You may think this will be a wild ride. If you think collateralization, currency equivalents, double-entry bookkeeping and mortgage-backed securities are dull subjects – if you think wishful thinking is a harmless activity – if you think taxes are essential for the development and maintenance – rather than the destruction – of civilization, then, yes, this will be a very wild ride. We are about to study concepts and actions, crimes and fictions that few, if any, others have examined yet relative to their influence on gold.
Instead of using gold as collateral, the dollar, today, is collateralized by US Treasury securities, which carry value only as taxes can be collected against future generations of Americans: a kind of cannibalism. This is a hideous case of wishful thinking. Thus, today, wishful thinking has replaced gold as backing for most of the world’s currencies.
It may also be a disturbing study; for, the dollar is the world’s reserve currency. It is used as gold once was used: to serve as backing, or collateral, for issued currencies around the globe; in the dollar’s case, it serves as collateral for many of the world’s major currencies: the Euro, yuan, yen, and a few dozen others are, thus, built on top of the house of cards known as the dollar.
We should ponder the question, ‘What happens when men build their societies on houses of cards?’
There is more: the US Treasury and most, maybe all, central banks openly admit that the gold listed on their balance sheets is in physical and receivable form. In other words, it is not all there. It leads to questions such as, ‘Who took it?’ and ‘How shall we recover it?’