gold, page-22708

Hi Timber 1956 and all,

“I would be really interested to hear how you think such a "gold standard" would be implemented in the US. (I don't think that the current US government holding of 8,000 tonnes is sufficient to reintroduce convertibility of dollars for gold, and without convertibility the gold standard is a sham.”

It’s probably just a question of arithmetic simply add up all the USA dollars in circulation and those held on computers and dodgy bonds and other paper instruments then divide that number by 8,000 Tonnes or 257,200,000 ounces and you have the Gold price per ounce that backs the USA dollar.

Of course people like you and I guess a few others may not like the Gold per ounce number produced reflected in US dollars.

If they really wanted to be smart whilst people still see the US dollar having a real value they could quietly start buying up more Gold while is still so cheap.

Also they may not require a 100% Gold backing, a partial Gold backing or joint backing with Silver might be the answer.

After all why did Nixon close the Gold window in August 1971 apparently hanging on to this worthless barbarous relic of 8,000 Tonnes of Gold? One wonders what his concerns where when they had the world’s one and only reserve currency.

When the UK, Australia, Canada and other countries where selling Gold like it was going out of fashion I notice the USA did not sell any more of their Gold. Apparently according to Ben Bernanke they only hold Gold because it’s traditional. He also told us about the USA having a technology that allowed them to print as many dollars as the wished at virtually no cost! I don’t know about you but that sounds like out of fresh air to me

I believe they had a similar technology in the German Weimar Republic and Zimbabwe and we know how well that all went.

Check out 100 years of the US dollars purchasing power since the implementation of the FED in 1913. You could ski down that slope from 1971 onwards I wonder why that was.

http://visual.ly/purchasing-power-us-dollar-1913-2013

You my friend can keep your dollars and paper money I for one will continue to hold on to my physical Gold for the time being.

Cheers and very best regards: Andy