Salutations my fiat fautors!
Over on a site called Screwtape Files (a site known for it’s scrutinisation of gold market nutters, but they still smell like closet gold lovers to me!) one of their metal loving members has come up with the following theory to explain the new US notes:
1. Shut down the government (in name) once it became evident a failed bond auction was on the horizon, due to debt ceiling (or whatever).
2. Use political gridlock as the reason for things falling apart, socialize the idea of default through media, in all countries (evidence of this in Australian media - now you know why they need the Pentagon employees back at their desks).
3. At any crescendo, announce the USG has plenty of gold, and much more than the 8,000 tonnes (where do you think the GLD gold has been going? ;p), they will value it at market price to address any concerns on their debt.
4. Resume as normal, only this time Triffen's dilemma is solved. If gold is revalued higher then this time it only boosts the US economic position. Everyone has a nice new currency with golden references to remind them how cool the government is.
You’ll note (pun intended) that the theory they've proposed includes a suggestion that gold will be revalued higher... the problem is they have this whole system backwards.
It is fiat currency, the US dollar, which holds value, being backed by the full faith and credit of the US government. No metal holds this title. It is only through the creation of paper US dollars to pay down the debt that they will be able to alleviate the concerns over debt repayment. How anyone thinks gold could help is beyond me!
I have reached out to some fiat insiders who reside in Washington DC. It is their opinion that the new design of the $100 bill may in fact be tied to gold, but not in the way most conspiracists believe.
The new US currency will not be notes backed by gold, but gold backed by notes. The US is secretly increasing their official gold holdings so that they can reintroduce gold back into circulation. The fiat backing will ensure that the gold coins in circulation retain their value with each coin being backed with freshly printed $100 notes (the valuable notes stored in vaults for safe keeping). It will not be so different to the recent introduction of physical bitcoins, where the circulating metal represents the value of the fiat currency it's backed by.
It’s quite possible that the US has secretly been buying more gold (redeeming it from the GLD ETF), which would explain the recent collapse in price as they hyperinflate the US supply of the useless metal in preparation for its return to circulation! The price will strengthen once it's announced the circulating gold will be backed by US dollars.
- Paper Money Shield
