The Golden Rule

Lately there have been calls for the US to sell some or all of their gold in order to help reduce the debt and budget deficits.

In 2010 the US went into debt a further $3.5 billion each day.

With the US supposedly holding 147 million ounces of gold at today's rough price of $1,500 an ounce that only comes to $222.5 billion.

That's enough to cover the debt, not the budget, just the debt, for only 64 days. That's just over two months.

Why do I say the US supposedly holds 147 million ounces of gold?

GATA has amassed an extensive body of evidence pointing to the very real possibility that the US has in some was encumbered through leasing or swaps a large portion, perhaps as much as half, of the gold they state they have on their books.

As is my custom, I am just pointing this out to you so you can do your own research and come to your own conclusions. I do recommend doing some research in this field.

As the old joke goes. The president asked to visit the gold vault at Fort Knox. He was shown in and he discovered the vaults to be empty. He immediately turned to his escort and said "double the guard!"

From my standpoint a nations gold is basically akin to a royal families crown jewels. They simply aren't sold, ever!

It doesn't take a genius to read a bit of history and come to the conclusion of the fact that every country who has emerged through crisis to become the worlds next superpower has basically had the most gold.

From this comes the Golden Rule.

"He who has the Gold makes the rules"

I talk nearly weekly about the central banks of the world accumulating and hoarding, not dishoarding, the shiny yellow stuff. Central bankers including those residing in the US know this fact.

No matter how much they try and change the perception of gold and distort history, they simply can't. They may prolong the collapse and transition into the next era of superpower history, but it's inevitable.

Whom has the most gold WILL become the next superpower.

Ron Paul has said he'd like to see the US sell some of their gold. He's getting flack from every which way over these seemingly out of character comments. But let's think about it for a second.

Once I heard the news, my mind raced through a tangled web of thoughts and I came quickly to the conclusion that he has ulterior motives, as any good politician does!

Ron Paul has been calling for an audit of US gold for some time now, with no success. Now tell me this.

What must you do before selling something?

Basically have it appraised or audited.

You have to know for certain how much of it is there, then decide on the sale quantity.

Maybe I'm off in left field, as is known to happen, but I think it's pretty simple that Ron Paul just wants the US gold to be audited. Then he'll change his tune and not support selling any of it.

Ron Paul has called for a quasi gold standard for a while now so do you really think he would consider selling the gold he wants to back the currency of his country in some way shape or form? I don't.

It will be interesting to see how this new angle on getting the US gold reserves audited plays out, but I bet next year I'll pen another article on US gold being audited sometime in the future.

Personally, and I'm not trying to influence your views, you must come to your own conclusions, I think the US gold is at least partially gone. That is the only reason they won't allow an audit.

Why else would they be so secretive? If they had that much gold wouldn't they want to flaunt it and help restore confidence to the American people?

In my view there would be nothing more reassuring than to see the US president giving a speech from the gold filled vaults in Fort Knox educating the American public of the historic facts that the country who has the most gold is the dominant one.

Why government officials continue to spew garbage at us is beyond me, when simple truth about history and honesty about money would strengthen the country immeasurably and motivate and empower every single citizen to work hard and be innovative with the sound knowledge that the US will be ok in turn emerging the US from the dark hole they are in.

What do you think?