GOLD IS A RELIC ?

GOLD IS A RELIC

WRITE YOUR VIEWS

In discussions how often do we hear there is not enough gold to support the PRINTED MONEY AND FINANCIAL TOOLS FOR COMMERCE?

The FED says gold has no value it is a relic of the past:

SO TELL ME WHY THE FED KEEPS FORT KNOX? PAYS THE RENT FOR IT? WHY NOT SELL IT IF THEY HAVE NO USE FOR IT AND IT HAS NO VALUE

Geoffrey

 

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The answer is simple: There is no reqirement that a currency be backed by gold, silver or anything else.

And please give up THE GOD BLESSED ALL CAPS

 

HE MIGHT WANT TO MAKE SURE THAT OUR HARD-OF-HEARING READERS DON'T MISS THE MESSAGE.

 

Snerds........back money in snerds. I've got millions of 'em.......

 

All value is assigned by virtual reality. Truth is, mankind declares a mental value to something and we all live with it. Fiat currency, gold, silver, diamonds, what ever. It is all a fantasy in the minds of humans. Tangibles like food, water, air etc... are what we all need and the rest is not as important. We are all victimized in this philosophy. That's why God should be removed on our currency. He really doesn't want to be associated with it. Give to Caesar what is Caesar's. Give to God what is his own.

 

Faith.....faith in Ceasare, faith in God, faith in the US Government........that's what keeps things buoyed.

 

Fort Knox is.... empty

Or so the theory goes. They haven't let an audit be performed since the late 60's I believe

And gold is a relic in terms of being tied to current exchange since Nixon took us off the gold standard. So a relic in that sense, yes.

 

Gold certificates were recalled by the government in 1933 for a simple reason: The government did not have enough gold to redeem for the total amount of gold promised by the certificates.

 

The Fed creates money through credit. Their system has no place for gold and relies entirely on people agreeing to pay back debt. The Fed doesn't see gold as important because its not a part of their system.

Also, the Department of the Treasury is the guardian of the US gold depositories at Fort Knox and elsewhere, not the Fed.

 

They may have said its a relic but govt leaders are not complete morons. They know gold is valuable and has been for eons. We all know gold is a safe haven too so of course our leaders will try and temper gold buying instead of mindless consumerism

 

One could also say we are all empowered by this philosophy.

Here are five good reasons why I don't mind fiat currency:

1. Backing a currency with PM requires the organization issuing currency to obtain enormous amounts of PM. Those PM have to come from somewhere, and they have to be paid for by someone. If the treasury were to obtain enough PM to fully back our currency, who do you suppose would foot the bill?

2. Backing currency with PM unnecessarily increases the cost of PM for other uses. Believe it or don't, there are more legitimate uses for gold and silver than simply being used as a store of wealth.

3. Fiat currency rarely loses all of its value. When it has in the past, it was usually in third world countries that had enormous problems with government corruption. When such corruption exists, do you really think any stockpile of precious metals intended to back a fiat currency would still be available after such a collapse?

4. As our population and the value of all the property in our country increases, the amount of currency also needs to increase to accommodate the increase in wealth. This means either the value of PM would necessarily need to increase (benefitting all holders of PM, not just the US), or we would need to continually increase the amount of PM held in reserves (benefitting the US, but at an expense to the taxpayers).

5. Many people already suspect there's no gold in Ft. Knox, or at least not as much gold as there should be. If we already don't trust them with our gold, why on Earth would anyone want to buy and entrust them with even more gold?

 

I don't trust them with anything - particularly something of high value.

Gold is an international store of relative value. If you look at it with FIAT currency and purely from an American standpoint, some of these points make good sense.

When you look at the global economy, gold is an equalizer of some sort. As nations and their currency go up and down in value, so does their relative value of currency to gold.

A nation getting weaker stockpiles gold to gain a foothold on their own inflation (i.e. Greece).

A nation with a good foothold stockpiles gold - that drives prices up (i.e. China) although China is cooling as of late.

So to me it's a comparative equalizer. How much stored - how much being acquired, and how strong their currency is.

All I know is that with the massive inflation we've seen in this country (cost of same goods/services increasing) we are seeing a massive devaluation of our currency. A dollar ain't what it used to be. So gold and silver are going to go up.

Taxes, healthcare & benefits, minimum wage increases, regulatory costs - all driving the prices up. That's inflation.

 

You weren't around in the 1970s or 1980s, were you?

 

Yes, I was. Unfortunately I was off spending my silver dollars from Grandma at the candy store...