- 29 Nov 2017 07:11
#14866647
Currently the US holds 195,203,000 troy oz of gold. I'l call it 200,000,000 oz.
There was about $5T in cash and coins in circulation in 2013.
In 2017 the total US debt is about $16.5T [including the Soc. Sec. T-fund].
If the current gold price is assumed to be $1000/oz, the 200 million oz are worth just $200B.
This isn't even half of the dollars currently in circulation.
To get on to the gold standard the US would have to totally default on all the debt and revalue the dollar to just about $2500/oz. More than double the current price of about $1000/oz.
This would destroy the US economy and bankrupt all the pension plans and insurance comp. in the US and many of the world's banks. The result would be worse than can be imagined.
Holders of gold would do well if they can survive the economic storm that would result. But, I find that very doubtful.
There was about $5T in cash and coins in circulation in 2013.
In 2017 the total US debt is about $16.5T [including the Soc. Sec. T-fund].
If the current gold price is assumed to be $1000/oz, the 200 million oz are worth just $200B.
This isn't even half of the dollars currently in circulation.
To get on to the gold standard the US would have to totally default on all the debt and revalue the dollar to just about $2500/oz. More than double the current price of about $1000/oz.
This would destroy the US economy and bankrupt all the pension plans and insurance comp. in the US and many of the world's banks. The result would be worse than can be imagined.
Holders of gold would do well if they can survive the economic storm that would result. But, I find that very doubtful.