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A little bit of simple logic here.  In what world could the issuer of the reserve currency borrow more than double the amount of gold reserves they purport (we know they are lying) to have?  In what world could this same “issuer” issue double the amount currency of gold reserves they purport (we know they are lying) to enable their treasury to borrow this amount?  In what world could this happen year after year after year?  Maybe in a world where gold has no value or is not money?  In this world?  Not a chance!

Let me do the math for you so you can see this as simply as possible.  We “purport” to have just over 8.000 tons of gold.  For round numbers this is valued between $400 billion and $500 billion.  The Fed has in place (probably clandestinely much more) a plan to purchase $85 billion per month of Treasury bonds that the Treasury must issue but nobody else wants to buy.  $85 billion multiplied by 12 equals one trillion two hundred 60 billion dollars.  Numerically it is $1,260,000,000,000.  The gold “reserves” (probably close to mere fumes by now) represented the wealth accumulated by the greatest industrial nation on Earth.  It took roughly 170 years to accumulate some 20,000 tons after WWII which was “officially” sold down to just over 8,000 tons by 1971.

Fast forward to present day and what are we doing?  We are spending ALL of our gold every 6 months!  And this assumes that we have the gold!  Never mind that no audit has been done since 1956, never mind that export figures confirm that more gold is being exported each month than our mines actually produce.  No, forget all of the anecdotal evidence that points to an empty vault, let’s take their lying words as gospel.  We are now living so far beyond our means that each year we are consuming DOUBLE the amount of savings that took nearly 200 years to accumulate!

I guess you could look at it as our forefathers were a bunch of slackards that didn’t save enough for us to spend but the reality is… we have become a bunch of spoiled 4th or 5th generation rich kids who have spent our inheritance.  We have spent it at least 50 times over!  Don’t take my word for it, just listen to Ben Bernanke.  He testified today that the $16 trillion figure that is bandied about IS NOT our total indebtedness.  It is much higher.  How much higher?  Does it really matter?  We have already “spent” our gold nearly 50 times over if you use current debt and purported gold holdings.  The real number is probably 500 times over if you use actual debt.  The number is an “infinite” amount of times over if the gold is gone (it is).

I seem to remember a piece that I wrote a while back entitled “How broke is broke?”  Do you see with the above calculations of “how broke” we are?  We are “beyond broke.”  We are not just some ordinary, everyday, run of the mill bankrupt.  No, we are really really really BROKE!  And to answer my question of “In what world?”, that’s simple, even obvious.  We live in a world that is about to change… BIG TIME!  The change is imminent and a mathematical certainty.  What you do to prepare for this “new world” will directly affect how much YOUR personal world will change.  Common sense is what we need, NOT “hope.”  Many read my writings and hope that I’m wrong. “Hoping” won’t “change” the outcome.   As an afterthought now I have a better understanding where all this “hope and change” stuff we heard about came from!