The United States under Biden is spending money like there is no yesterday … combined with previously fiscally irresponsible presidents until our rational debt is over $33 trillion … about 122% of our GNP.
Economists suggest that countries so indebted are in a death spiral … particularly when interest payments on this debt become untenable … which we soon will experience ourselves.
So what do we do? Clearly our uniparty is not ready to tighten our belt … and trying to inflate our way out of this fiscal dilemma makes our interest payments grow even faster.
Pilgrim, I may have a solution — return to a modified gold standard. By this I mean forced replacement of all Federal Reserve Notes … real and represented by indebtedness … with Treasury Notes … dollar for dollar.
This resurrected currency is backed by all our government-owned gold in Fort Knox, the NYC Federal Reserve Bank building and elsewhere at an exchange rate of $X an ounce of gold.
And the $X is what ever number is needed to value our total gold stock at $33 trillion. I don’t care if it is $32,000 per ounce … about 16 times its current gold price on Monex.
This simple escape hatch from the possibility of our going bankrupt will clearly piss a lot of people off … but at least we are not reneging on our debts. Yet our indebted interest costs will go to zero.
And very few Treasury Note holders will redeem this currency for our gold hoard.
STAND UP FOR ESCAPE HATCH!
No comments:
Post a Comment