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 ...
e.g., A gram?
or just made one troy ounce of gold equal $10,000? $15,000?
Not quite. WAY too many dollars out there to peg at current price of gold.
Estimates are a POG of around 10000 an oz to cover all the Bernanke Bucks out there...
I’d like to get a HUGH grant (ha!) from the 0bama administration to utilize solar and wind power to transmute base metals to gold. Boy oh boy, imagine getting millions from these jerks to do the impossible. Obviously, I missed out on Solyndra or any of the ten or so other goofball solar debacles.
Would this increase the price of an ounce of gold considerably?
[There is not enough gold or all metal on Earth to back the US dollar now.]
Yep. And even if there were — how would a post-modern Technocracy facilitate e-commerce among 7 billion people with “Gold”?
This is nothing but the same old golden-cycle of sheeple fleecing.
The way that the Govt and the Central banks are stealing from everyone is by printing more and more and more money (electronic money). This is not creating value, it is just diluting the value of existing paper, dollar-denominated "assets" with every new dollar that is produced.
That is exactly why the "price" of gold in dollars is up from $300/oz 12 years ago to over $1730/oz today. The purchasing power of dollar savings, dollar pensions, etc. has been WAY diluted. Stealth theft as govt policy.
And, while this is happening, the true rate of inflation is being purposefully under-stated, and interest rates are being artificially depressed - the repression of savers - stealing from savers, pensioners, etc. and transferring that wealth to the biggest banks while trying to save them from their excessive load of debt that will never be repaid.
The much ballyhooed anticipated bond buying by Bernanke and the Fed? That's just printing money for the Fed to use to buy toxic/bad bonds from the biggest banks - again - to save them from their bad assets which have made them insolvent. This is shifting those losses from the banks to the taxpayers and to everyone who holds dollar-denominated assets. What a scam! Why are food prices - in dollars UP so much? The price of oil and other commodities - which are also priced internationally in dollars - are likewise up precisely because the purchasing value of the dollar is way down...
And, this because the world has become awash in so much debt that it will never, and can never be repaid by dollars worth what the original debt was worth. Instead, new dollars (debt dollars) are being created from nothing to pay off the old... Old debt is being repaid by new "dollars" (and Euro's, and etc.) that are in reality worth less and less and less in their buying power.
And, this will continue...
At $30,000 an oz. there is
Double your number.
16 Trillion dollars of debt divided by the 280 million ounces they say we have comes out to about $57,000 an ounce...
Here’s why I’m suspicious about the sincerity of politicians offering to deflate the dollar and pressure for sane interest rates. The main mob of constituents for both political parties is now comprised of government employees, other recipients of government incomes and services that value them as customers.
They prefer to keep the debt regime going as long as possible. They keep the illusion going in fearful bond investors that the debt might be paid with cheapening dollars and hope that more revenues will paid with increasing amounts of cheaper dollars.
IMO, the majority of constituents will continue to push government to inflate the dollar and keep rates insanely low. Higher bond yields would make bond investors even more fearful, as government would be less likely to pay toward the debt as long.
More information is welcome here, though. I have very limited knowledge, and it’s a mess of a puzzle.
Sure, put us back on the gold standard, and simultaneously outlaw the private ownership of gold, forcing everyone to turn in their gold for ObamaBucks. It worked for FDR.
with 16 trillion in debt, several things must happen.
1) welfare transfer payments must be ended.
2) Socialist Stupidity must end.
3) Medicare/Medicaid must end.
4) the 16 trillion must be brought in line with something that is manageable in terms of interest to the lender.
5) slowly contract the money supply and create some real value of the dollar.
Lazamataz has a value of 1/1700th of an ounce....
People simply won’t accept 17 milligrams per dollar.
in 1913 gold was ~$18.00/ounce.
so $1 = 1 gram seems about right for what people would accept.
A fiat currency backed by other fiat currencies? How in the world would that stabilize anything?
if the dollar is backed by gold in some form, it will stabilize. I can't see a dollar being worth an ounce of gold, but maybe a fraction of an ounce, given the current prices of gold. Now, if Gold were stabilized at a set price, like it used to be, then the dollar would stabilize and there would be real value to it.
Your spot on actually. Copper is traded just like gold.
I do low voltage wiring. So I deal with miles of cat5e/cat6 wire..
Probably does not mean much to you but it’s network cable. 4 pairs of wires in a jacket, of course the wire is copper. 10 years ago it was about 20 dollars a box.
I just ordered 15 miles of wire for a project. Best price I could get per box in bulk was 200 bucks a box for quality wire from a trusted name.
I could cheap out and get copper clad aluminum wire, or thinner wire that they say is just as good.. But when your bidding 6 figure jobs the last thing you want is a network that does not exceed the customers expectations.
... about a hundred dollars...
“Not at all. Figure gold is, what, 1700 per ounce? Peg the dollar to 1/1700 of an ounce. It would be 16.6761901 milligrams. So what if it is a small amount? It would stabilize the dollar immediately at it’s present level.”
Or destabilize the price of gold.
Heh.
Barbarous relic strikes again.:-)
Their cents are called "sen", but they aren't really used anymore, except maybe in money markets. I believe that the smallest circulating denomination is currently the 1 yen coin.
The Koreans are 1000 Won to the buck or theres about and they also have or had a “cents” which probably never get used either. I think 250 won coins are used though.
On my first trip to Japan the exchange was roughly 3 yen to a penny, iirc. I felt rich. But that was a long time ago.
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