dollarThe Government debt increased $672 billion during FY2013.  HOWEVER, remember that right after Obama signed the temporary budget deal (after the 2013 FY), the Treasury debt jumped by $328 billion.  This was money SPENT that was borrowed using the “tricks” Jack Lew said he would use during the 2013 fiscal year.  It was debt that would have been issued in FY2013 but the Government couldn’t issue it.  SO, the real spending deficit was $1 trillion even.   If you add back the FNM/FRE dividends, it was over $1 trillion.

300px-Fort_Knox_tankSubmitted by Bill Holter

We “purport” to have just over 8.000 tons of Gold.  For round numbers this is valued between $400 billion and $500 billion.  The Fed has in place (probably clandestinely much more) a plan to purchase $85 billion per month of Treasury bonds that the Treasury must issue but nobody else wants to buy.  $85 billion times 12 equals $1 trillion two hundred 60 billion.  Numerically it is $1,260,000,000,000.  The Gold “reserves” (probably close to mere fumes by now) represented the wealth accumulated by the greatest industrial nation on Earth.  It took roughly 170 years to accumulate some 20,000 tons after WWII which was “officially” sold down to just over 8,000 tons by 1971. 

Fast forward to present day and what are we doing?  We are spending ALL of our Gold every 6 months!  And this assumes that we have the Gold!   The real number is probably 500 times over if you use actual debt.  The number is an “infinite” amount of times over if (it is) the Gold is gone.