Snippet:

"Could Bernanke be thinking, "If I unilaterally raise the price of the US's vast hoard of gold to $5000 or more an ounce, it would be inflationary, and we'd get out of this deflationary mess. And, after all, who'd object if I raised the price of gold? And if I backed the dollar with gold, the dollar would continue to be the world's reserve currency. If the dollar was backed by the world's largest hoard of gold, what fool would be able to talk down the safety of the dollar?"

Russell Conclusion -- The US is facing a brutal problem dealing with its unfunded liabilities. I can't be the only one thinking about raising the dollar price of gold. Question -- Why are China, Russia and the Asian nations so intent on building up their gold reserves? And why are so many central banks now reversing their stands on gold? Instead of selling their gold, the central banks are now trying to buy gold. Think about it!!"

Comment:

I believe this will happen, only I believe the price of gold will be set much higher (See old SH post - "Devalue U.S. $ by 50% and back by gold at $32,000.00/ounce").

The problem I have is this

"Why hasn't it happened already?"

Could it be because of the U.S. reluctance to audit their gold?

Could it be that most of their gold is "Tainted" and won't stand up to scrutiny?

Could it be that the FED now controls the gold as collateral for unpaid debts from U.S?

Could it be that the gold has magically "dis-appeared"?

Could be an interesting couple of years!

Happy New Year all!

and

Good Luck to all!