Keeping Up Appearances

Warning: the following post may contain numbers and facts that may cause nausea and headaches.  Parental discretion is advised.

Why does the United States spend money that it really doesn't have?  Why does our federal government and state governments (I'm particularly concerned with Illinois) seem to be driving our economy's into ruin?  Is there any way to stop it?  I have the answers to these and so much more. So, before we proceed, go to your liquor cabinet and pour yourself a long, tall one. You'll need it.

For several years, I've followed tale after tale of conspiracy theories about our present economic picture.  I've heard stories that would drive a sane man into hopeless despair over his future security.  I've researched different theories on the US dollar and it's future place as the world reserve currency.  I have seen data on analysis of future predictions for United States and Chinese gold holdings that paint a desperate picture for the future of this country (United States).  It is not a pretty one.  Recently, while clicking on articles on websites that lead to other links to other websites that lead to paid infomercials that lead to "limited time only" deals on newsletters, I found a little truth that leads to a bigger truth. And that truth is this, the United States really doesn't have much gold left in the bunker at Fort Knox.

Here's a brief summary - every month the US commerce department produces a report on the imports and exports of the United States detailed in a document labeled FT900.  According to a man named Jeff Opdyke, this report clearly states that the United States has been exporting much more gold than it has been importing. So much more that an audit of the holdings of the Federal Reserve is in dire need but all attempts to audit the gold in Fort Knox have resulted in failure.  There has not been a audit conducted establishing the actual physical gold quantities in Fort Knox for decades.  In the meantime, without any established confirmation of current reserve holdings, the gold holdings of the United States has seen a significant decline from the 1950's from a wealthy 20,500 tons of gold (yes - that's tons) to a level in 1972 reported at 8500 tons.  According to Mr. Opdyke, editor of the Soverign Investor publication, the reported level of gold held in reserve in the United States is close to the same levels reported in 1972.  With a loss reported each month in gold exports, how could the United States maintain levels reported back to the 70's.

The answer is simple - we really don't have much gold in reserve in the United States.  So the question that you must ask yourself and your elected officials is this - what backs the currency now used in a fiat currency we all currently use?  Without any real wealth backing the promise seen on every dollar the US mint mints, what gives the US dollar its value? As Mr. Opdyke tells us, and with which I totally agree, the US dollar only holds value as long as the world trusts the government of the United States.  If you take a moment, right now, and pull out a treasury bill you currently (hopefully) hold in your purse or wallet right now, the only thing that gives that dollar bill any value is a promise, from the government, that it's actually worth something.  If the United States suddenly revealed that coffers are empty, what trust is there?  Why not conduct an audit of the gold holdings held in Federal Reserves? The reason is simple - realization by the people represented by thugs and liars would be calamitous.  All h-e-double hockysticks would break out.  According to Mr. Opdyke, the Chinese do not make such reports of the their gold reserves except for every three years.  At the current rate of their reporting, a new report for the Chinese wealth of gold should be produced this month (April 2014).  The estimated net holdings of the Chinese government in gold has been estimated at five times that of the United States.  There is currently a push by other influential world economies and governments to move away from the US dollar as the world reserve currency.  With this possibility, a very real possibility based upon the upcoming gold report by the Chinese, the US economy would be driven into chaos filled with double digit unemployment and ultra-high inflation.  The de-valuation of the US dollar would quickly erupt into the printing of currency by the treasury to try to stop inflation. Toilet paper would hold more worth.  Even the crap on used toilet paper would be worth more.

So there's the possibility.  Which leads me to the why.  I'm a big fan of the "why".  I just love knowing.  And this is my best intelligent guess to the "why" on United States federal and state level spending.  Keeping up appearances.  Why would so much money be poured into losing campaigns for such winning programs as "Cash for Clunkers" and green energy initiatives?  Why would our government conduct such heavy spending into promoting a losing proposition such as "healthcare for all" with the advent of Obamacare?  Why even push for Obamacare?  Why bail out using close to a trillion dollars of easily printed money back in 2008?  Why are we spending money that everyone knows has no real value?  It's a big heaping pile of illusion.  Keeping up appearances -For some of you, you'll recognize the the reference Keeping Up Appearances as a title to a popular British television show.  If you have never seen this BBC produced comedy sitcom from the early 90's I highly recommend it.  If ever there was a mirror image of the madness of the federal government, this is it.  The star of the show,  Hyacinth Bucket, is a woman on a mission.  To consistently produce an image of wealth and austerity and class. A woman who believed in refined selections and pretensions vastly surpassing any reality life threw her.  Her roots were humble but the life she chose to portray to her audience (anyone who came through her door or lived beyond that door) was a life of decadence and eloquence.  When she answered the phone (if she must) her formal and ladylike presence could be heard through the receiver with her classic "The Bucket' residence - the lady of the house speaking" always informing the caller of far too much.  Arrogance and self-disillusionment.  A higher standard of life than her poor husband Richard could really afford.  Her friends and neighbors easily saw through the charade but never thoroughly confronted her. The biggest difference is Hyacinth did not own her own money printing press.  That's a shame.  The show could have shown us a beautiful take on education and healthcare.  Perhaps even a socialist tint of charity to all of those with far less elitism.  Yes, keeping up appearances is all some of us really have that's of worth.  All you really need is a pen and a phone.  And a title of royalty.  My name is Rueuhy and I approve this blog.  For charitable donation to keep up my appearances please email me at  rueuhy@gmail.com.