Skip to content

Additional resources for earning interest in gold

FAQ

Why earn interest on gold and silver? If you’re short on time or simply prefer to watch instead
Read more

3 responses to “Open Letter to Congressman Alex Mooney: H.R. 5404, A Bill to Define the Dollar as a Fixed Weight of Gold”

  1. I read recently that the BOJ now owns 41% of JGB’s and is siphoning up around 3/4 of the new issuance too. I take this to mean that hardly any foreigners wish to buy longer-term JGB’s at current prices. Is there a precedent for passing through this phase in route to foreigners no longer accepting your national currency (the Yen, in this case)?

    My intuition tells me that the West is looking at Japan as a crucible for the next phase of fiat monetary experimentation. But I don’t know if its actually illustrative, given their traditional trade surplus and high domestic saving rates.

    I say all this only because I think the debate you’d like to spark with your letter just won’t get any attention until something significant happens to one of the major Central Banks, probably the BOJ. Maybe the SNB. The World sees no minefields because none of the Central Banks seemed to have stepped on a mine. The SNB currency peg debacle seems to have had no effect on the average Swiss citizen.

  2. Despite Treasury Secretary Mnuchin’s dog-and-pony show at the federal depository at Fort Knox, there is quite a lot of ambiguity as to just exactly how much gold is still held in US depositories. Assuming that it is all there, and assuming that we were to count up all of the debt (dollars) supposedly represented by that gold, returning to a gold standard would sill be impossible save for one event that this country is not prepared to do.

    To wit: To make the dollar convertible to gold would require, among other things, that the US government NEVER AGAIN spend more money than they take in. And that simply is impossible for this government to do. Once one wraps their brain around that fact, one realizes that the US is doomed. We are headed to yet another default on the US currency.

    This is bad enough, but when the reality is that we are not yet even having the discussion about what needs to be done once it happens bodes especially poorly for all of us. The fact that Representative Mooney doesn’t understand the inherent problems with “tying the dollar to gold” means we have much to learn before we can find our way out of the “debt as currency” woods.

  3. I agree with the letter 100%.
    Eurodollars,created by ledger entries ,by foreign entities,uncontrolled by Federal Reserve,would rush back to USA and demand gold.This created “funny money” would drain away our gold quickly.
    I also believe such pegging schemes may draw in a type of international speculator with grandiose designs on the world financial system who would use this method to clean out a targeted country’s foreign exchange reserves.
    It speaks well of Mr Weiner that although being a gold proponent , he recognizes the dangers of ANY kind of pegging or price fixing.

Leave a Reply

Want to join the discussion?

Feel free to contribute!

This site uses Akismet to reduce spam. Learn how your comment data is processed.