Jim’s Mailbox

Posted at 9:10 AM (CST) by & filed under Jim's Mailbox.

Warren does some math for us from the US debt clock. As you can see, no matter which category of debt you look at, if our “supposed” gold were needed to settle that debt then the dollar price of gold would need to be multiples higher. If Ft. Knox gold was required to cover the entire debt pyramid, we see a VERY LARGE NUMBER! Leaving you with a question, will there be more, or less debt in the future? Either answer can be argued but the result is the same either way…fiat currency burns up in a very large cloud of smoke!

Hi Bill and Jim,

I thought I would add the Fed Balance Sheet and US Consumer Debt to the numbers too… shocking when looking at the big picture. Take your pick of any number and the Gold price should be multiples higher!

Data sources:

https://www.usdebtclock.org/

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

https://www.statista.com/chart/19955/household-debt-balance-in-the-united-states/

namgcnpadacpdoii

Cheers,
Warren

Jim/Bill,

The story never changes. Wall Street gets a bail out, the tax payer gets the bill.

Dave

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet
May 19, 2020 ~

If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans.

The Federal Reserve Board of Governors consists of seven individuals appointed by the President of the United States and confirmed by the U.S. Senate. As of today, only five of those Governor seats have been filled. As of last Wednesday, these five unelected individuals were overseeing a balance sheet of $6.98 trillion at the Federal Reserve, which is 28 percent of the $25.3 trillion federal government debt that is overseen by 100 elected Senators and 435 elected members of the House of Representatives.

Over just the past year, those five unelected Fed Governors have grown the Fed’s balance sheet by $3 trillion in order to bail out bad bets on Wall Street.

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Jim,

You were the first to tell your readers this banking crisis started long before any one heard of Covid-19. Now many are seeing what you saw early on.

Dave

Another Gigantic US Bank Bailout Under Cover Of A Virus
May 18, 2020

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized – taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.” Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people. The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

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