Originally Posted by Longbob
The bet you had with Bob could have easily gone either way over such a short time period. It wasn't a blow out by any stretch.

Also, gold isn't the only asset a country possesses. It is a common medium, but bonds can easily be asset backed. As far as what I am using for my gold reserves and/or money supply, it was outlined in my post "for argument sakes." No one has complete knowledge of who owns what.

The accuracy of my numbers is not the sticking point. It is the arbitrage that is the elephant in the room for reconverting back to the gold standard.


A $200-220 (depending upon what metric for the gold price that you use) difference in a 9 month period on a $1500 bet. Maybe not a blowout, but pretty substantial.

My point about the whole thing is that the entire system will be in collapse when they are essentially forced to pull a "Rentenmark" out of their a$$. They-meaning the world's banking system-might be able to issue "asset" backed bonds, but they'd better be able to do so with something that has the ability to be actually possessed or converted into real goods, or confidence won't be restored. No confidence, no con.

After this debacle, there may be no confidence in anything not physical. It wouldn't surprise me in the least. After the wholesale abrogation of bond holder's rights by both the US government and the ECB and EC over the last 4 years, why would anyone believe that any paper issued by anyone would be honored? It certainly isn't being done today. As examples I give you the GM bankruptcy, and the recent unprecedented ECB removal of all CAC's in the Greek bonds that they hold, as opposed to the Greek bonds held by everyone else who still retains them.


If the American People allow private banks to control the issuance of their currency, first by inflation, then by deflation, the banks..., will deprive the People of all their Property,...Thomas Jefferson