Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Vanity: Why not sell the US oil reserve and use the proceeds to buy gold for Ft Knox.
11/29/2014 | Charles Kilmer

Posted on 11/29/2014 2:43:52 PM PST by ckilmer

An interesting way to harden the US dollar and make it less of a fiat currency would be to sell the US oil reserve and use the proceeds to buy gold to store in Ft Knox or elsewhere.

For those who know their dollar and oil reserve history--this is 180 reversal of policies set in the 1970's because of a 180 reversal of circumstances. In the 1970's US oil production peaked and went into decline while the US dollar went off the gold standard and went into decline.

What's different now?

1.)Fracking has shown that the USA now has 100 year supply of oil. The USA is not going to run out oil any time soon. The fear of limited supply was the original reason for creating the US oil reserve. Now we know that we will not run out in anyone's lifetime.

2.) There are dozens of countries around the world working at undermining the dollar as the era of petro dollars winds down. Increasing gold reserves will help to harden the dollar.

3.)Countries like Germany and Holland are starting to move their gold out of the USA. This doesn't look good. It shows a loss of confidence in the long term viability of the USA. Selling oil and using it to buy gold would be a confidence builder.

3.) Its likely that oil will return to the $90@barrel in a year or two as lower oil prices reinvigorate the world economy and thereby push up the demand for oil and consequently the price of oil. However, the long term direction of oil is now down. Why. Because car makers in Japan Europe and America are shifting transportation to alternate fuels like natural gas, electric and even fuel cells. This is not a fad. Europe and Japan have an even more profound need than the USA to become energy independent. They can't do that as long as oil is their main transportation fuel.

Therefor its best to sell oil over the next decade while prices for oil are relatively high. 10 years from now and beyond oil is going to $35@ barrel and below as demand for oil collapses.


TOPICS: Your Opinion/Questions
KEYWORDS: gold; goldbugs; nuttery; opec; tinfoilheadgear
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-97 next last

1 posted on 11/29/2014 2:43:52 PM PST by ckilmer
[ Post Reply | Private Reply | View Replies]

To: ckilmer

Remember the parable of King Midas.

I’ll stay simple and grow food.... That’s the true gold.


2 posted on 11/29/2014 2:48:46 PM PST by tired&retired
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

It would be like selling your silverware to buy new dinnerware.


3 posted on 11/29/2014 2:49:23 PM PST by USFRIENDINVICTORIA
[ Post Reply | Private Reply | To 1 | View Replies]

To: tired&retired

Precious metals are an excellent investment... Brass & Lead.. with a little gunpowder!


4 posted on 11/29/2014 2:49:55 PM PST by tired&retired
[ Post Reply | Private Reply | To 2 | View Replies]

To: ckilmer

I think our economy is basically being held up by our future energy potential already.

Our current national debt is (I believe) close to the aggregate value of our proven reserves, if you count fracking shale plays.


5 posted on 11/29/2014 2:51:54 PM PST by Steely Tom (Thank you for self-censoring.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

Why would you sell it now, when oil prices are already in the toilet?


6 posted on 11/29/2014 2:52:43 PM PST by Nik Naym (It's not my fault... I have compulsive smartass disorder.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steely Tom

Most people don’t realize that the only way our country can survive is to not survive... Meaning to collapse, default on the national debt and form a new government without all the freebie handouts.


7 posted on 11/29/2014 2:54:04 PM PST by tired&retired
[ Post Reply | Private Reply | To 5 | View Replies]

To: Steely Tom

I think our economy is basically being held up by our future energy potential already.
............
agree. Its been rising oil production that has steadied the US economy for the last four years.


8 posted on 11/29/2014 2:54:06 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 5 | View Replies]

To: tired&retired

Remember the parable of King Midas.

I’ll stay simple and grow food.... That’s the true gold.
................

I don’t disagree. I just don’t quite know what the relationship is between your point and what I posted.


9 posted on 11/29/2014 2:56:09 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Nik Naym

I don’t think it wise to sell now. Rather do the selling in a year or two. However, the long term direction of oil is now down.


10 posted on 11/29/2014 2:57:00 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Nik Naym

I don’t think it wise to sell now. Rather do the selling in a year or two. However, the long term direction of oil is now down.


11 posted on 11/29/2014 2:57:04 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 6 | View Replies]

To: ckilmer

Because there has probably been as much fraud by the feral government with the oil reserves as there has been with the gold allegedly held by the Federal Reserve.


12 posted on 11/29/2014 2:57:34 PM PST by E. Pluribus Unum (Any energy source that requires a subsidy is, by definition, "unsustainable.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: tired&retired

I guess the 47 percenters will find themselves in a bunch of trouble.


13 posted on 11/29/2014 2:57:55 PM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
[ Post Reply | Private Reply | To 7 | View Replies]

To: tired&retired

Most people don’t realize that the only way our country can survive is to not survive... Meaning to collapse, default on the national debt and form a new government without all the freebie handouts.
...............
The USA is going to enjoy a massive surge of wealth in the next couple decades. Debts will shrink to a smaller portion of the economy.


14 posted on 11/29/2014 2:58:42 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 7 | View Replies]

To: thackney

Ping.


15 posted on 11/29/2014 3:00:47 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

Maybe better to wait until BHO is gone. If there is any new influx of money now, BHO will find a way to steal it for his progressive cronies.


16 posted on 11/29/2014 3:00:59 PM PST by Blennos
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

With Russia threatening global nuclear war again, now is not the time to be getting rid of the stockpile.


17 posted on 11/29/2014 3:01:06 PM PST by ansel12
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

As if any gold would actually make it into Ft. Knox.

Oil has bottomed out. Not the time to sell. Besides, we need it. Never ever sell off what we might need come the next World War.


18 posted on 11/29/2014 3:01:39 PM PST by bgill (CDC site, "we still do not know exactly how people are infected with Ebola")
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

Because there has probably been as much fraud by the feral government with the oil reserves as there has been with the gold allegedly held by the Federal Reserve.
.................
I’m assuming that the oil reserves are actually there. I could be wrong. If I’m already wrong and the feds don’t have gold in ft knox then we really are in deep do do. And the need for gold is much higher.


19 posted on 11/29/2014 3:02:35 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Blennos

Maybe better to wait until BHO is gone. If there is any new influx of money now, BHO will find a way to steal it for his progressive cronies.
..............
Now you might be right about that. Any legislation mandating the sale of oil would have to specify precisely that the money would have to be used to buy gold.

The dollar will go to the moon.


20 posted on 11/29/2014 3:04:56 PM PST by ckilmer (q)
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-97 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson