Quote:
Originally Posted by Locke
Alright, I've heard this argument before where they want to stockpile Gold in order to either re-attach its' value to currency or in order to mortgage against the national debt.
2 things:
First of all, even if they got market value for their stockpile, its such a pitiful drop in the bucket its not even worth discussing.
Second of all, if they were to drop 8000 tons of Gold on the market they'd get pennies to the dollar, even if they did it gradually, and in fact, do so much harm to the market that I cant even think of most of the ramifications.
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True enough...in a 14 Trillion Economy it is a drop in the bucket....It may happen at some point though as with the amount of paper currency printing we are seeing there is always enough Gold it is just a matter of price...A lot of stability in world trade could be acheived....We had a Gold Standard for over 200 years starting in the 17th century and Gold Standard actually has a much longer and more succesful track record then paper money. There are lots of ways this could be structured and you could have a new sort of global super currency sponsored by the IMF and peg it to the price of Gold or have a basket approach as Brazil come out with last night...China, Russia, Germany etc. aren't going to just stand by and let the Fed print,print,print when on any given day of the week the Fed could be broke/banrupt and we wouldn't even know it....