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"Gold Could Go To Infinity" - Ron Paul

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“I Still Believe In Gold” - Ron Paul

Dr Ron Paul, the popular Presidential candidate and America and the world's most popular libertarian voice, told CNBC yesterday that he “still believes in gold” and that “gold could go to infinity.”


Former U.S. Representative Dr Ron Paul told CNBC's Jackie DeAngelis and the Futures Now Traders that the long-term case for gold remains firmly intact.

Dr Ron Paul:

“Timing is the only thing. I remember watching gold when it was 35 dollars an ounce and we thought if it ever hit a hundred dollars, the world would come to an end. And then a thousand dollars, so; no, it's good as long as we continues to do this <print money> , you know, it could go to infinity because when people just leave the dollar, who knows what …”

“But that won't happen if we finally wake up and do something.  But if we can keep this together, if the money managers can keep it together and it doesn't collapse, yes, gold is gonna keep creeping up, but, you know, as weak as gold looks right now, it's up a hundred dollars for this year so…”


Jackie DeAngelis:


“It's roughly I think up 8% year-to-date. It's not a horrible move for gold but I think a lot of people were expecting to see a little bit more, especially with the instability that we're seeing in terms of the geopolitical situation. A lot of conflict around the world -- you'd expect gold to be higher right now.”


Ron Paul:

“Yeah, but if you understand the subjective theory of value, you don't get too concerned about that because, yes, increasing the money supply weakens the dollar and a weaker dollar raises the price of gold and it's a long term measurement. But you can't measure, you can't say that the money supply went up a certain amount, and gold is going to go up, so there's a subjective element in that.”

“But long term...and economic law says, if you keep printing a lot of paper money, the value of that dollar and currency will go down, and things and most prices will go up and indeed gold always goes up against that currency.”

But you don't, I don't get in the business of saying in a year or two or three it's going to be two or three or four thousand dollars because it really challenges the basic fundamental beliefs of the Austrian school, to make these kinds of predictions.”


The interview about gold can be watched here




In another interview with CNBC, Dr Paul reaffirmed his view that the nation's monetary and fiscal policies would result in massive inflation. He warned of a stock market crash and of the risk that currency debasement will lead to the continuing devaluation of the dollar.

Ron Paul has long said America should "end the Fed," and he made that case once again on Tuesday.
 

** Record Low Gold Bar (1 oz) Premiums **

"One thing you have to do is get rid of the Fed, because of the Fed “spin” that leads to volatility in markets. Referring to the statements and spin by Federal Reserve governors, now Janet Yellen, he said that in fact  it is a “very inefficient way to operate a market, to have one individual make one statement, and put so much weight on it.”

“In short term, it's very, very real, because people are going to make it or break it, you know, on this interpretation. But that has nothing to do with the free market, nothing to do with building capitalism, and savings, and the things necessary to have a growing economy."

See important guide to Currency Wars here Currency Wars: Bye, Bye Petrodollar - Buy, Buy Gold 

 

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Thu, 07/31/2014 - 19:40 | 5030109 world_debt_slave
world_debt_slave's picture

yep, NORFED, Liberty Dollars, from 1998 cool with the FED until 2007 when they started minting Ron Paul for president, warehouse in Idaho raided by the FED and all precious metals stolen, including my silver, never returned.

Thu, 07/31/2014 - 18:57 | 5029916 Jack4952
Jack4952's picture

The problem is that gold prices are RIGGED, primarily by institutions dumping huge quantities of "naked" shorts of "paper gold" onto the markets when trading volumes are very low.

WHY would ANY sane investor dump $1.8 billion of "paper gold futures" onto the market within a matter of seconds, as happened just a few weeks ago, which is guaranteed to drive down gold's price?. And WHO has the financial resiurces to do so?

1.) The ONLY purpose for such an action is to drive down the price of "paper gold", which in turn affects the price of physical gold. And only a MAJOR CENTRAL BANK (aka, the Federal Reserve), working througn one of the many its owner banks and investments companies,  has the financial resources to make such huge dumps.

See:

http://JohnHenryHill.Wordpress.com  The Federal Reserve: Who Really Owns It?” by John-Henry Hill, M.D.

OR

 

Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report, Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976.

Source: http://www.lawfulpath.com/ref/federal_reserve.shtml

2.) WHY are the central banks of Russia and China buying up such huge quantities of physical gold?

 

The IMF just reported that the Russian central bank officially increased its physical gold holdings by 16.8 tonnes in June 2014 to an official total of 1,094.8 tonnes.  And one can only guess at the REAL amounts acquired by China each month.

Source: http://www.zerohedge.com/news/2014-07-29/currency-wars-intensify-russia-buys-186-tonnes-gold-june#comment-form

 

In short, the owners of the Federal Reserve are trying to suppress the price of physical gold (successfully, so far) in order to keep the U.S. dollar alive. But other nations such as Russia and China are buying up physical gold in huge quantities, while slowly dumping their assets in U.S. dollars, such as U.S. Treasury bonds.


 

 

Thu, 07/31/2014 - 19:01 | 5029943 Publicus
Publicus's picture

So can Ebola.

Thu, 07/31/2014 - 16:20 | 5029156 crazybob369
crazybob369's picture

Ron Paul is correct as usual, but so what? Of course gold measured in US$ will go to infinity, because eventually the $ will go to 0. Anything divided by 0 is by definition infinite. Doubt that the dollar will go to 0. Consider this; in all of recorded history, no fiat currency has ever survived. None, zippo, nada. So, why would anyone think the mighty dollar is any different, especially at the rate that the Fed is printing them.

Thu, 07/31/2014 - 18:51 | 5029897 michaelbrownira
michaelbrownira's picture

dolalr wont go to 0, but close to it... lol
Michael Brown

Thu, 07/31/2014 - 15:32 | 5028776 JRobby
JRobby's picture

Gold will catch up to derivatives?

Thu, 07/31/2014 - 14:59 | 5028542 orangegeek
orangegeek's picture

can`t stand the Fed, but it`s not going away

 

USD is fiat bull, but it`s not going away

 

gold is a commodity that does not back the USD like it used to and likely never will back the USD

Thu, 07/31/2014 - 18:31 | 5029809 Pareto
Pareto's picture

.......Because it will be backing somebody else's currency.

Thu, 07/31/2014 - 13:27 | 5027991 eishund
eishund's picture

Time to bring out the dusty Bible. http://www.spurgeongems.org/vols34-36/chs2088.pdf

Thu, 07/31/2014 - 13:18 | 5027958 Clesthenes
Clesthenes's picture

Come on guys, quit being such pikers.

Instead of waiting for criminal and useful-idiot classes to give you a profit on your gold, why not take part in an effort to recover the 9-10 trillions stolen from DoD, HUD and SSA, for starters?

If you’re depending on criminal and useful-idiot classes for your profits, you’ve got a bad case of wishful thinking.

First, they are absolutely certain their genocides and plunder of the earth were done properly; and they didn’t do them so they could share their booty with you; much less will they punish themselves for what they have done.

Second, if you do gain a profit, they will simply take it from you.  They’ve been doing so for centuries, probably millennia.

I’m sorry guys; if you want your profit, or to hold them accountable, you’ll have to duplicate what American Founders did, minus their mistakes (an introduction).

If you think you can survive the coming storm as a lone individual, you have a very bleak future waiting for you.

Who will be the first to fall under the ax?  That’s easy.  They are known today as “preppers”: people who “prepare” for a crisis: they move to the woods, buy a cabin, stock large amounts of food, guns, and gold, or any combination thereof.  At least unsanitized history tells us they are the first to fall.

During the French Revolution, monopolists and bankers withheld food supplies from markets; the resulting turmoil caused peasants (farmers) and shopkeepers to withhold food and reasonably alert Frenchmen to hoard the same.  French terrorists, Robespierre, Danton et cetera, blamed peasants, shopkeepers and hoarders for the shortages and long lines; their supplies were seized, they were then paraded thru the Revolutionary Tribunal on their way to the guillotine.

The same happened during the Russian Revolution, with improvements in terminology: “speculators”, hooligans, Kulaks, “complainers”, “obstructionists”, “anti-socialists”… among others.  Their supplies were seized and they were paraded thru a Revolutionary Tribunal before receiving a shot in the nape of the neck.

All three slaughters – French, Russian and American – were, and will be, orchestrated by Judeo-Bolsheviks (see, Building an American Schutzstaffel).  There is no reason they should do differently in America what they did in the other two.  If you have any doubts regarding their ages-long policy of mass genocide and general plunder, read, Exodus #23, parts one and two.

Thu, 07/31/2014 - 21:30 | 5030713 Jack4952
Jack4952's picture

Clesthenes:

 

Precisely HOW do you propose that the people "recover the 9-10 trillions stolen from DoD, HUD and SSA, etc." ????

By armed revolution? Bush and Obama have turned DHS into a "civilian military", with the NSA, CIA, FBI, DEA and so many other agencies now militarized. Even the FDA and EPA have become militarized under Obama. And whose side will the U.S. military be on? Or state, county and local police, all of whom look more like combat-ready troops than regular police of just 15 years ago. The British in 1775 were on the other side of the Atlantic Ocean, with "lengthy supply lines" in terms of distance, travel time and tonnage capacity; plus antiquated weaponry compared to today. Any revolution in America today would last a matters of weeks at most.

By "civil disobedience" ?  Just recall the "Occupy Wall Street" protests across the antion afew years ago. The police in every major city brutalized those protesters, with massive arrests. And the FBI even had concrete plans to use SNIPERS to kill of the perceived protest leaders.

By a "generalized strike" by all workers? Hardly likely in an economy where so many unemployed people are desperate for work and those with jobs pray each day that they will not be the next ones to be layed off. Plus, something like 60% of Americans have savings of less than three weeks of expenses.

The "powers that be" (PTB) control both the GUNS and the BUTTER.They will NOT give up control easily - they never have!!!

The problem lies in the FEDERAL RESERVE and its owners - the "super rich families" with their control of all major banks and corporations throughout the Western world. The ability to create and control money and credit is the KEY to controlling all else.

"The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.” 

       Sir Josiah Stamp, Director of the Bank of England (appointed 1928). Reputed to be the 2nd wealthiest man in England at that time.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

As for who REALLY owns the Federal Reserve (and most of the world's major corporations), see:

http://JohnHenryHill.Wordpress.com  The Federal Reserve: Who Really Owns It?” by John-Henry Hill, M.D.

OR

http://www.lawfulpath.com/ref/federal_reserve.shtml


 


Thu, 07/31/2014 - 16:49 | 5029322 JRev
JRev's picture

Not that I don't disagree with the thesis of your post, but Judeo-Bolsheviks? Come on now. The modern Isrealitic movement is indivorcible from the Anglo-American Establishment, as is the rise of Bolshevism. Alois Schicklgruber (read: Adolf Hitler) was himself a Rothschild. See "The Mind of Adolf Hitler" by Walter and William Langer, both Anglo-American intelligence operatives. Arthur Balfour, author of the Balfour Declaration penned to Lord Rothschild urging the creation of an Israelite state, was himself a British agent and member of the Society for Psychical Research, the same Anglo-American parapsychological nonsense forced on Germany decades prior to the rise of Nazism. Bolshevism was a grand experiment by the Rhodes Roundtable; funded, fostered, and fomented by British and American industrialists and eugenicists. The writings of Sutton, Quigley, and Trotsky have made that much abundantly clear.

This is the cornerstone of the Strategy of Tension, which is the crux of Social Darwinism (eugenics): Fund all sides, let a few of the winners survive. The "struggle" between modern Zionism and Islamic Fascism (the same Islamic Fascists that supported the Nazis) is the Strategy of Tension at work.

Interesting that you bring up the creation of an American SS, because the Schutzstaffel had as a prerequisite a belief in Theosophy and a study of the parapsychological; indeed, the same beliefs of the Anglo-American Establishment members who created the modern Zionist movement in the first place. The Project PAPERCLIP Nazis infesting the CIA, through MKULTRA and headed by folks like Aldous Huxley, actively tried to create a "new" SS in this parapsychological/cybernetic vein with the infamous INSCOM "remote viewing" program of the 80s:

http://onestepbeyond.me/inscom-remote-viewing-documents-theyre-important/

More on The Strategy of Tension: http://peacerevolution.podomatic.com/entry/2014-05-11T08_17_37-07_00

Thu, 07/31/2014 - 17:14 | 5029476 alski
alski's picture

Well, you are not far from truth on Trotsky. Some historians think that Stalin figured out what sort of person Trotsky (Bronstein) was and who was behind him, and finally got rid of him and his sidekicks.

Thu, 07/31/2014 - 12:05 | 5027604 the grateful un...
the grateful unemployed's picture

gold will most valuable when it has no correlation to the dollar

Thu, 07/31/2014 - 09:48 | 5026959 SubjectivObject
SubjectivObject's picture

Gold to infinity!

Cool.

When?

Thu, 07/31/2014 - 09:07 | 5026786 Orwell was right
Orwell was right's picture

I think Indigoboy is corret.   His math looks right....and that approach solves a lot of startup problems for the BRIC

Thu, 07/31/2014 - 08:59 | 5026768 Fix-ItSilly
Fix-ItSilly's picture

Depositor and other "outsider" bank bail-ins reduce the supply of fiat.  As do new money-market rules such as the break of the "buck".

The status quo recognizes Congressman Paul's gold argument and is heading it off.

Thu, 07/31/2014 - 08:38 | 5026689 Felix da Kat
Felix da Kat's picture

Gold will re-test support at $920... and then fail. I suspect the Y2K lows of $255 will be re-tested within five years ...  "But deflation like that can never happen; not in a million years"... and neither will home prices ever be cut in half. (hint: the more red arrows this gets, the steeper the decline)

Thu, 07/31/2014 - 20:47 | 5030275 Jack4952
Jack4952's picture

FELIX:

Physical gold will NEVER drop to $920 USD for the simple reason that the USD will NOT be around very much longer - at least NOT in its current form.

If you have followed Jim Rickards (who had conducted "financial war games" for the Pentagon and other nations), the plans are already in place for the "managed and orderly" replacement of the current U.S. dollar with a NEW currency, supposedly to be done at a pace that will not result in social and political turmoil.

Other economists (such as Steve Keen in Australia) have urged a "special debt forgiveness" program for individuals for private debt only - NOT for companies - PRIOR to the issuance of any new currency. A simplified version of Steve Keen's plan would be for every adult - with NO exceptions - in the U.S. to be issued to his own special bank account (let's say, $1 million in credit) by the U.S. Treasury. Only individual adults, NO corporations or businesses, would receive this $1 million credit. Those people who have debts would be required to pay off their debts, then they would keep the balance (if any) of that $1 million. Those adults with NO outstanding debt could keep the entire $1 million. Those with debts exceeding $1 million would be required to pay the entire $1 million towards those debts and remain liable for any remaining debt. All debts would be paid electronically based on proven valid claims of right with full paper trails of original loan instruments (contracts). All other personal debts (lacking the original documentation) would be considered null and void.

There would be NO losers. Those who had very low or no debt would benefit the most for their previous frugality. Those who had run up massive debts would benefit the least in terms of cash left over, but they would still come out ahead. Banks and other creditors would be paid off in full, but some would later fail due to massive decreases in cash flow due to lost interest payments on previous debts owed to them.

One result would be MASSIVE INFLATION. With the introduction of such a huge quantity of cash and credit into the system, the current U.S. dollar would become nearly worthless. At that point an "exchange" program of the current U.S. dollar for a NEW currency (as Jim Rickards and the Pentagon have planned) would be put in place. ONLY AFTER all old U.S. dollars were exchanged for the NEW currency would the credits in an adult's special account become available as CASH - the "cash availability date.” Most importantly, ALL contracts (e.g., loans, letters of credit, ETFs, bonds, collateralized debt obligations, etc.) based on these credits or the new currency to individual adults or to corporations created prior to the "cash availability datewould be null and void, and unenforceable. This clause would prevent people with an urgent need for cash from trading their credits at discounted rates for immediate cash.

Submitting false "claims of right" on another person (debt claims without the original signed paper debt instruments) and/or making loans/extending credit prior to the "cash availability date" would require extremely harsh penalties, such as life imprisonment and seizure of all assets for individual offenders; and the seizure of all corporate assets for banks and other institutional lenders, along with the seizure of all private assets of all company officers and board members with life imprisonment. Finally, NO “derivatives” could be purchased by the Federal Reserve banks, any FDIC-insured commercial bank, municipal corporations (states, counties, cities and towns), or by public retirement funds; instead, “derivative” sales would be limited to private individuals and private corporations.

In short, the "rich" would remain rich (just slightly less so, but only in terms of cash on hand); those people with debts would get a new start; and the non-rich who had few or no debts would be rewarded for their frugality.

GOLD would, of course, greatly increase in value compared to the old U.S. dollar - but who knows what its value would be under the NEW currency. In any event, I always viewed gold as INSURANCE in the event of a currency collapse; not as an investment.

If you see a better way out of the current crisis, I would like to hear it.

-- Jack4952

former physician

Fri, 08/01/2014 - 09:45 | 5032259 Felix da Kat
Felix da Kat's picture

Hi Jack, I appreciate your response. I do not think the doom of the dollar as you have outlined, will come to pass, but rather expect the forces of momentum to maintain the dollar's status quo for decades to come. Cash will remain king when deflation begins (and from which, gold will not be exempted). The dollar will rise in value vs. the falling costs of goods and services simply because of its inherent liquidity and quick purchasing power.

As far as a way out of the crisis; unfortunately, short of a colossal natural catastrophe, war is the answer because it is the only thing that can upset the powerful equilibrium that exists. All the chatter to the contrary is but a fly on the back of an elephant.   

Thu, 07/31/2014 - 18:42 | 5029854 Pareto
Pareto's picture

(hint:  the more retarded stuff you say, the more red arrows you get and the dumber you look)

 

You have to preface your "call" on gold up or down with some kind of analytical argument.  to say that $920 gold is revisited invokes some assumtpions about monetary policy, government spending and so on.

 

The second thing, is that gold isn't measured in prices, it is measured in ounces.  And it is measured by what it can fetch in exchange for other "stuff".  Moreover, $920 on the COMEX don't mean jack shit to me since: (1) the paper price can be suppressed by naked shorts and suppressed further by making available more GLD since its not backed by anything, and (2) at no time have I been able to purchase gold anywheres even close to COMEX price (including taking into account premium).  silver hit $17 and change not long ago, it was still $26 where I buy from.  And I think were silver to crash to $5 I would still have to pay $26 to get it in my hands.

 

Finally, in order for PMs to go where you believe they are going, stewardship would have to be exercised over the $USD, interest rates would have to normalize, and government's would have to reign in spending.  None of those three WILL EVER HAPPEN in our lifetime.  Gold hits $2500 before it hits $920.  you heard it hear first.

Fri, 08/01/2014 - 09:07 | 5032108 Felix da Kat
Felix da Kat's picture

That's a pretty good synopsis of Herd Mentality whose hallmark is emotional thinking coupled with a lack of comprehensiveness.

Thu, 07/31/2014 - 13:20 | 5027967 One Ton Lady
One Ton Lady's picture

do you work for kitco?

Thu, 07/31/2014 - 08:09 | 5026604 swass
swass's picture

I love Dr Paul, but he is not a financial forecaster.  The gold bugs have been saying gold would explode with qinfinity and it has dropped.  Point being it is more complex than just printing dollars. 

Thu, 07/31/2014 - 13:22 | 5027972 One Ton Lady
One Ton Lady's picture

ron paul is just controlled opposition  noise.  maybe he is trying to find a conscience ?  who knows.  he knows who has the power , just like his boy.

Thu, 07/31/2014 - 13:16 | 5027948 Jano
Jano's picture

he has been a member of budget and financiac comitee for 35 years.

I trust him much  more, then all the experts and analysts in US together.....

Thu, 07/31/2014 - 09:52 | 5026972 Chief Kessler
Chief Kessler's picture

Gold is getting pounded like a red headed Waffle House waitress in the Motel 6 after payday.

Thu, 07/31/2014 - 13:23 | 5027977 One Ton Lady
One Ton Lady's picture

nothing new really.  metal heads take a pounding on a daily basis.  someone is sure trying to keep metals down.  gee I wonder why.

Thu, 07/31/2014 - 11:29 | 5027414 El Diablo Rojo
El Diablo Rojo's picture

logged on for an up arrow.  It's been so bleak around here, this broke the mood and made me laugh out loud.

Thu, 07/31/2014 - 07:19 | 5026530 p00k1e
p00k1e's picture

"To infinity and beyond...."

Does this mean we will arm wrestle each other for cities….  

I’m buying the ISS with my gold coin.      Keep the change.  

Thu, 07/31/2014 - 05:47 | 5026453 Comte d'herblay
Comte d&#039;herblay's picture

Y'all who think or feel, really, that gold is headed towards Neptune, need a reality check.

Think about it.  If you own a lot of gold and it octotuples, wouldn't that make you very happy on both the financial level, and the vindication of being right all along?

Now.  Look back on your life.  When have you ever been that happy and right?

Never, right?

"The past is never over. It's never really past".

God wouldn't permit your or me to be that delighted.  

Thu, 07/31/2014 - 06:03 | 5026458 kita27
kita27's picture

Gold to infinity, what a load of crap. Gold is inherently worthless. It is good for nothing. At least fiat has worth as paper to burn, or to wipe your ass.

Wealth is the time and energies of a society, not a fucking commodity used for foreign trade.

I still love gold, but be fucked if I'd swap anything of value for it.

Thu, 07/31/2014 - 13:24 | 5027983 One Ton Lady
One Ton Lady's picture

how much is your SSI check every month?

Thu, 07/31/2014 - 10:56 | 5027242 Otto Zitte
Otto Zitte's picture

To get past your cog diss try substituting cocaine for gold. Or sex, bullets, gas, food, water, TP, etc. whatever you consider essential. Then consider that gold lasts longer than anything else you've got to trade. As for gold going to infinity, it has nothing to do with gold and everything to do with the human nature exposed by funny money.

Thu, 07/31/2014 - 07:26 | 5026540 p00k1e
p00k1e's picture

But did Ron make you ‘feel’ happy, just for a minute?  Send him a couple bucks…  C’mon….  You know you want to.

Thu, 07/31/2014 - 13:26 | 5027987 One Ton Lady
One Ton Lady's picture

he made us feel good two times and he quit both times. so now he comes to us, bearing gifts and saying ....Listen to me boys.......I am here to help.

 

He is all hat and no cattle and always was, just like his boy.......the hell with both of them.

Thu, 07/31/2014 - 05:22 | 5026440 rgetty
rgetty's picture

To Infinity and beyond!

Thu, 07/31/2014 - 03:32 | 5026377 indigoboy
indigoboy's picture

I've been pondering something for a couple of weeks, and would appreciate a critique from a second pair of eyes and brain?

 Have the BRICS secretly changed the World?

 A great deal of the angst with the US dollar as reserve currency, is that the US has cheated over the last 4 decades by printing US dollars wilfully, and exported their problems to the rest of the world. The solution is to stop that US dollar hegemony over the world.   And that 'best option' to date, was probably, to get the IMF to create a basket of currencies into a 'Drawing Right', which would then become the new reserve Store of Value/Means of Exchange.  But it hasn't happened, and we can all speculate as to why.

But........

Recently, in early 2014, the BRICS countries have just opened a new joint bank and put $100 billion US dollars in it. Strangely, using US dollars seems counterintuitive to the point of being stupid? And people are scratching their heads to understand why the BRICS would open a new 'joint account', and put their much hated US dollars in it.   But what I find more intriguing, is why ~ $100 billion dollars ?

Please take a walk through these figures below

World Gold reserves as of 2014 suggests that the BRICS hold :

(B)rasil                                  67     (tonnes)

(R)ussia                                1035

(I)ndia                                  557

(C)hina                                 1054

(S)outh Africa                     125  

                           BRICS       2838   tonnes joint total

 So total BRICS joint tonnage of gold holdings (2014)   =  2838 tonnes of gold.

1 tonne =   35,274 ounces.

So the BRICS hold 2838  x  35,274   =  100,107,612 ounces of gold (jointly)

If we use (purely for example), a base figure of $1000 per ounce as the price of gold, we can say that the BRICS joint gold holding has a value (in US dollars ) of  :

100,107,612  x   $1000    =  $ 100,107,612,000

A figure which is *astonishingly close* to the $100 billion deposited into the new BRICS bank ? 

So here's the conclusion that I ponder.

Could it be, that in the next few months we will wake one morning to the announcement that they [BRICS], will have 'flipped', their 100 billion US dollars into 100 billion of a new currency 'Brics drawing rights', [BDR] ?

As the above calculations show, they could also peg their new 100 billion 'Brics' [BDR], to their joint (100 billion ounces), of gold holdings.  And given the ratio match of their joint gold holdings to 'Brics',  they can also peg that initial relationship of  [Brics <=> gold], value,... to any level they wish?

e.g         1 Brics = 1 oz of gold. ?

              1 Brics = 1/10,000th of gold ?

              1 Brics = 1/35th of gold ?

    or at whatever level that would work for world economic trading.

In one simple announcement such a move by the BRICS would circumvent the IMF's dithering over the creation of a Drawing Rights currency, by creating a new reserve~ kid on the block.   These new 'Brics' [BDR] (currency), would now become a viable world alternative as a (Means of Exchange), and a (Store of value), and a secure *pegged* value relationship with Gold !

Could it be that the five BRICS nations, have in 2014, with barely a whisper, initiated the first stages of a new world reserve [BDR], with the potential to be pegged to gold, and simultaneously given a death blow to the $?

Indigoboy

 

Thu, 07/31/2014 - 13:31 | 5028022 One Ton Lady
One Ton Lady's picture

the brics are controlled by the yid banks just like everyone else in this world these days. it would be a mistake to think that someone somewhere in this world , acts in favor of some nationalistic manner . nationalism is dead and internationalism is the key and always was. nationalism allows the goyim to have too much power over themselves and this cannot be allowed.  not in the world order plan.

Thu, 07/31/2014 - 09:05 | 5026782 Fix-ItSilly
Fix-ItSilly's picture

BRICS want the same thing as the US - printing rights. It is not in their self interest to peg their currency to gold - only to successfully float and manage their supranational currency to leverage their new found reserve fiat freedom and largesse.

Thu, 07/31/2014 - 09:27 | 5026869 Toolshed
Toolshed's picture

You are correct, but the printing rights could come later. As in after these nations work together to destroy the most evil country on the planet which has harmed them repeatedly over the years.....the USA. PRIORITIES!!!

Thu, 07/31/2014 - 09:42 | 5026937 Fix-ItSilly
Fix-ItSilly's picture

The BRICS formed this for "now", not a "maybe later".

Thu, 07/31/2014 - 05:37 | 5026445 The Most Intere...
The Most Interesting Frog in the World's picture

I believe you are right on the mark and behind the scenes the central banks are shitting themselves. In my mind there ain't gonna be no more QE. Winding it down no matter what. Choice, stock market go up or maintain reserve currency status? I believe it will be the latter. And bails ins will be the go to for propping up the banking system, not QE. My two cents...

Oh, one last thing. Gold will remain store of value but with challenge from BRICS forcing sound money it would seem hyper inflationary scenario is highly doubtful.

Thu, 07/31/2014 - 09:45 | 5026371 Ghordius
Ghordius's picture

Ron Paul: But you don't, I don't get in the business of saying in a year or two or three it's going to be two or three or four thousand dollars because it really challenges the basic fundamental beliefs of the Austrian school, to make these kinds of predictions.

I like the dear doctor and the Austrian School for this fundamental insight: predictions? are for entrepreneurs, not economists. The future is ultimate unknown, all you can do about it is an educated guess

Nassim Taleb had a further gem about the future: if you have to guess if something will still be there in X years, count back how long it was there (Y), and one of the best guesses is that if something was around for Y years it will be around for further Y years, ergo Y=X

Thu, 07/31/2014 - 01:40 | 5026282 EBT excepted
EBT excepted's picture

“It's roughly I think up 8% year-to-date. It's not a horrible move for gold but I think a lot of people were expecting to see a little bit more, especially with the instability that we're seeing in terms of the geopolitical situation. A lot of conflict around the world -- you'd expect gold to be higher right now.”

Thank you Captain Obvious...and I like the fine Doctor...

Thu, 07/31/2014 - 01:16 | 5026242 ebear
ebear's picture


"Gold Could Go To Infinity"

and beyond!

Thu, 07/31/2014 - 00:54 | 5026213 Notsobadwlad
Notsobadwlad's picture

If gold goes to infinity ... so will food prices.

Thu, 07/31/2014 - 01:06 | 5026229 fukidontknow
fukidontknow's picture

Seems like a pretty good reason to own gold then.

Thu, 07/31/2014 - 01:58 | 5026305 Squid-puppets a...
Squid-puppets a-go-go's picture

so if gold goes to infinity, 1 gram will be worth the same as 1 tonne

so my advice is only buy 1 gram of physical, let other losers stockpile the rest

Thu, 07/31/2014 - 07:16 | 5026525 CHX
CHX's picture

That is stupid. "infinity" is nothing but a VERY high number, when a currency collapses and becomes worthless. But that is not "the end", it's just the end of the currency, and some sort of new cureency will be issued and things start anew. If you own gold (or silver, or bitcoin, the latter hoping that the internet survives the reset) you will maintain your purchasing power from the old into the new currency system, that's it. So I'd rather own a tonne than a gram, but you do whatever you wish.

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