Re: The fear factor....PPT
in response to
by
posted on
Aug 14, 2008 06:27AM
Their primary mission of the PPT is to keep the perception of value in the US dollar.... There are trillions of dollars in bank accounts all over the world. Those notes are held because the perception of the individual, company or country is that they are a safe haven for wealth preservation.
If there was a run on the US dollar.... the resulting turmoil would be catastrophic.... Look what happened to the Brazilian Reil when it fell apart. This event was devistating for anyone holding Reils..... or Brazilians holding US funds within bank accounts, as those funds were seized and converted into reils.
It took decades to sort that mess out for Brazil.
If there was a loss in confidence in the US dollar, literally no country would be unafected.... and which currency would investors turn too....This is why the attack on gold....to keep the perception of value alive.
The amount of gold is miniscule compared to the amount of us dollars in circulation... Do the Math!
The US currently holds some 7500 tones of gold.... Tones just sounds so large that's why it's reported that way.
There are 32,152 oz in a tone of gold and @ $900 us / oz that is worth only $217 billion dollars... Pretty insignificant amount to back trillions of US dollars in circulation....
keep this in mind... 32150 oz x gold price/ oz ....Today that is $26,363,000 / Tone @ 820 / oz
Now take note that the US is the single largest gold reserve in the world.... The US has convinced many other nations to abandon gold while the supposedly retained theirs.... Part of keeping the illusion alive.
This is why all countries use the term " Tones" to sell gold.... Or to indicate their holdings. To keep the perception of control and value of their reserves... To create the illusion that they have more gold than your dollars/ Euros/ Pounds etc are worth... It is the elelephant being scared by the mouse. If the elephant ever takes flight... The mouse will be flatened.
This is why the assault on gold.... They simply cannot let gold become the safe haven for capital.... There just isn't enough of it to go arround...
Money flow.... The Opec nations used to complete the circle of transfering oil for cash to stocks and assets within the US... This flow is interupted now... and thus the rise in gold price.... some of the oil cash finding other stores of wealth other than the US dollar... The transfer of wealth is in motion.
Which beges the question.... so where do I put my wealth, if cash is not even safe?.. The value of Fiat currency is only the collective perception of those holding that paper..... and if the perception breaks down ... so does that store of wealth.