This is getting silly, we all know federal reserve notes are exchanged for gold bars every day.
Touche'- very clever. Yes, what is the gold exchange rate today for FRN's? $1,200 per ounce?
FOFOA has speculated that the true FRB value of gold is above $50,000. That's why the gold bugs argue that gold will skyrocket if the $USD ponzi crashes. All those excess 100:1 claims compressing down to one universal wealth standard.
I understand their POV, which is why I think the US will attempt a controlled deflation (aka demolition) in order to preserve the remnants of reserve currency status. Better to have everyone in rags rather than risk a complete implosion.
Indeed. You said, "FRB creates gold based bank notes..."
FRB doesn't create 'gold based bank notes'. Fiat isn't backed by anything, much less gold.
"...we all know federal reserve notes are exchanged for gold bars every day.
The fact that you can exchange fiat for bars doesn't mean that it is gold-based any more than the fact that you can exchange fiat for six-packs means that it is beer-based.