Re: Questions to Blayne and Larry (4)

2008-2-26 20:58:00

Blayne wrote:

"Our government only has about $132 billion dollars worth of gold in Fort Knox yet there is over 13 trillion dollars in circulation. If we used the gold in Fort Knox to back our money then each ounce would have to be valued at over $88,000 dollars. Maybe this explains why Greenspan didn't say a peep about switching to the gold standard when he became Federal Reserve Chairman.

"You're thinking in terms of inflated dollars. We don't need enough gold to equal the current amount of dollars in circulation. Once prices are adjusted to the actual value then many less paper dollars would be needed to buy the same goods and services. Also removing the monopoly would allow competing currencies. Your still thinking government central planning. Private companies could compete and the market will decide how many dollars are in circulation and what currencies are of the best purchasing power. Also there will be gold and silver coins circulating."

JJ:

The value of the gold in Fort Knox is based on it's value using present inflated dollars which is a little around $930 an ounce. That's the market value today. To say gold is worth mnore than $930 and ounce is just not correct in today's market.