Value comparisons

josie · April 21, 2007

Thank you Scott.

Very clever the gold going in full circle, in and out in the mint but the bulk of gold stays or lock up in safe place and somewhat maintain the value of circulating money and the gold is reserve if economic melt down for the international money organisation just and opinion

Countries with no gold that will be the problem for them.

RLC35 · April 21, 2007

Josie,

You are right, most gold is stored! In the USA most is in a bunker at Fort Knox, KY. Since the US has not been on the gold standard for many years, gold is more symbolic, than a hard assett of our currency.

As for making gold illegal again as it was in 1933, that would have very little effect on our economy. It is very hard to get a better economy than what it is now when 95.4% of the country is employed (4.5% unemployment).

There is an exception though, Michigan has a real recession, especially Detroit, where the unemployment rate approaches 12-15%, due to the collapse of the American Auto Industry there!

Bob C.

josie · April 21, 2007

Yes RLC you are right.

Just wondering why the convertion of US dollar against other currency is going up like the GBP 2:1 and the Phil. peso a developing counrty is 46 peso to one dollar and in the past reached as high as 54 pesos to one US dollar.

Is there is somethng in US economy is happening that I dont undertand or it is all about the US deficit or something like oil or other products or their debt.

RLC35 · April 21, 2007

Josie,

I think the biggest issue is the oil supply. The US is so dependant on foreign oil, it hurts us in the balance of trade. We have been slow to find alternate types of energy. The Central and South Americans have been far more progressive that ourselves, with the use of ethanol fuels, and the like.

We are building ethanol refinerys at a fast rate, and since we have an ample supply of corn and suger beets, (the products they make ethanol from) that should help considerably. It is still a long term issue for us though.

As for our currency even at 2 to 1, we are gaining against the UK pound sterling. When I was young, a English pound was worth 5 US dollars. But in the last year we have lost a little ground going from about 1.80 to almost 2.00 US$ per poiund. The Phil. Peso and the US$ are a little less volatile, but there is still a trend going on there.

Our economy is very strong at the present. The DOW Jones Industrials (stock market) set an all time high Friday of 12,961, which is a positive sign.

Thanks for the information, it has been pleasant talking to you about this.

Bob C.