At the BRIC Yard?
In Accounting 101 we learn of Double Declining Balance, where the depreciation is doubled each increment until it reaches ZERO. In concerns about draining an Entities Gold Balance, the Opposite Analog of DDB is used, so it is DOUBLE INCREASING BALANCE using an increment, perhaps 5 or 10 Oz.
The point here is both Mises and Armstrong outline what I consider an unarguable case for COIN exchange or convertible Gold Standard so that the GOLD
of any entity cannot be drained with fiat currency. Further restricting fiat would be prohibiting PREVIOUSLY issued FIAT from being used in this manner.
NO one knows how much US $ are out there, Euro-Dollar style, unregulated and unaccounted, so the DOUBLE INCREASING BALANCE would absorb them faster than you can say “Jumpin’ Jack Flash” while moving the METAL GOLD PRICE to its TRUE EXCHANGE PRICE, so long suppressed. For example lets
use a realistic 5 OZ increment. The most any body like Exchange Stabilization Fund (ESF) steadily buying 9 OZ increments, continually providing demand ?
Since it could NOT prove the funds used to purchase were pre-issued, its supply of Dollars it would become a liability on the FED’s balance sheet. Now lets
try the $Dollar Wave attack, 100 OZ at a time. First purchase is 5 oz at $2130 last coin price. 2nd purchase 100 oz(max) @ $4260; Insufficient pain? OK lets have a 3rd Purchase 50 OZ (Double Declining Balance, so /2) @ $ 8520. So each increment doubles the price and halves the quantity. Ask yourself how many doublings before it surpasses the $ 33,000 amount figured on the “Back of the Envelope”? So after the Raiders exercise in futility, if the price achieved reverts to a 2/3 correction, the market price now is $ 2850 Dollars, which is now the base from which market exchanges take place, and where any RAID must start. Now that BRICs are organizing, there is as much pain as BULLION BANKS or other Entities care to bear as a result of Cheating or Raiding. The next DAB balance is $17,040, and next after that is $34,080, so before we reach $68,080, one wonders where the MAX PAIN level is reached.
At least Gold BUGS, Gold Holding Indebted Countries are no longer crying in their Beer or Ale. In My Opinion, Gold Demand will appreciate, as any dips or downdrafts, will be met with the veracity of predator fish under a school of baitfish.. It Ain’t that complicated, really don’t even need an algo….!!!
Since we don’t, can’t know how much Euro-type Dollars are out there will be disqualified from this manner of exchange, whereas ONLY new entries to the liability side of the Central Banks, balance sheet. can be used to obtain Gold Metal. Good for honest holders, bad for fiat printers. These are only a few of the elementary means of putting a “Cheater Excluder” in place, much like Beaver Excluders are used to preserve roadway culverts. Not that hard, even engineers can do it. I say to the Cheaters ” TURNABOUT IS FAIRPLAY”, so read the cards in BRIC’s hand and weep.
Ha Ha, waiting since 2012 kinda gives me enough fuel to write this. Best to all GOLD BUGZ ! ! !
Want a copy of DGS Letter while it is still free, just drop me a line…………… Adio’s best to all.