Posted on 05/21/2022 8:09:25 PM PDT by SeekAndFind
To my lights, 10 trillion to 25 trillion is a 2.5 times increase, nearly the same as the 2.4 increase you cited for the US.
My bad, posted 10 trillion but the number is 5 trillion.
CHICOM yuan went from 5 trillion to 25, so that is 5 times.
Doug Casey has been pushing these death of the dollar stories for 40 years. Why? So gold bugs don’t worry about paying way too much premium for gold they buy from the gold sites Casey gets referral commissions from, since at any moment the dollar is going to crash and their gold will shoot up in price. So why worry if you overpaid...
Re: "This has never happened."
Perhaps the original comment meant to say the "notional value" of gold instead of the "notional value" of credit?
According to Investopedia, the notional value of gold includes the total value of all option and future contracts, plus, the total value of all debts that are ultimately guaranteed by gold.
Regardless...
Google says planet Earth has 244,000 metric tons of gold, which includes 57,000 metric tons of proven reserves still in the ground.
My calculator says that 244,000 metric tons (X) times $1,845 per ounce = $16.1 trillion.
This has never happened.
*************************************
In 1934, The government confiscated all the gold at a price of $25. They then raised the price of gold to $35 per ounce, effectively increasing the the Federal Reserve’s balance sheets by 69 percent.
These articles are always economic, trading, and financial IQ tests.
Most fail badly for the following reasons:
1) They have no clue what a “reserve currency” is, why countries hold them, and how they are used.
2) They have have no clue what big money printers the CHICOMS are and WHY China holds 3 trillion dollars of foreign exchange in US dollars and treasures.
3) They have no clue why China needs the yuan to be cheaper than the dollar and if it got significantly stronger that would gut China’s mercantilist export economy.
4) They have no clue that what they call “petro dollars” are only 1% of dollar trading worldwide and so are not significant.
5) They have no clue that things being quoted or priced in US dollars is not the same as payment being required in US dollars.
6) They have no clue that if a country’s currency was tied hard to gold, that would leave the country very vulnerable to exchange rate shock with their trading partners. Gold fell to $750 in 2008, went to $1900 in 20011, back to $1100 in 2016...
7) and many more...
The dollar is backed by the best military on the planet. The US is the only power that can project power world wide. Cripes, the military stayed in freaking Afghanistan for 16 years!
.
“My calculator says that 244,000 metric tons (X) times $1,845 per ounce = $16.1 trillion.”
Good post. Total money in the world is about $200 trillion. Gold bug dream is that means gold will someday go up 10x to match.
The reality is there has never been enough gold in the world to serve as the only currency. In pre-modern times the bulk of transactions were always in lesser currencies (silver, copper, salt).
In more modern times paper money with a gold standard was only ever partially backed. US treasury would issue far more notes than it had gold reserves.
Good advice! Thanks
“There is substantial reason to consider that the actual amount of US gold reserves is much less than claimed.”
Agreed. One big reason for my doubts about our gold reserves is the fact that there has not been a physical inventory of US gold reserves in decades and with all the endemic shenanigans, corruption, theft and graft in our government and the fed, how does anybody know how much is actually there without a physical inventory. For all we know the government stole it and divided it up among themselves and Fort Knox is empty.
More than decades. If I recall correctly the last proper audit was during the Eisenhower Administration.
Remember how hard they fought Ron Paul when he was trying to get an audit of the gold? It seems like a no-brainer and there’s no reason not to. Unless they’re lying about the gold. The fact that they adamantly refuse to have an honest audit pretty much answers the question in my mind.
And there are some questions about how gold is handled that I wish someone who knows more than I could chime in on. But the way I read it, the United States could lease gold to India, And then India could sell the gold for currency. Yet somehow that gold is still counted in our inventory because we only leased it
I have been casting lead and just painting it gold. It’s a lot easier.
Pursue Trump’s policy of being a net oil exporter.
“...last proper audit was during the Eisenhower Administration.”
That’s my recollection as well.
I hope the author is making a lot more money for saying this than I have the past two years.
A teenager with an objective mind could have seen this; $30 trillion debt, govt spending spree, movement of gold stocks, restricting access to energy fuel sources + insulting the Arabs --- BESIDES, we have a D.C. ruling class that wants this to happen.
The consequences for the American middle class will be devastating!
My understanding is it is complete.
I doubt anyone wants to guess at what is there.
My guess, what is there is large quantities because there is a lot of small quantities in deposit boxes.
I’m not a gold bug as far as banking is concerned. But there must be some method of securing loans. Most people have no clue how banks operate.
My gut tells me that the “World Bank” is anything but solid. Speculation is they are all out on a limb if the sky falls.
From yesterday:
Ed Dowd: The Four Converging Forces That Will Destroy the Economy (May 21, 2022)
https://rumble.com/v15khwn-ed-dowd-the-four-converging-forces-that-will-destroy-the-economy.html
Your list is sound. The scent of marketing lingers in the air, as chitter chat about currency, reserves and more is splattered across the media. The large issue as I see it is debt. Debt, whether denominated in dollars. Euros, rubles or gold is still debt.
Given the lunacy of the American Congress and the Fed, and similar lunacy of the European Central Bank and others, debt sucks the life out of tomorrow.
Between energy policies and debt foolishness, things coming will be precipitated out of today. The best answer? Have no debt and own real property of some sort.
And best wishes to you.
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