We have lent a huge amount of money to the US
so of course we are concerned about the safety of our assets
Frankly speaking, I do have some worries
Chinese Premier Wen Jiabao
If Executive Order 6102, signed on April 5, 1933
let the Federal Reserve confiscate gold for $20.67 per troy ounce
and the government raised the price to $35 not long after
did the US government devalue the dollar by 41%?
The Gold Reserve Act of 1934…
changed the value of the dollar in gold
from $20.67 to $35 per ounce
This price remained until August 15, 1971
when President Richard Nixon
announced that the United States
would no longer convert dollars to gold at a fixed value
thus abandoning the gold standard for foreign exchange
Have the leaders of most emerging economies
essentially been stealing their citizens’ savings
by lending money to developed economies
to keep currency exchange rates relatively low
to encourage more sales of manufactured goods?
If global central bank foreign exchange reserves more than tripled
as the US dollar fell by ~50% since 2000
did Americans buy manufactured goods from foreign nations
with IOUs that are now worth about half as much?
Who is the largest holder of US Treasury debt?
What could happen
if a generation of underemployed, underpaid
educated and indebted young adults
become disillusioned by their elders’ financial mismanagement
and seek to identify and punish those responsible?