Key point is that gold & silver are a small fraction of any nations total assets - besides buildings, real estate, power plants, oil wells, hospitals, there's copper, wheat, highways, cars.
The bonds bought from Fannie and Freddie are backed by real estate.
The treasury bonds are backed by the taxing ability of the Federal Government. Those taxes hit not only US individuals and corporations in the US, but to some degree activities of individuals and corporations outside the US.
So some of the profit that ConnocoPhillips makes selling Alaskan oil to Japan shows up at least in US salaries, which are taxed. Some of that is the ability to tax corporations like Motorola, which invests FDI in China, and earns money there.
The ability of Motorola to earn money in China depends on the stability of the Banks in China, which is now backed up by holdings of Treasury bonds.
If you notice a certain circularity here, like the Japanesse corporate cross holdings, yes, that is there... |
