Gold Reserve

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njp's picture
njp
Status: Member (Offline)
Joined: Sep 16 2008
Posts: 6
Gold Reserve

The U.S. has about a trillion dollars worth of gold (?). This can be considered an asset. It is never mentioned by the media, experts, government spokesmen etc.

How could it be used? Who is in charge of it? It must be of some potential use.

This is not addressed by the Crash Course. Google shows that people are thinking about it 

randplaty's picture
randplaty
Status: Member (Offline)
Joined: Sep 17 2008
Posts: 2
Re: Gold Reserve

The United States' holding of gold is worth approximately $241 billion (July 2008). Although the United States has the largest reserves of individual countries, in total the eurozone gold holdings are greater (11,065 tonnes as of December 2007).

 

- according to wikipedia

 

I am assuming that the US uses this gold reserve to print American gold eagles, but I am not sure.  I know they stopped minting American gold eagles recently due to increased demand.  At least that's what it says on the Blanchard and Co. website.   Who knows what that means about the American gold reserve.

ivoryjackal's picture
ivoryjackal
Status: Bronze Member (Offline)
Joined: Oct 10 2008
Posts: 88
Re: Gold Reserve

there are those who believe and have amassed evidence to the effect that the us government might actually be pretty close to out of gold.  much in the same way that their statistics on inflation and gdp are misleading, to say the least, they apparently allow gold in their possession as well as gold which has been leased (meaning physically given away with the promise to return a certain percent of the original amount per year.  lease rates up until september were less than one percent and with the dollar value of gold increasing at double digit percents recently, you can see why anyone with access to the treasury's gold lease might take advantage of it) to be accounted for under 'gold holdings'.  with this (enron style) accounting method, fort knox could theoretically be empty but the treasury is allowed to claim it still owns all that gold (because it owns a promise from some big bank to pay it back).  i'm not terribly well versed on the subject but would refer you to:

http://www.gata.org

there's also quite a bit of evidence to the effect that the central banks of europe and america will sell gold onto the market (flood supply) in order to keep the price low and conversely keep the relative value of their currencies greater (as gold is the only gold backed currency still in existence in the western world, it's the only good barometer of the health of fiat currencies).  it's not that big of a secret, actually.  alan greenspan announced publicly that he and the british central bank, i believe, had agreed to this policy.  how can they flood the market if they've already leased all their gold out?  easy, the price in dollars (and euros, pounds, yen, etc) of gold is determined on the comex and most exchanges there are settled in cash - the metal is never demanded - allowing a huge opportunity to bluff and thereby inflate the apparent supply much in the way that paper dollars were overprinted under bretton woods agreement in the 50's/60's.  again, the above site is a good starting point.

one way or another, they're putting it to good use.  they'll never offer it up as debt collateral, though - at current prices the entire stock would disappear in a blip of a fraction of a percentage of the payment of yesterday's debt interest.  if they actually do have any i'm sure there's some economic end game strategist who has figured out that they'd better keep it for the potential that one day other countries might no longer accept federal reserve debt as payment for actual goods.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Taxing Seized Gold?

Just a dumb question, but if they Executivelly Repo the gold - ugh, will they tax the "seller?" 

 

God, I'm laughing at this. If so, capitol gains on an investment and sales tax? 

 

Perhaps too, I should ask: Yah think that maybe a special registration, liscense, permit will be required (purcashed I should add)?

DanS's picture
DanS
Status: Member (Offline)
Joined: Apr 6 2008
Posts: 21
Re: Taxing Seized Gold?
That's the best you can hope for.  They might blame you (and me) for causing the "economic crisis" and put us in handcuffs.  Wink

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