tag:blogger.com,1999:blog-27697009.post2806025673189391503..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Geithener Sends US Gold to China???Jim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-27697009.post-72482772762243441592009-11-26T00:33:20.203-08:002009-11-26T00:33:20.203-08:00Thanks Jim for what I would call a generous respon...Thanks Jim for what I would call a generous response<br />Frakrakfrakrakhttps://www.blogger.com/profile/10110027067402980842noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-2537909211790513842009-11-23T21:55:08.508-08:002009-11-23T21:55:08.508-08:00Hi Frakrak
I think our country has about 8,000 me...Hi Frakrak<br /><br />I think our country has about 8,000 metric tons of gold not the 11,000 you mentioned. Your suggestion that the US might sell 2,000 metric tons to China sounds pretty acceptable theory wise. All we need to do is keep track of new IMF gold sales, we know whose doing the selling.<br /><br />The real factor to realize, is that there are people out there that have very little faith in the dollar. Can't say that I blame them.<br /><br />Your comment is spot on, I don't see any error. <br /><br />Take careJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-40639108445045062292009-11-23T17:59:21.873-08:002009-11-23T17:59:21.873-08:00Oops just read your correction, I'll put this ...Oops just read your correction, I'll put this one squarely with my primary school maths teacher!!<br />regardsfrakrakhttps://www.blogger.com/profile/10110027067402980842noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-33585390030680419492009-11-22T14:05:55.332-08:002009-11-22T14:05:55.332-08:00Jim here’s a ”what if,” say, in the next year the ...Jim here’s a ”what if,” say, in the next year the U.S. dollar has a wild ride and slides another 30% in value against major currencies. The gold price seems to be set on an inverse pricing course to this! Say the gold price reaches $2000 per troy ounce. Would this place the U.S. in a better position to meet its debt obligations to China?<br /><br />If the convention is 100 bill per trill (as it is in this country), then your government could cover it’s debt with China, considering they (Chinese) have bought debt in U.S. bonds. My math for this would be a little over 2000 metric tons to flick the Chinese and give a totalitarian regime a lesson in capitalism 101.<br /><br />The U.S. would still have 11,000 metric tons (conservative estimate by the world gold council, if you minus the 2,000 MT), then go back on the gold standard. <br /><br />I am so glad I passed my math in primary school …<br />cheersfrakrakhttps://www.blogger.com/profile/10110027067402980842noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-23455050583370910252009-11-21T19:09:23.234-08:002009-11-21T19:09:23.234-08:00Hi Dearieme
I agree, it smells like blackmail. I...Hi Dearieme<br /><br />I agree, it smells like blackmail. I heard Giechner in front of Congress on the PBS channel today mentioning that the IMF was to get 100 billion from us. I am not quite sure what that means, but I would expect to see a few more large gold sales staggered in three month intervals. <br /><br />I can't imagine any country selling gold for paper currency. This "sale" was to retire a debt.<br /><br />Thank you for your comments, and take care.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-32181181712248899892009-11-21T08:32:02.756-08:002009-11-21T08:32:02.756-08:00The trouble with giving China gold is that in just...The trouble with giving China gold is that in just a few hours they'll want some more.deariemenoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-8399726075526721012009-11-20T22:37:53.656-08:002009-11-20T22:37:53.656-08:00Hi Tyrone
Believe it or not the idea is not new. ...Hi Tyrone<br /><br />Believe it or not the idea is not new. Counterfeiters in several countries in the old Soviet Union print a lot of US $100 dollar bills. Nobody is much the wiser, the people there, think the money is real.<br /><br />Armenians in Glendale were paying a few mom and pop shops to deliver cash to relatives in Armenia. You gave them real dollars here and they issued phony ones over there.<br /><br /><br />I wrote a letter to the FBI advising them of what was going on and they gave me a nice thank you note and did nothing.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-9785257892499869292009-11-20T22:05:10.869-08:002009-11-20T22:05:10.869-08:00Hi Anon 11:58
It seems like petty change, but tha...Hi Anon 11:58<br /><br />It seems like petty change, but that is a very big chunk of gold.<br /><br />The Treasury can't print gold and it looks like they just sold some to keep China from tipping over the apple cart.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-6228527676211280282009-11-20T21:56:29.687-08:002009-11-20T21:56:29.687-08:00Hi NMMM.NU
When a country buys gold, it either ha...Hi NMMM.NU<br /><br />When a country buys gold, it either has to print currency or buy it with foreign currency that has been used to purchase local product. Printing money is inflationary and the gold purchased serves no real internal purpose.<br /><br />Now if a country like China sold a lot of goods to say the US and was paid in dollars, a problem could arise. The gold is worth more dollars every day. So holding a trillion dollars in US currency, as gold went from $1,000 to $1,100, the Chinese took a 10% hit on their US denominated debt.<br /><br />The Chinese see our printing presses running and make one phone call. They call Geithner and tell him that they are not taking any more American dollars; they want real money, gold. Any future imbalance in trade between the two countries would be made up with gold. <br /><br />Cutting off our credit line could have set off a world panic which wouldn’t have been good for China (the creditor) and the US (the debtor). Geithner probably suggested a trade of gold for dollars to show our good faith. This transaction gives China something more tangible than an American dollar. So they meet in a hotel in India and sign the papers.<br /><br />China is the only country in the world that has nothing to lose with this trade. The people of India love gold as individuals; the country itself needs capital to finance their economy not government owned gold.<br /><br />Look at it this way Germany had to pay war repatriations after WWI in gold. Common sense says that Germany could print Marks and buy gold and pay off the debt. It didn’t quite happen that way. The US printed a hell of a lot of paper. You can’t print gold and everyone except Geithner seems to realize that fact.<br /><br />I caution everyone, these ideas are just my musings, there is very little fact to base any of this on. To me though, it appears to fit together very nicely.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-86491784705528876952009-11-20T03:25:20.426-08:002009-11-20T03:25:20.426-08:00I also thought China will buy it, but I do not thi...I also thought China will buy it, but I do not think India is middle-man. India also likes gold.NMMM.NUhttps://www.blogger.com/profile/03498174084265748638noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-39197606928649686072009-11-19T23:58:26.430-08:002009-11-19T23:58:26.430-08:00403 tons of gold = 12 billion? 12billion is spare ...403 tons of gold = 12 billion? 12billion is spare change to wall street, or to Washington. <br /> 12 billion into 1.5 trillion is not ~10%, it is under 1%. Its more like an interest payment than a down payment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-18587448097788673982009-11-19T23:08:40.440-08:002009-11-19T23:08:40.440-08:00Hey, I think Joe's on the right track. Use ou...Hey, I think Joe's on the right track. Use our mint presses to crank out paper currency for all other countries. Why debase your own currency when you debase your neighbors. Simply pay off your debts in the foreign currency. Brilliant!!Tyronehttps://www.blogger.com/profile/04226876002855072090noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-53495926713921769492009-11-19T22:56:11.392-08:002009-11-19T22:56:11.392-08:00At least its just gold and not our real American p...At least its just gold and not our real American paper money...ahh crap! We should make a bunch of bootleg indian dollar coins out of lead and send them to china. Thats their M.O.<br />:)Joehttp://sandiegomortgagefinder.comnoreply@blogger.com