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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bob Dobbs who wrote (42825)	10/13/1999 6:41:00 AM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116790

An interesting side note re: your $42 per oz Ft Knox Gold val post, Bob. The precise number is $42.22 and the year was 1973 when that re-val officially took its place in our miserable financial history. Secondly, That $42.22 represents the 3rd official devaluaion of the US $ by our very own govt since the first official peg of $20.67, set by our Congress in 1837 no less. (footnote below) Furthermore, that revaluation of Ft Knox Gold came a full two years after our "dollar" was stripped of it's gold backing by Nixon, and allowed to float against a basket of currencies. Doing the math will point up one very glaring fact: Economists in this country use 1920 as the "basis year," which is another way of saying, the time when the US$ was pegged at $1=$1. Based upon the gold calculation in effect in 1920--$20.67--, the revaluation of gold to $42.22 in 1973 in effect completed the cycled of devaluation of our greenback. In POF, it put us into a negative buying power situation of the 1920 dollar now being worth a negative 4% of its 1920, 1:1 basis. The first big chunk of official dollar devaluation occured shortly after the gold confiscation actions undertaken by our government against her own people of a 69% deval when gold was revalued from $20.67 to $35 in 1934. Then in 1972, Au was revalued again at $38, which then made it an 84% devaluation of our 1920 basis. And then the 1973 reval to $42.22 completed the decimation of our greenback by our fearless gov't, now a shocking NEGATIVE 104% of our 1920 basis. Economists then were left with a conundrum: fess up to the obvious decimation or "pick a new basis year/point. Guess which choice they made??? O/49r worldaccessnet.com FOOTNOTE Prior to the $20.67 gold/dollar peg established by Congress in 1837, our dollar was based upon a 24.75 grain gold dollar with a world price point of $19.39 per 480 grain troy ounce calculation. For a visual comparison to any who have never seen one of America's early Gold Dollars, visualize a button down collar button for circumference comparisons and a fingernail's thickness for that dimensional comparator. Sound as a dollar used to be a phrase this country was proud of. Not anymore. The EURO and the Swisse' are the only two major currencies backed by anything more than governmental 'hot air' and we lead the FIAT PACK in hot air production!!!