Comment: Dude! There are no reserves!

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Dude! There are no reserves!

http://www.economicpolicyjournal.com/2012/09/a-note-on-money...

Just look at that table. The banks don't even hold paper and you think there is gold backing any of the paper.

china's
Official gold holdings:
1,054.1 tonnes
Percent of foreign reserves in gold:
1.7 percent

USA
Official gold holdings:
8,133.5 tonnes
Percent of foreign reserves in gold:
76.3 percent
The U.S. had its largest gold reserves in volume terms in 1952, when reserves totaled 20,663 tonnes. Holdings first fell below the 10K mark in 1968.

One tonne is equal to 32,150.722 troy ounces.
664330368.686 ounces

$1700. per ounce

7,700 billion us dollars True money supply

7.7 trillion/664330368.686=11590.61$/oz.

7.7 trillion/1700=4529411764.71oz

4529411764.71-664330368.686=3865081396.02oz

664330368.686/4529411764.71=0.14667

Yep they only have about 15% of the gold they need to back currency

or 11590/1700=7 so the price of gold would have to increase 7 fold to back the current TMS.