesn’t come on time and they have insufficient liquid assets.
The federal government may pay out on Social Security lowest benefit recipients first.
The Democrats will fund the hospitals since Democrats tend to be sicker than Republicans and most hospital employees are Democrats (~85%).
If you want a doctor appointment, Medicare beneficiaries may have to pay cash in full upfront.
Diane Feinstein can chime in with her words of wisdom, I’m sure between the 3 of them they can solve it quickly.
Yep, it is the purchasing power of the DOLLAR that goes up and down. It now takes 2000 DOLLARS to buy that good horse. Which is ironically equal to one ounce of gold... In the 1800s an ounce of Gold was worth $20. Which again was equal cost for one good horse at that time. :)
“I guess a good horse would cost me about $2,000 right now.”
Yep, absolutely right on the money. :)
Drop in the bucket. That would cover a few months of spending.
It’s just a matter of how long it takes the cost of everything to catch up with the increase...and probably surpass it. Happens with every cost of allowance in the military and now it can happen on a grand scale making the new middle men/women richer faster. And it is still a rock. One that can be used for shopping in only 12 states of the 50.
wy69
When the Treasury originally gave the certificate to the Fed, the Fed gave them $42 billion in dollars. That means the Fed owns the gold, not the Treasury. The Treasury may have stored the gold and not transported it to the Fed, but they can’t sell the same gold twice in this world. Unless the Treasury has another stash of gold to sell, they are out of luck.
The Fed has no use for gold because they control the money supply machine. They can create whatever amount of dollars they need on a computer. The gold trick was pure public relations to make people think that the Treasury was “paying” to exceed the debt ceiling.
Legally, all the Treasury ever does is ask the Fed to create what funds they need to meet the government’s obligations and transfer them into the Treasury accounts. The debt ceiling law technically violates the Constitution by preventing the Treasury from paying its bill. It should be repealed or reversed by the SCOTUS.
“Anyone actually see that 8000 tons of gold lately? Maybe check one of Joe Biden’s garages.”
Did Germany get the gold returned that they left for safekeeping? They’d have waited years by now...
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