anons - here is my understanding of how gold will effect the power and preatices of the fed - the main thing the fed does EVERY DAY is sell us govt. bonds - each bond is a DEBT that must be paid with interest by we the american people. Big banks and other govts. buy most of the bonds. The "money" from these sales goes to the govt. - the federal budget is so fucked up that these bonds MUST continue to be sold to pay day to day expenses of the govt and that is why our budget "deficit" keeps rising - there is NO fiscal responsibility in Congress and has not been for many decades. Big banks and the fed are happy with this - WE THE PEOPLE are getting screwed.
Yes the Fed also BUYS bonds back but this is just a trick - they buy to increase the so called "money supply" so banks can make their own balance sheets look better (think stock values for rich fucks) at least for a quarter or so….
All of this is done on the "good faith and credit" of the US govt - that is WE THE PEOPLE. There are NO actual assets securing the bonds but since these "assets" are on the books it allows the trearuty to pay bills and print MOAR paper money - again all on credit.
To compare - when WE THE PEOPLE buy a home or a car we also issue a "bond" but it is called a Promissory Note - same thing - but in order to get that money we must also OFFER THE CAR OR HOME AS "COLLATERAL" (AKA "SECURITY") for the debt (bond/note) That was if we do not pay the bank seizes the property and sells it to pay the debt - as an aside consider the role of the DOWN PAYMENT - this is so WE THE PEOPLE have skin in the game and do not want to lose it AND to cover the banks expenses if we do. (except when the govt. ORDERS banks to give loans to non-qualified borrowers with NO down payment who default then WE THE PEOPLE have to pay it back - again with MOAR DEBT - think 2008 sub-prime mortgage crisis)
Now I am NOT against leanding money at interest (I AM against usury which is charging illegal or super high interest) BUT the sole purpose of DEBT is to FINANCE a CAPITAL ASSET! This is GAAP (accounting and tax) 101 - long term assets are good to finance to spread the cost of the assets over its (long) useful life. And the IRS ONLY allows us to treat LONG TERM assets this way.
NOW contrast this with a business that is bleeding cash - yes like the US govt.!!! In the past they borrowed (issued bonds) to pay for CAPITAL ASSETS just like WE THE PEOPLE - the only exception to that was WAR EXPENSE - which was an acceptable short term ER spending. Now see why ROTH wants wars? They have used WAR lending as a trap for centuries to justify more borrowing and more spending.
So we now find ourselves borrowing money not for CAPITAL ASSETS but also FOR EVERY DAY OPERATING EXPENSES. That is bad - very very bad - as common sense tell us all. Unsustainable. Yet the FED keeps us right there and supports the blood sucking spending of the US Congress - year after year - bubbles form - they break - WE THE PEOPLE lose and GM or bansk get a bail out with MOAR DEBT FROM THE GOVT.
POTUS knows all this - and that is why he knows GOLD will stop this cycle - because once the govt. is forced to hold physical GOLD to back their paper dollars (remember a dollar bill is a loan by the govt.) - the "LOAN" IS THEN SECURED - NOT ONLY IS THERE A DOWN PAYMENT BUT THE DOLLAR IS FULLY SECURED. Once this becomes a LEGAL requirement then there can be no more fake unsecured paper money issued by the Treasury and the budgets will have to be balanced - balanced by THE GOLD. In other words if we have 1 trillion dollars in GOLD we can issue 1 trillion dollard of greenbacks - thats it - no more gold no more greenbacks. SOLID STABLE currency.
This will require RESTRUCTURE of the FED so that they are no longer permitted to sell UNSECURED BONDS - again exceptions can be made for CAPITAL ASSETS and yes, ER/WAR expenses. But NO MORE endless supplies of fake money backed by future generations.
Will the system then be perfect and problem free? of course not - but it will be the fundamental transformation that Q and POTUS have worked for. (PS - i strongly suspect Q team has already located and seized massive amounts of bullion from the wrongdoers - KEK)