A picture from the gold vault of the Federal Reserve Bank of New York
Posted on 09/08/2012 5:27:38 PM PDT by bruinbirdman
Pundits are pooh-poohing the plank in the GOP platform that calls for a commission to examine “possible ways to set a fixed value for the dollar,” declaring it a sop to Ron Paul supporters. And indeed this was a motivation of hard-core political calculators around Governor Romney. But these self-styled, world-weary cynical types didn’t put this item in of their own volition. They went along with it because it was pushed hard by Tea Party groups and several U.S. senators and representatives, as well as Ron Paul devotees.
A picture from the gold vault of the Federal Reserve Bank of New York
The yellow metal will be a hot topic in the next 24 months. The commission is going to take on an importance that will astound today’s political punditry, besotted as they are with stale Keynesian quackeries about money, taxes and spending.
Why? Events economic and political. The ever deepening financial crisis around the world will force the new Romney-Ryan Administration to consider–and quickly, too–dramatic measures to deal with the disaster.
The Obama/Bernanke Federal Reserve has been an abysmal failure. No major country’s central bank has been so destructive since the Fed in the 1970s; prior to that, nearly a century ago, it was Germany’s central bank, which created a hyperinflation that helped set up an environment for the Nazi revolution.
Unlike other central bank catastrophes this one, so far, is of a slow-motion variety, which is disguising the immensity of the harm being done.
For the first time in our history our credit markets have been rendered incapable of providing sufficient capital for small- and medium-size
(Excerpt) Read more at forbes.com ...
There is not enough gold or all metal on Earth to back the US dollar now.
The only word you are missing in your statement is, "mined." Otherwise, you are correct.
5.56mm
When the dollar was backed by gold, the price of gold was fixed. How to you back the dollar with something that can see its value swing by 25% or more over a matter of months? That would mean the value of the dollar would swing by the same amount. If you are a company dealing in overseas markets then how do you plan for that?
Well, in theory you could just make the gold to dollar rate extremely high, so that 100,000=1 oz of gold, or something ridiculous like that, but I think if we did that it may a bit too cumbersome with all of the high denomination bills floating around. By that point the dollar would be like Yen used to be, and you'd be paying a thousand dollars for a coke.
What do you think of the possibility of phasing in a new currency to replace the old dollar and then back the new currency with metal or some other commodity? Do you think that that may be a more feasible undertaking? What do you think of backing a new currency with a silver standard?
It’ll be a jumpstart for the alchemist community.
Malcom Forbes, leader of the motorcycle gang The Capitalist Tools, died decades ago.
His number 1 son Steve is the author and editor in chief now.
The US could be the leader, but will likely be the follower and accept the gold standard five or maybe 10 years after the rest of the world.
Since the Europeans lack the will to do anything but self destruct, I expect the leadership will come from an economic alliance based in Dubai and Singapore.
A little off topic, but while at the hardware store yesterday I saw a roll of copper flashing (24” x 50’) with a price tag of $650.00!
That’s why I keep buying many things I think we may need in the next 10 years.....may as well have the goods....the dollars won’t be there to buy them in the future.
It is a pipe dream and here is why....
The U.S. does not even have enough gold, at current rates, to pay off the portion of its debt owed to foreign investors. For example, even when gold hit its peak price of $1,895 an ounce in September 2011, there wasn’t enough gold for the U.S. to pay off its debt. At that time, China, Japan and other countries own $4.7 trillion in U.S. Treasury debt - but there was only $445 billion total in gold reserves at Fort Knox. (Source: U.S. Treasury Major Foreign Holdings of U.S. Debt; Office of Inspector General, Audit Report, September 2010)
Goldbug Ping
Yen - what was their cents called?
The Korean Won is close to 1,000 to the dollar
No, that is absolutely on-topic.
“It’ll be a jumpstart for the alchemist community.”
Provided by the readyfreddy “venture capitalists” of the Pink Sheet market and the Canadian Venture Exchange.
Count on it.
Personally, I own silver and gold mining company shares but in such a scenario you can bet wishful thinking will out-perform actual miners.
Keep an eye peeled for early-stage lead-to-gold stories! There’ll be a buck in it.
Hmmm. News was boring to a spoiled kid like me back then. Heh. Will have a look and read some actual details about the price freezes. Thanks.
There is plenty of gold to back the dollar, it just has to be priced correctly.
Hey, that’s something.
“The U.S. does not even have enough gold, at current rates, to pay off the portion of its debt owed to foreign investors”
Which is why those “foreign investors” are going to eat their paper. There is no chance - zero - that they are going to get paid. Not now, not ever.
We had the same problem with continentals that we do now with Federal Reserve Notes.
See the appendix of "The Great Income Tax Hoax," by Peter Schiff's father, Irwin Schiff.
That’s pretty close to a dollar.
I agree about the gold and metal, but it is my hope that the oil, coal and outher resources will be enough to cover our debts
No reason to have a “basket of metals.”. Gold by itself will work just fine.
And for those who say there’s not enough gold to back the dollar, you’re wrong. Any quantity of gold can back the dollar. Why couldn’t it?
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