game of musical golden chairs works fine, until the musical economy
stops. When countries start to rack up debt and desire to sell their own
gold to pay the bill, and they can’t get it, they get nervous. Now, if
the economy is going south and the price of gold is heading up because
of fear, those people holding paper gold in the form of futures or just
deposit promises begin to sell off for profit or out of financial need.
So long as it’s a trickle, no problem, but if it becomes a torrent….
Remember the 140%
rule? Well, what if the Federal Reserve only kept 60% of the 100% that
the paper gold was written on? Now there is an 80% shortage. Someone is
about to have their musical golden chair pulled out from under them.
They will get paid, BUT that payment will come as fiat currency. As the
golden parachute deflates, how good is fiat currency? This is why there
are so many on the fringe demanding to see the gold reserves and others
are saying gold will hit $5,000 an ounce or higher. It is theoretically
possible that for each gold promise, that it is backed by 1/5 or less of
physical gold. No one knows, because no one can audit the physical