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Re: Toofuzzy post# 13893

Wednesday, 06/06/2012 8:26:05 PM

Wednesday, June 06, 2012 8:26:05 PM

Post# of 36488
There is one heck of a lot more dollars floating around than there is Gold. To back the dollar by 50% would require huge amounts Gold and it would put a shock in such a small market instantly. At that point, Gold would be the money not dollars anymore. That is why the Fed maintains Gold is not money but an asset. Sure they could stimulate the economy by buying Gold but they choose to buy treasuries that are unending - they can always originate more T bills whereas Gold isnt so easily manipulated. The minute the FED capitulates and buys Gold the dollar is dead.