This post is on gold. It has a long important history in the monetary world. By definition, gold IS money. Paper is just fiat crap. There are many important people calling for a return to the gold standard. GOV would like to have pure fiat currency but, it has never worked out well.
Keep in mind that the U.S. GOV claims to have about 8000 tons of gold. This gold is valued at $42.22
"t appears to me this process has been going on since 407 BC, with the first great inflation in Athens. I have charts in my book, Guide to Investing in Gold and Silver, starting in the year 1918, showing the value of the gold held at the United States Treasury compared to the value of all of the base money or paper currency, and it was a 1:1 ratio.
Jeff: So history shows that the value of gold eventually equals the value of all paper money in circulation?
Mike: Yes. Back then, the US dollar was a claim check on real money — gold. Base money was the number of US Treasury gold notes in circulation. Before World War I, base money equaled the value of the gold held at the US Treasury. Then we established the Federal Reserve and did a bunch of deficit spending for WWI, expanding the currency supply, so now there wasn’t enough gold to cover all the dollars they printed. In 1934 the price of gold was changed to $35 per ounce and the values of base money and gold at the Treasury were once again in equilibrium."
"Mike: When I finished the book, it required a $6,000 gold price to cover base money plus outstanding revolving credit. I’m not saying that that’s going to happen, but if history were to repeat, that would be the price.
However, since the book was written, Bernanke created a whole bunch of base money to bail out the banks, and now it takes a $15,000 to $20,000 gold price"
"My target for gold is that it should be equivalent to 1/40 of a single-family, medium-priced home, or two shares of the Dow. So gold will probably buy you about 12 times more stocks and 3 times more real estate in the future than it does now"
"All of the previous transitions were baby steps from something (gold) to nothing (debt). In order to give confidence back to the currencies, we’ll have to go from nothing (debt) to something (most likely gold again) in one big, huge, gigantic leap. This will cause an economic convulsion the likes of which the world has never seen."
"The US government never confiscated gold; they “nationalized” it. In 1933, they bought it from US citizens at full face so that the Treasury could hold it as an asset for the entire nation. That’s the very definition of nationalization."
This is an excellent article on gold confiscation;http://www.usagold.com/gildedopinion/go ... -ganz.html
The thing to remember is that GOV bought your gold for $ 20 and then revalued it to $ 35. They simply devalued the dollar. While there are many risks involved with revaluing the dollar, it is probably inevitable. If the price of gold has ALWAYS been adjusted to the volume of dollars [historically], it's not a bad bet. GOV would not be stealing your gold. They buy it at face value. Will it be bought at $ 42.22 an ounce or will it be bought at the prevailing market value? Dunno.
75% of gold is held privately. It must be very attractive to GOV. The current value of U.S. gold is only equal to 1.5 % of the national debt. Should gold be radically revalued, every ounce that could be squeezed from private holders would be worth quite a bit. Much of the gold could be easily tracked down. Bullion Vault alone holds 18 tons.
FOFOA showed goos calculations that gold would have to go to about $ 45,000 an ounce to cover ALL currency and credit instruments. There is a lot of good info in his compositions;http://fofoa.blogspot.com/2009_08_01_archive.html
If the world? goes back to a gold standard after "economic convulsion the likes of which the world has never seen.", we can expect an end to deficit-financed wars.
There is ONE item of importance above ALL other items. If food commodities are priced MUCH higher, it will price a billion people out of the market. There have already been a few hundred million people added to the "starving" by the latest market manipulations of GS. The world will only tolerate just so much manipulation before they strike back. India will nationalize foreign assets before they will starve out 250 million. Oil will be traded for food by those who have it. Those who have nothing to trade will starve.
I don't post things because I believe that they are the absolute truth. I post them because I believe that they should be considered.