Wednesday, May 15, 2013

The real price of gold (or should we say the US dollar?)

There's a true gem of an observation buried in this essay:

http://www.paulcraigroberts.org/2013/05/13/gangster-state-america-paul-craig-roberts/

"Kranzler reports that the current June futures contracts are 12.5 times the amount of deliverable gold."

That implies that the real price of gold should be $1394.50 per ounce x 12.5 = $17,431.25 per ounce.

Alternatively, it implies that the real value of the dollar is about 8 cents.

Do you still want to believe that America's economy will recover? What a sick fairy tale!

America will become "competitive" again when we fall to less than 10 percent of our current buying power. Think on that for a while. Benghazi, the IRS, and the AP spying are distractions to keep the mental pipsqueaks busy while the real damage occurs behind the curtain.

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