DJ, Wolverine, Pimpy and more.....Tuesday 5-24-2022
DJ: DID YOU KNOW?
Not so long ago an associate had asked me about the probability of a “gold backed” currency. First off, for that to occur, there would have to be legislation passed through the house and senate to make it a law.
There have been two bills submitted to the house , H.R.5404 during the 115th Congress and H.R. 2558 during the 116th Congress. There are no such bills or actions in the current 117th Congress. The verbiage in both previous bills would require the Dept. of the Treasury (DOT) to ,”define the dollar in terms of a fixed weight of gold, based on the day’s closing market price of gold”. Even if the bills had passed (which they haven’t) the actual verbiage, in the introduction, states the bill would not go into effect for three and a half years from the day it became law, to give the public time to acclimate.
Currently the gold held by the D.O.T is approx 261 million troy ounces. The value, (or booked value) is around 11 billion U.S. dollars because its value is based off of what is called “Statutory Value”. The Statutory Value is $42.222 dollars per/ounce (since 1973).
While on their balance sheets the Fed holds the “title” on the gold the U.S.T. holds the physical gold. The Fed (central banks) holds “Gold Certificates” . The Fed’s gold certificates are way old. They do not provide the Fed with a claim on a “fixed weight of gold” held by the treasury but rather they provide the Fed with a claim on $11 billion dollars worth of gold. Thus the verbiage in both bills submitted to the congresses.
The U.S.T. has not added to its gold reserves in decades. Between all gold sources in the world, current estimates suggest that roughly 2,500 to 3,000 tons of new gold is mined each year. At present, experts believe that the total amount of above ground gold in the world stands at just over 190,000 toms. But that reflects gold hallmarked into the monetary system. Dore is gold that has had the other minerals smelted out of it but is not considered bullion. Bullion is 99.9% gold and hallmarked into the monetary system. Dore can be as much as 99.9% but is not hallmarked into the system yet and is considered less pure until it is.
Now we shift to the “Gold Wrapped Accounts” . There are (so we are told) 27 gold wrapped accounts. These are financial instrument accounts wrapped or hedged against old gold hoards, i.e Historical bonds and certain currencies. The gold these instruments are tied to are Dore and not infused into the monetary system. By redeeming these instruments the purchaser gains title of the gold. It would take a small fraction of the gold wrapped accounts to facilitate global gold backed currencies.
So, that being said, what has to happen? First the gold hoards must be located ( as defined in the verbiage of Historical assets), title must be gained ( Redeeming of Bonds and or currencies) , the gold must be retrieved ( this has been going on for years) re-smelted and hallmarked into the monetary system.
The U.S. has only to change the statutory value of the U.S.T. holdings of $42.22 to market value, (through legislation) pay off the Fed’s certificate liability and take title of the remaining 98% of physical gold. The market value would increase that gold from the $11 billion liability to close to $1 Trillion . Coupled with the fraction reserve banking system those holdings’ values could theoretically be increased over 90 times to close to $100 trillion.
Point of fact Both bills H.R. 5404 and H.R 2558, same bill two different congresses, never made it pass the introduction- summary stage of the bill process. They were never voted on or even made it to the calendar for a vote. There is only one sponsor on the bills and no cosponsors. Both times it was Senator Mooney of W. Virginia who introduced the bill. And there is no such bill in the current 117th congress.
Mark Twain said it best “ How empty is theory in the presence of fact! “
DJ
https://www.rumormillnews.com/cgi-bin/forum.cgi?read=199984
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Wolverine :
I’m praying that today is a very special day for us. Please lift your vibration high and pray to the Lord almighty to release this blessing that is bestowed upon us.
Don’t pray for money but pray that this blessing is not just for you but to help humanity and liberate them from their bondage as well. We have been called by God to do good in this planet and don’t ever forget your mission.
I’ll be on a call later on the day. God bless you all Wolverine
Vietnam Dong update for 05/23/22 - great recovery from Rona
Pimpy’s Investment Chat:
Gold Not Part of Wall Street’s Playbook and That’s a Good Thing, Says SWP's Mark Yaxley
Stansberry Research: May 23, 2022
"Gold is not part of the Wall Street playbook," and that's a good thing right now, asserts Mark Yaxley, Managing Director at Strategic Wealth Preservation.
Gold acting as a hedge against all other investments and existing out on its own, "is a good thing for investors right now," he tells our Daniela Cambone.
"Be patient and let [gold and silver] do their job, they will come through in the end," Yaxley advises precious metal investors.
"We are in a very severe market correction, and gold and silver tend to explode toward the upside of a market correction," so look to expect a similar situation soon, he continues.
Yaxley concludes that the biggest risk associated with storing your precious metals, "is government overreach, from a political risk standpoint."