FRNs are backed by gold

[midnight rambler]

http://realitybloger.wordpress.com/2011/11/21/federal-reserve-notes-are-backed-by-gold/

[mamboni]

http://realitybloger.wordpress.com/2011/11/21/federal-reserve-notes-are-backed-by-gold/

More silly numbers games that assume that the 261,000,000 ounces of gold bullion that hasn't been independently audited in 50 years is in the physical possession of the "oh so transparent [not]' Federal Reserve - a gigantic assumption. Then, at [free gold] market prices, one could argue that all the Federal Reserve notes [physical currency] enjoy 40% gold backing. Of course, physical currency represents an infinitessimal small fraction of the total capital money supply. So the entire exercise is silly and pointless.

Apparently Ben Bernanke hasn't read this blog - he said gold is not money and the Fed holds it purely out of 'tradition.' Yes, that's exactly what he said.

[po boy]

Doc nails it!


http://www.youtube.com/watch?v=2Dj9v9s9buk&feature=related

[midnight rambler]

How do we keep our balance?? Tradition!


http://www.youtube.com/watch?v=beT1XD0sHbs

[Sparky]

To follow up mamboni, the M3 (total) money supply is about $15T, which means each FRN is backed by 3 cents worth of gold at the current price of $1700 per ounce. Gold needs to get to about $50,000 per ounce for there to be a 1:1 backing.

Another way to look at it is that each dollar is backed by about 1/100 of a grain of gold, which is 2/100,000 of an ounce.

[po boy]

All this time I was under the assumption that FRNs were backed by the full faith and credit of the US and the people were losing faith and unable to obtain credit.

[midnight rambler]

All this time I was under the assumption that FRNs were backed by the full faith and credit of the US and the people were losing faith and unable to obtain credit.

Gee, you don't think this is part of some grand scheme do you??

Naw, too far-fetched.

[big country]

To follow up mamboni, the M3 (total) money supply is about $15T, which means each FRN is backed by 3 cents worth of gold at the current price of $1700 per ounce. Gold needs to get to about $50,000 per ounce for there to be a 1:1 backing.

Another way to look at it is that each dollar is backed by about 1/100 of a grain of gold, which is 2/100,000 of an ounce.

Why do you use an unreduced fraction? Isn't that something that we are taught in basic match to always reduce your fractions? Just curious if there is a reason here that I am missing?

[sirgonzo420]

Why do you use an unreduced fraction? Isn't that something that we are taught in basic match to always reduce your fractions? Just curious if there is a reason here that I am missing?

Sparky is in Massachusetts.

Their math is different up there.

[po boy]

Gee, you don't think this is part of some grand scheme do you??

Naw, too far-fetched.

Not that faith MR, but as far as faith in the creator yep all according to plan. Faith in the FRN, well it never was 371.25.

[Ponce]

If you had a beautifull wife would you hide her away?.....if everything was A OK in the US, would the poleticians hide the evidence away from us?........you believe what you have been thought to believe thanks to the brain washed techniques that has been implemented over the years.....................of course the older generation recognises what is going on for what it is because we can compared the past with the present.............................but........... ........to the new generation this is all that they know so that to them everything is as it should be........or so called "normal".

[po boy]

If you had a beautifull wife would you hide her away?.....if everything was A OK in the US, would the poleticians hide the evidence away from us?........you believe what you have been thought to believe thanks to the brain washed techniques that has been implemented over the years.....................of course the older generation recognises what is going on for what it is because we can compared the past with the present.............................but........... ........to the new generation this is all that they know so that to them everything is as it should be........or so called "normal".


not so sure the young uns think it's normal, isn't that what OWS is all about.

[Neuro]

Fort Knox is the Pandoras box of our times. But it is full of Bull-shit! The gold is safely stored away with the owners of the Fed the Rothschilds. The main reason why the gold can't be audited is that it is not there. The illusion that it is there is as powerful as it actually being there, as long as no-one looks!

[midnight rambler]

Fort Knox is the Pandoras box of our times. But it is full of Bull-shit! The gold is safely stored away with the owners of the Fed the Rothschilds. The main reason why the gold can't be audited is that it is not there. The illusion that it is there is as powerful as it actually being there, as long as no-one looks!

It's a case of Schrödinger's cat, without actually looking all possibilities exist and there is no way of knowing for sure without looking.

http://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat

[Sparky]

Why do you use an unreduced fraction? Isn't that something that we are taught in basic match to always reduce your fractions? Just curious if there is a reason here that I am missing?

Because it makes it easier to visualize the decimal translation to 0.00002.

For example, quickly tell me how many percent this is:
.
.
.

30/250.
.
.
.

Now, tell me how many percent this is:

.
.
.

120/1000.

.
.
.
For which was it easier to visualize the magnitude?

[madfranks]

If the FRN was backed by gold then gold and the FRN wouldn't be fluctuating in value against each other every day. The FRN would need to be fixed to a certain amount of gold in order for it to be "backed" by gold in any sense of the word.

[Spectrism]

To follow up mamboni, the M3 (total) money supply is about $15T, which means each FRN is backed by 3 cents worth of gold at the current price of $1700 per ounce. Gold needs to get to about $50,000 per ounce for there to be a 1:1 backing.

Another way to look at it is that each dollar is backed by about 1/100 of a grain of gold, which is 2/100,000 of an ounce.

Aren't you only talking about US currency? What happens when the world goes to a gold-backed currency?

[mamboni]

Real gold backing is the ability for the dollar holder to exchange his dollar for the prescribed weight of gold, without restriction, any time, no questions asked. Anything less than this is a sham. Bernanke had the temerity to repeatedly lie to the world, about gold and about the creditworthiness of the dollar [FRN]. He obfuscates with big words and technobabble. But his eyes are full of fear. Because he knows he is the front man for a con, a sham, a fraud. There is nothing backing the dollar but bluster and bullshit. These bastards have sold their gold over the last forty years, releasing it to market to suppress gold prices and support the illusion of dollar strength. They have been in slow retreat and now their backs are to the wall. Bernanke is so shameless he even denigrates gold and a pedigree of 5,000 years of wealth preservation while having the temerity to promote his bullshit paper imitation of wealth. They don't have the gold. The only thing that saves them from discovery and disgrace is a lazy, ill-informed gullible public that can't even see that they are being played for chumps and stupid goyim. But people are waking up. And the banksters like Bernanke know that it is only a matter of time until they are exposed for the monetary 'music man' fraudsters that they are. They always have their eyes on the exit, ready to bolt the instant the shit really hits the fan. And it will, very soon, it will.

[JDRock]

Aren't you only talking about US currency? What happens when the world goes to a gold-backed currency?
bwahahahaaaaaaa !!! never happen as long as rothschild holds the strings....

[Sparky]

Aren't you only talking about US currency? What happens when the world goes to a gold-backed currency?

Yes, but this story is about the backing of U.S. dollars by gold that is held by the U.S.