Tuesday, May 8, 2018

The dichotomy of debt: for the U.S. to back its debt with gold would require a price of over 73,000, but for Russia only $6,900

Perhaps one of the biggest anomalies in the financial system today is how the U.S. has nearly four times more 'official' gold than Russia does, but would require the gold price to be over 10 times higher than what would be needed for Russia to cover each one's debt respectively.

The U.S. 'reportedly' has around 8100 metric tons of gold and a national debt of over $21 trillion.  This comes out to a required gold price of over $73,000.

8133 metric tons x 35274 ounces/MT = 286,883,442 ounces.

$21 trillion / 286,883,442 = necessary gold price of $73,200.

Russia on the other hand has a 'reported' reserve of 1838 metric tons, and a national debt of just $449 billion.  This comes out to a required gold price of just over $6900 per ounce.

1838 metric tons x 35274 ounces/MT = 64,833,612 ounces.

$449 billion / 64,833,612 = necessary gold price of $6925.
Lastly, if we consider that the United States holds 8,133 mt of gold in reserve backed by $21 trillion of debt versus 1,838 mt of official Russian gold reserves supporting $449 billion in debt, Russia comes out as the clear winner.  For each ounce of gold that is supposedly held in the U.S. official reserves, there is over $80,000 of debt.  Now compare that to $7,600 worth of debt for each ounce of Russian official gold reserves. – SRS Rocco via Silver Doctors
Ironically as well, Russia announced last week that they had gotten their debt to GDP levels down to just 33% and this will be declining even more since the price of oil is going higher in the global markets.  But for the U.S., their debt to GDP, as well as overall debt, will only increase since they are unfortunately on the same track as Japan which currently has their debt to GDP levels over 250%.


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