…even at $20,000/ounce, 8,200 tons of gold is only worth $5.7 trillion-about one-third of the $17 trillion in cash allegedly being held offshore. Anyone holding that $17 trillion would know he had only a 30% chance of redeeming his fiat dollars for gold and so would try to instantly send his fiat dollars into the US trying to beat all other competitors.
by Alfred Adask, The International Forecaster:
Steve Forbes (Forbes Magazine) recently warned that government must link the fiat dollar to gold or face another Great Depression.
If that’s true, we’re going to have another Great Depression because government can’t link the current fiat dollar to gold.
Why? Two reasons:
1) There are reportedly up to $17 trillion of our current fiat dollars being held offshore. What do you suppose would happen to those $17 trillion if Obama announced that they were all backed by gold at, say, $5,000/ounce or even $20,000/ounce?
Those intrinsically worthless $17 trillion would come flying, pouring and stampeding back into the US to be redeemed for physical gold. The influx of $17 trillion might cause US inflation to go hyper.
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