the us $ - al qaeda's target of choice? - sinclair, page-19

  1. 2,070 Posts.
    re: to fall guy - again--- gold cover clause - sin DUB, glad you at least understand. I find the whole issue full of hype, complexity and vested interests.

    Well, if the limited amount of gold has to "cover" 15% of the US issued notes, then gold would indeed rise majestically. The annual production of gold is about US$25 billion. But I think some form of virtual or derivative standard or reference to gold will be dreamed up instead - will have to be dreamed up in fact. All the gold ever mined would fit into a cube with 20m long sides.

    No doubt investment demand for gold from central banks and individuals will cause gold to rise but risk and fear of central banks stabilising gold as a reference base will keep gold in check. In fact surely if gold takes off with a vengeance it will be unsuitable for the reference role.
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