Mike10613

U.S. Treasury Owned Gold: What Can It Buy?

Paper money is like a stock or share certificate. It promises something. On our currency in the UK, notes say We Promise to pay the Bearer the sum of five pounds ( of whatever the denomination of the note is). That refers to it's weight in gold. However, the Bank of England and therefore the Crown, doesn't deliver on that promise and hasn't done so since the abolision of the gold standard. Of course, the Bank of England doesn't have to bring back the gold standard to make paper money worth something again. It can use any liquid asset to back the currency; but gold reserves must be one of them. It can use silver, property, natural gas reserves, oil reserves, even the air we breathe as that is used to transmit radio frequency electro magnetic waves as liquid assets as well as gold.. The bank made a big mistake selling gold reserves cheaply and should start buying gold and with a wide spread. Maybe buy at $900 an ounce and sell gold sovereigns at the equivalent of $1,000 an ounce or more. It could also buy shares in ailing companies like banks at a big discount. It could raise money by increasing interest rates to realistic levels and stop robbing people of their life savings. It could in this depression scrap the tax disk on cars and add a little to petrol and diesel tax. It could scrap the television licence - these two measures would lead to greater efficiency and combined with realisitic expenditure at the BBC and funding of the BBC with public service announcements; we would see a large amount of money collected by goovernment and less being wasted. The excess could then be used to rescue the economy. With no car tax to pay or TV licence people would spend money in the shops and that alone would help lift us out of the depression; both economically and psychologically. The various agencies that are supposed to regulate the economy should be made to do so; OFGEM is a prime example that has failed miserably and led to massive increases in the price of gas and electricity because of mergers and takeovers that limit competition and encourage monopoly thinking. Politicians have no idea when it comes to understanding economics and their economists are stuck in the past reading about the great depression and trying to talk us into thinking this is a recession and everything will be fine next year! Will it hell!