Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (44309)	12/29/2008 7:28:45 AM
From: que seria	Respond to of 217657

carranza2: Perhaps the $42/oz pricing of gov't gold is meant to allow a fig leaf of deniability that the gov't has reduced the [value of the] gold backing the dollar. The hand-in-cookie-jar rationale for a gov't found to have "leased" much of the nation's gold would be that upon revaluing a physically diminished hoard of gold at market rates, the value of the gold will be as high as or higher than now calculated at $42/oz. The gov't plays word games in all directions to avoid accountability. (Recall hedonic pricing when it served gov't interest in calculating CPI inflation). Keeping the artificially low valuation of U.S. gold, even now, is consistent with lease/sale of U.S. gold. Not saying it happened, just that it would afford some rhetorical cover. Our currency is backed, at the end of the day, by the full faith and credit of the US as well as by 262 million ounces of gold whose existence has not been audited since the 1950s. This gold is valued at $42 an oz. for reasons I do not comprehend. Just a few years ago, when I first read the internet musings about leasing of part of U.S. gov't gold stocks, I rejected the idea on the basis that while our gov't is bloated and predatory, and the people running it are mostly power-mongers, they are not so reckless. I don't suppose that any longer.