The buck stops where?

Read this last week. Specifically, I was struck by this gem:

The Treasury Department has 261.5 million ounces of gold in its reserves, representing about a third of the gold stockpiles held by governments around the world. With gold selling at about $1,100 an ounce, that means Uncle Sam is sitting on $288 billion worth of the shiny stuff.

So, we’ve got gold worth $288 billion. Three hundred billion? The national debt is somewhere around 12 TRILLION dollars right now. Each day, we add about 4 billion. Okay, so that’s a hokey website, but the numbers are kind of astounding, don’t you think? Nixon abolished the gold standard for good in 1971. So, in less than forty years, we have had the value of the dollar shrink against gold by two whole orders of magnitude? I’m no economist, so I assume there’s inflation and all kinds of other things that play into the math, but we went from 288 billion dollars of gold and 288 billion dollars of paper to 12 trillion dollars of money that we OWE to others, let alone the 800 billion in circulation right now. So…we’ve got 2.5 times as much money as we do gold, and well over ten times that owed to other countries. In FORTY YEARS.

Do you think the government would let me run my business that way? Or my private life? I’ve got no answers, but I can spot the problem…


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