Thread: MichaelR what do you think of this

The big players know, the US holds a huge amount of gold. The minute gold is much more valuable than the dollar may trigger a desperation sale from Fort Knox that will kill all the cash value stored in gold. No one is more paranoid than gold buyers, not even silver buyers.

They have good reason for paranoia. The US government has to kill off trillions of dollars held by trade rivals. If the trade rivals pile their loot into gold, the US will sell off its gold and thus, crash that market value and then restart our currency again.

We have one great danger here: if China and Japan both decide, at the same time, to buy up all of the gold dumped by the desperate US officials, they might decide, together, to restart world trade using a gold standard. This is a distinct possibility. It would, of course, put the US out of the eternal trade deficit trap, which is a good thing in the long run. But it would also mean we kiss our car culture goodbye. No more cheap oil for us.

It's from a blog.

I'm just curious what you think of it.

YEN STRONGER, US DEMANDS STRONGER YUAN � Culture of Life News

Good blog, thanks.

The threat of the government dumping gold while a concern it is un-doable. We have debt that is backed by that gold, it is equity. If you tank the value of the equity then and the dollar takes a tanking because of it then the debt will be overwhelming. You would be essentially shooting your self in the foot.

Now if the world were to start trading on a gold standard today, then the amount of dollars printed by this country would be worthless. We simply have too many dollars, and inflation would be akin to Zimbabwe's, and thats no joke.

In the blog it states these arrogant treasury folks accuse China of manipulating their currency, well this is legal and everyone does it. What pisses these people off is the simple fact that the yuan has value, when they took the rates to zero, they essentially destroyed the dollar. We are in fact living on borrowed time.

So quick like, I do not thing even our government is foolish enough to dump the gold onto the market, nor do I think they can. Here is an example of why, the UK is going down, maybe this month, maybe next, they also have huge gold reserves, they know not to dump it, and instead they would prefer too bring the value up. What good that would do I am not sure, they could only safely borrow on it, and that is the reason for the upcoming and imminent collapse in the first place.

Were in quit a pickle BN, were in a damned if we do and damned if we don't. I for see a new funding system coming our way. The UK is expected to hit the IMF up for funding in the next couple of weeks, we are next.

They have good reason for paranoia. The US government has to kill off trillions of dollars held by trade rivals. If the trade rivals pile their loot into gold, the US will sell off its gold and thus, crash that market value and then restart our currency again.

The above assumes that rival currencies can be devalued without ours doing the same, it is a totally wrong assumption.

I think if I were in the governments shoes and I wanted to manipulate the dollar upward, I would buy gold. It only tends to be another avenue of debt, so the effect would be short lived but it would straighten the dollar long enough and weaken the Yen and Yuan, Pound, and Euro long enough to clear some debt. Short term solutions however will not work for us. If I wanted to support my neighbors I would have to go into massive debt. They would benefit but I would hurt. This is essentially what this country has been doing, and it is set to get worse. We need to cut spending but little issues like cable TV boxes are futile. We need to shut down bases, end the wars, cut massive government programs to the bone, and pay off the debt. Last year the interest alone was 500 billion dollars, that we know of. Add that to the projected 1.2 trillion deficit, and the bailouts, and well it is very easy for a blind man to see that this country is bankrupt. Devaluing gold will only hurt!

Thank you.

Originally Posted by Blueneck

Thank you.

I hope it made sense, it is an odd thing, the gold market. I buy it so I can sell it, the governments hold it as collateral, so the rules change drastically.