2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 374.22

-0.2%

Nov 21 4:00 PM EST

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To: THE ANT who wrote (75610)	6/25/2011 1:23:50 AM
From: elmatador	Read Replies (1) of 217975

U.S. would need to acquire gold to back up their USD and promise to redeem USD for gold. This poses two problems one of availability of gold and another one of credibility. First US would need to purchase gold to back the USD up. Gold is in short supply and would become even more so as the likes of TJ hog the metal. US currency starts going down, as people will ask for more USD for the gold they have. If US currency goes down, people trust in paper moneys vanish. They rush for physical assets: oil, food commodities, farmland, whose availability is also limited. Let's say it works the conversion to a semi-gold standard: There is a problem of credibility here. Second once biten twice shy. People would not trust the USD and the promise that the US would redeem their USD for gold as they know Nixon renegaded in that promise.

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