The US has “only” 375 Billion USD worth of gold. The US debts can not be paid back in gold.
How will the US pay back its 14 trillion USD state debt?
The U.S. borrows USD 125 billion per month. To start selling assets sold would only buy the Americans a limited amount of time.
According to WGC data, the U.S. possesses the most gold globally in terms of percentage of foreign reserves and tonnage. Nearly seventy-five percent of its reserves are in gold, and it has 8,133.5 tons of gold.
George Milling-Stanley is the managing director, government affairs, for the World Gold Council.
“If we sold all of our gold, that would be USD 375 billion. So we’d run out of money in August and we’d have no asset to borrow against. It’s just a drop in the bucket. The problem is the debts are in the trillions. The basic point is it’s not a smart thing to do,” he said.
Of all the troubled southern-tier European countries, Portugal has the greatest percentage share held in gold of total foreign reserves. According to the most recent calculation of world gold holdings, Portugal has 81 per cent of its total foreign reserves in gold, at 382.5 metric tons. That figure is calculated by the World Gold Council using International Monetary Fund’s International Financial Statistics.
By tonnage, Italy has the most reserves of the PIIGS, at 2,451.8 tons, which is 69.2 per cent of its reserves, and is the fourth-largest holder of gold globally, behind the U.S., the IMF and Germany. Greece has 111.5 tons of gold, which is 79.3 per cent of its reserves and Ireland has 6 tons, which is 13.3 per cent of its reserves.
When the gold is gone, how to pay back the debt?
German top politician suggested Greece hand over some island to German occupation.
Lets take a look at the ongoing debate:
Greek Prime Minister Georges Papandreou has said privatisations are now one of his government’s top priorities.
But he lashed back at proposals by some German politicians that Greece give up one of its islands or a historical monument as a warranty for fresh loans.
“To ask us for an island or a monument as a warranty is almost an insult,” Papandreou told the Italian daily Corriere della Sera in an interview published on Saturday.
“The Greek state must sell stakes in companies and also assets such as, for example, unpopulated islands,” Frank Schäffler, a member of parliament for the pro-business Free Democrats, told the Bild daily.
Marco Wanderwitz, an MP for Merkel’s own conservative Christian Democrats, said Athens should provide collateral for any money it receives from the European Union to help it out of its debt crisis.
“In this case, certain Greek islands also come into question,” added Wanderwitz
The US has a lot of land. Since the state of California is sinking into the abyss of debt, China will most likely not attach Hollywood as repayment.
But Alaska is a hot asset, and can even be given as a future debt swap to both Russia and China.
Saudi Arabia wants Israel in exchange. The problem is that some Jews do still feel Obama is not the caretaker of their land, and can not hand Israel over to Islam.
Written by Ivar