Robert Kiyosaki-Mike Maloney-Gold and Silver Investments
mrearlygold
Posts: 17,858 ✭✭✭
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
0
mrearlygold
Posts: 17,858 ✭✭✭
Comments
Some basic facts seem wrong. While they got it right that the monetary base (M0) increased by $900 BILL in the fall of 2008 (more than doubling), it did not increase another $1.2 TRILL in March of 2009. The money base is nearly the same today as it was in Oct-Nov of 2008: $2.0 TRILL vs. $1.8 TRILL. If you ratio it out you'd get a price of gold around $7500/oz to cover M0, or about $3400/oz to cover all the FRN's out there ($800-$900 BILL). I don't know why they picked M0 as the key item to price out future gold. One could just as easily use M1 or M2, even M3...or the total US. foreign debt. But I don't come up with the $15,000 as they did.
They also claimed that the US is responsible for about 70% of the world's currency. That's not true either. A chart I posted this past week showed US money base was about 20% of the world's total currency (US currency around $800-$900 BILL vs. $4-5 TRILL for the world). But things could have grown a bit in the past 1-1/2 yrs.
In the end, it's all fiat and not worth anything.
roadrunner