The United States claims to have approximately 8100 tonnes of gold bullion in reserves, most of it under lock and key at Ft. Knox. It is estimated there is another 6000 tonnes of gold, give or take, on deposit from foreign and private interests within the US as well. If you add that all up you get around 14,000 tonnes of gold bullion.
That’s a lot of gold. And all of it within the cozy borders of the United States. The second-largest holder of the yellow metal is Germany with 3401 tonnes, which means the United States is really a gold superpower.
For the sake of argument let’s just assume the government is telling us the truth (!) about our gold reserves. We can then hypothesize a highly probable endgame for the dollar, an endgame that which would be very dramatic and interesting, indeed.
But first, understand this: As far as the rest of the financial world is concerned, the real debate about the probability of a dollar collapse is over. If you observe their actions, and ignore their honeyed words of political spin, you can very easily and clearly see how the major players of the world are aggressively and continuously positioning themselves into hard assets such as gold. They are limiting their exposure to the dollar just about as fast as they possibly can.
Because it is a mathematical and political certainty the dollar will finish it’s long march into the abyss of history and collapse within the foreseeable future, many believing 2015 – 2017 will be the watershed timeframe for this eventuality. And while most people are ignorant of the true picture of the world financial system, the elites atop the world pyramid are keenly aware of the truth and are acting on this knowledge.
Remember, if the US truly has 8100 tons of gold on reserve than we are the richest nation on earth, a financial superpower dwarfing the bullion holdings of any other nation. Even the great rising dragon of China has only a little over 1000 tonnes in reserves.
So let’s consider a possible scenario whereby the United States government re-establishes itself overnight, in an act of supreme gamesmanship, as the unquestioned economic/political ruler of the world.
The United States could:
• seize all gold within its borders, including foreign bullion deposits
• recall all current fiat US money
• establish a new gold-backed US Dollar/Currency
• Valuate gold at $20,000 – $50,000 an ounce
In this kind of game-changing strategy, the US would end up holding north of 14,000 tonnes of bullion gold with no other country even remotely close in holdings. This play would create truly amazing outcomes of mega-historical proportions and remake the world virtually overnight, especially for the US and its citizens.
Unfortunately, such a sweet plan is probably not possible.
Because it is not very likely that there is a syllable’s worth of truth to the US government’s claim of having 8100 tons of bullion gold in our reserves.