Good point. Interest rates can't rise because no one in the US could pay the additional interest. A question I have is how much gold is owned by private US citizens? The 5% or so of the world's total supply the gov't owns seems low for a reserve currency.
Same reason US Treasuries haven't sold off. It isn't a massive capital re-allocation into equities. Guarded optimism with a hedge.
Yeah alot of it is gone. All the countries in all the world hold about 30k tonnes of gold total so that leaves about 135k tonnes unaccounted for. I suppose if you look around the world you can find some of it. That Gold budda in thailand weighs 5 tons. (134,999.9950 tons missing now) Worlds biggest nugget is 200 pounds (134,999.9949 tons missing now) Might take a while to find it all. Cant imagine where it all is. Even cheap gold jewelry cant take up that much weight.
what are you objecting to? the phase "convertible"? This from goldseek: http://news.goldseek.com/GoldSeek/1157122920.php · Article I, Section 8, Clause 5: The Congress shall have Powerâ¦To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures. · Article I, Section 10, Clause 1: No State shallâ¦coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debt. [4] In the above two articles it is clearly stated that Congress has the power to coin money, while no state shall coin money; nor make any thing but gold and silver coin a tender in payment of debt. Thus the Constitution states that money is gold and silver coin. It follows that if gold and silver coin are the only forms of money the Constitution grants recognition of, then Congressâs power to borrow money means gold and silver coin. Likewise the form of money to be repaid is gold and silver coin.
What? This is not logical. 1. Only Congress can coin money. 2. The states can use only gold and silver as money. 3. Therefore, Congress can coin only gold and silver as money? No.
That's not even what you quoted. What you pasted says that States shall not make anything other than gold or silver tender, it says NOTHING about the federal government making something else money.
Here is the hidden, sad truth: The U.S. has not existed for decades! (Side note: I do NOT think slavery was good.) The U.S. began to be destroyed during the time of the civil war. IIRC, the first time the US (under the constitution) used fiat money was during the civil war - you still hear the name for the fake stuff used during the civil war - they called this fake money "greenbacks." Even then, after the civil war, many of what were considered "states rights" were gone and haven't been seen since the civil war. This guy on the web has a decent amount of info on stuff like this. Here is a link (his date for Trafficant's speech on the House floor should read 1993 - not 1933). http://www.barefootsworld.net/admiralty.html The page is a bit long but WELL worth the read. If somebody does read it, please let me know what you think - especially if you are a lawyer! -g
When people say the constitution says this or that, the proper interpretation is what was the intent of the founders. That is how courts and judges decide cases. They judges them based on the intent of the writers of the laws. It is clear from the constitution that the intent of the founders was to have only gold and silver as money. Show me evidence to the contrary.