Re: Bitcoin popularity will increase, when no Gold is found in Fort Knox.
I am very curious on why the American public has not insisted that a full audit must be done on the actual Gold that are stored in Fort Knox and other secure places in America. They blindly accept that there are lots of Gold stored in the vaults in Fort Knox and all over America. The government has no right to withhold that information, but the public is not demanding it.
Why?
1. They know that if this is true, their economy will PROBABLY collapse?
Indeed. Since the dollar is tied with gold and the US government claims to have the equivalent of each dollar in gold then the price will easily collapse once someone will leak a video about how catastrophic the situation is in Fort Knox. Why?
1. They know that if this is true, their economy will PROBABLY collapse?
I consider the USD untrustworthy since 70' when they suspended its convertibility into precious metals.
Damn, I never thought that there are still people who think fiat currency/dollar price are tied to Gold.
The US Dollar has not been linked to Gold for the last 45 years, since president Nixon abolished that in his term as president. The only link to the Dollar is that it is mainly traded in US currency, so a weaker dollar makes Gold less expensive for other countries to buy it. So it is important for the US government to protect the dollar price and a shock like this, will definitely influence the dollar price and the Gold price, if this Gold did not exist.
I was just thinking the same thing. The dollar is its own boss. It is whatever the Fed says it is.
I thought that a weaker dollar tended to make gold more expensive as investors look to it as a hedge. When the dollar is strong, investors prefer it over gold as it yields interest, whereas gold does not. So in addition to a higher value they can gain a few percent on the interest rate.
They're probably messing with the supply, just as the do by establishing futures contracts. To be honest, because of the massive amount of "invisible" gold created by futures contracts, I'm not sure that the existence of this gold in Fort Knox would have that big of an influence on the price of it anymore. Other than of course giving gold bugs a good reason to buy more.
It becomes a problem if they are using that Gold to manipulate the Gold price. They might be siphoning off some of that Gold or simply moving it around to artificially pump the price and then trade with this on open markets. In essence they are cooking the books and doing something else with the assets.
The thing is, nobody will ever know, because it is a highly controversial issue and the government is guarding that secret more than they are guarding their nukes.