This. I was the strange fellow at gatherings as we thought, 43 years ago, that there was a chance that the US could go back to a gold standard. I heard, "a gold standard isn't flexible enough for a modern economy" and "deficits don't matter as long as they don't exceed X percentage of the GDP" and "you're nuts," etc., etc., etc.
You articulate so well what I instinctively know, and have known to be true about our insidious fiat monetary system, but have struggled to fully understand.
The End Game might just be a fractional reserve that backs all the USD-based debt against whatever gold the Fed claims to have. And when I refer to the debt it's everything including all the unfunded liabilities. They could go back to a 40% reserve backing. Not sure what the present-day numbers are but all the numbers are out there. Just have to do the math. The point is, the USD will then be fixed at some ratio against all the existing debt.
Well, there is an actual line item on the Federal Reserve's balance sheet with how much gold they have but it's dollar value is still based off of the $35/oz price.
Excellent essay. I need to spend some time to reread and digest.
This. I was the strange fellow at gatherings as we thought, 43 years ago, that there was a chance that the US could go back to a gold standard. I heard, "a gold standard isn't flexible enough for a modern economy" and "deficits don't matter as long as they don't exceed X percentage of the GDP" and "you're nuts," etc., etc., etc.
Thanks Rafi,
You articulate so well what I instinctively know, and have known to be true about our insidious fiat monetary system, but have struggled to fully understand.
The End Game might just be a fractional reserve that backs all the USD-based debt against whatever gold the Fed claims to have. And when I refer to the debt it's everything including all the unfunded liabilities. They could go back to a 40% reserve backing. Not sure what the present-day numbers are but all the numbers are out there. Just have to do the math. The point is, the USD will then be fixed at some ratio against all the existing debt.
I wouldn’t assume the formerly United States HAS ANY gold. The obamunists could have sold it all on the cheap to their masters in the CCP.
It would be just a piece with their campaign of self destruction.
Well, there is an actual line item on the Federal Reserve's balance sheet with how much gold they have but it's dollar value is still based off of the $35/oz price.
Right, actually curiously valued at $42.40, they would never lie . . .