Yep. they would literally have to SHOW the gold by opening the vaults. And it is quite unlikely that even if they do have gold in the vaults, it would actually belong to them and not other countries. Ain't gonna happen. The gold is more than likely gone (or in much smaller supply than the supposed 8,000 tons). Most of it is in China now (which if anyone cares to do the research will see that they have in excess of 20,000 tons, no joke).
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Yes, and even IF they have still 8000 tons, it would not really serve as a backing for all those trillions of dollars. Nobody really knows how many trillions it actually is. It would probably end up being a 0.0001% backing or something, which is meaningless. And they would have to stop creating new debt, too, which doesn't work anyway since everything comes to a grinding halt then.
Exactly. Well said. Not enough gold for adequate backing and the system would implode if they reversed any new issuance of debt - another thing Greg seems to forget which would not permit his proposal to work.
Well, the only other option would be, to evaluate gold at a entirely different level. Like $ 100,000 per oz, or so - but that would be like a dollar inflation in a way. Well, its what Greg always demands - a correction to fair value, of all assets.
But the other thing, no more debt, is even harder to achive. The whole system is based on growth, not on functioning at a permanent level. Everything is supposed to keep growing, which is a impossibility in itself. Yet we expect just that.