US SPENDING ENTIRE GOLD RESERVES EVERY 6 MONTHS! Jim Rickards: No Way Fed Will Stop Easing, Ron Paul: ‘The Sequester Is A Joke, There Are NO Cuts!’
We “purport” to have just over 8.000 tons of Gold. For round numbers this is valued between $400 billion and $500 billion. The Fed has in place (probably clandestinely much more) a plan to purchase $85 billion per month of Treasury bonds that the Treasury must issue but nobody else wants to buy. $85 billion times 12 equals $1 trillion two hundred 60 billion. Numerically it is $1,260,000,000,000. The Gold “reserves” (probably close to mere fumes by now) represented the wealth accumulated by the greatest industrial nation on Earth. It took roughly 170 years to accumulate some 20,000 tons after WWII which was “officially” sold down to just over 8,000 tons by 1971.
JIM RICKARDS: NO WAY FED WILL STOP EASING
Dr. Paul dishes out the truth.
‘There aren’t any real cuts. It will do nothing to fix our debt problem. The budget is growing automatically at about 7% per year. With the sequester it will grow 6.9%.’
CNBC late Friday. Best Ron Paul interview in a long time.
“I am concerned about the risk that Washington might jam the recovery at the line of scrimmage by piling some more unhelpful near-term fiscal restraint on top of this already sizable effect,” Evans added.
Japan’s central bank failed to be aggressive enough, he suggested, miring that country in slow growth and deflation that serves as a warning for U.S. monetary policy.
“It is in fact that specter of repeating the Japanese experience that now keeps me up at night,” Evans said.
Today is the day when, if one listens to Obama whose idea it was in the first place, an unprecedented $85 billion spending cuts will be sequestered, unleashing famine, pestilence, the apocalypse and grizzly bears (as all park rangers will be dead from starvation). Which is why we applaud the administration’s desire to preempt this tragic for the nation outcome, by issuing, in one day alone: February 28, $80 billion in Treasurys sending debt to (obviously) what is a new all time high $16,687,289,180,215.37.
In other words, the entire apocalyptic impact of the sequester for 2013 was offset by one day’s debt issuance.