Chris Osborne

One might understandably ask WHAT MONETARY IMPORTANCE THIS MIGHT HAVE? Let's consider the following hypothetical.

The U.S National Debt is rapidly approaching $6 Trillion. Via control of One Billion gold ounces, the U.S. Fed is in a leveraged position to REVALUE the price of gold to $3,000 per ounce. At the new price U.S. gold reserves would be valued at $3 Trillion. Consequently, this would provide a 50% gold backing to the record burgeoning National Debt of $6 Trillion. Confidence in Uncle Sam's ability to pay his IOUs would be restored - thus allowing the USG to further increase the National Debt to resolve many looming problems. Moreover, creditors (i.e. many foreign governments) would be persuaded NOT to dump U.S. Treasuries - as the greenback now enjoys intrinsic worth via the gold backing.

Needless to say many positive political ramifications would abound (depending on which side of the "fence" you are on).


Chris Osborne

18 June 1998
(full article : http://www.gold-eagle.com/editorials_98/osborne061898.html)