I would honestly be surprised if the United States even has any gold reserves on-shore any longer.
BTTT!
There isn’t enough gold in the entire world to cover our national debt.
Gonna raise the value of gold to cover that? Me thinks Forbes has a bunch of overpriced gold he’s looking to unload.
FACE “Great Depression II” ??
We’ve BEEN there for 5+ years already. . .
Great Depression II
Oh, and the last one was international (as this one is).
Oh, and we all know how the last one ended.
Oh, and this one will be far worse (see Ezekiel 39 or Revelation).
If the dollar is linked to gold, in the first year, the value of an ounce of gold would be well over $100,000, and a short time after that, over $1,000,000.
A figure that is widely used by investors comes from Thomson Reuters GFMS, which produces an annual gold survey. Their latest figure for all the gold in the world is 171,300 tonnes.
Officially, the US has 8,133.5 (metric) tonnes (likely very exaggerated). There are 32,150 Troy ounces in a metric ton.
This means that the US government has about 261,492,025 Troy ounces of gold.
First of all, calculate the US budget divided by that number. Then the US debt. This is the way to figure out how much inflation our currency would have to experience to normalize it with the amount of gold we theoretically have.
News Flash.
We are already in Great Depression II. All the very worst of the New Deal and Jimmy Carter have been combined with the foreign policy ineptitude of the Kennedy-Johnson administration, when we got sucked into Viet Nam and lost open access to Berlin, in addition to the Cuban Missile Crisis.
The favorable thing about the Kennedy years is that the war machine was cranked up and feeding the economy here at home, while today we don’t even have that, with a military falling to less than the level of the late 1930’s.
Gotta watch that carbon dioxide level, though.
You want reliable solar power? Put a huge array of solar collection panels in geosynchronous orbit above a fixed receiving point on earth, and transmit the generated power down by a tight microwave beam. No wires, no problems with power transformation, and no interruptions of service. Of course, anything that flies through that tight microwave beam is going to be instantly cooked.
If you link the dollar with gold then when the value of gold drops by a third, as it did in 2012-2013, then wouldn't the value of the dollar drop as well? And couldn't China destroy the value of the currency merely by dumping their gold into the market?
Correct me if I'm wrong here - the Fed takes it's marching orders from the Treasury, and the Treasury answers to the President. In addition, the President appoints the Fed Chairman or Chairwoman.
The blame lies squarely with our irresponsible politicians, plain and simple.
Well that would be great except we have no gold.
Gold never backed the dollar. It’s US production that determines the value of the dollar. The old MV = PQ still holds. It also suggests that if output is falling, so should the money supply. Alas, that’s where the Fed has really screwed up. Any measure of the money supply has so far outstripped output that the “real” value of the dollar is in the pits. The piper isn’t that far away, and if these idiots in Washington don’t curtail spending, this Republic is doomed.
Gold's ancient role as money is being rediscovered by trading nations who are ditching the dollar FRN. This process can only accelerate as colossal debt forces fiat currencies to hemorrhage buying power.
Foreign exchanges are trading physical Gold and Silver while the COMEX (trading synthetic, non-physical 'Gold' and 'Silver') is becoming increasingly irrelevant.
Freed from the false signals generated by the COMEX: world markets will discover the correct price for precious metals.
Let markets find the price. Don't let Government do it.
Linking the dollar to gold will cause the Great Depression II.
Not enough AU in the world (mined or known deposits), unless gold is at $10k/oz. Or more.
5.56mm
He’s right, but he’s kinda disappeared and is persona non grata...
His magazine I used to love have become quite liberal repubbie and I chose to not renew.
The US will abrogate it’s debt one way or another.
Massive runaway inflation is one way to make all financial instruments denominated in dollars and held external to the country worthless. All the treasury notes, dollars and electronic funds would be worth nothing. A new internal currency would need to be created and exchanged for internally held dollars. WAR(s) of some sort will follow such an action.
World war three might be ginned up to cover economic collapse. The result would be a reset like massive inflation but with more blood. Nuclear war would cause everyone to throw up their hands and say the past means nothing...our debts mean nothing and we will start fresh.
This scenario would be used as an excuse for collapse and a possible way to keep blame from the current leaders.
One of the above is going to happen.......IMO no other realistic possibility exists.
If you were to tie the dollar to gold, without a longer transition period would shock the system into an even greater depression.
Everything would come to a halt. Credit would disappear. Deflation would be brutal and would drop our current standard of living to that of, say, Haiti.
Of course your debts would still be there. Costing you more and more every day.
I understand the theory. There is not enough gold to spread around.
We are just too screwed. We need to go through the collapse before this would work.
