Gold and World Debt
By GCRU Gold News on Saturday, October 1 2016, 00:06 - Permalink
Since the financial crisis in 2008 central banks worldwide have tried to deal with the exorbitant world debt by trying to inflate it out but without much success until now. There are two solutions to create inflation besides printing currency.
One is to reset the price of gold to a much higher level as it was done by the US in 1933 when the gold price was reset from the nominal price of $20.67 per troy ounce to $35 per troy ounce. A year earlier in 1933, by an executive order it was made a criminal offense for US citizens to own or trade gold anywhere in the world, with exceptions for some jewelry and collector’s coins. A reset of the price of gold to represent 40 percent of the monetary base today would mean a gold price of around $5,000 and for a 100 percent of the monetary base it would mean a gold price of around $12,000.