- A revaluation of the gold price higher is coming very soon. 10x higher is conservative IMO. Gold is the perfect debt extinguisher.
- Gold Deficits, Fort Knox And a Reset
by Gary Christenson, http://deviantinvestor.com/
Everyone knows that government expenses and deficits are out of control. Think U.S., Europe, the U.K., Japan, and others. So what?
* Borrowing today supposedly brings spending forward from the future, so future spending should be curtailed. It hasn’t happened so far.
* But no government will reduce spending so they must either borrow more or devalue their currency via “money printing,” various forms of QE – bond monetization, or increasing taxes. Not sustainable!
* Global debt exceeds $200 Trillion – a number so large it is essentially incomprehensible. S. official debt is about $19 Trillion with unfunded liabilities in the $100 – $200 Trillion range. Again – incomprehensible.
* All of the above create problems – huge problems. Ignoring those problems makes the ultimate “reset” worse. Unsustainable!
Everyone knows that the U.S. officially holds a massive supply of gold in the Fort Knox Bullion Depository – about 147,000,000 ounces of gold. It hasn’t been audited in 60+ years, but let’s pretend it still exists. To put the debt, deficits and craziness into perspective, compare debt and deficits to ounces of gold and to the gold officially vaulted in Fort Knox.
First: Examine the official U.S. national debt (in $ millions) on a log scale since 1970. The exponential trend is evident. Note that the national debt has gone up from under $400 billion to nearly $19 Trillion – $19,000 Billion. (chart to of post)