j sinclair: gold balances foreign debt

j sinclair: gold balances foreign debt

This is part of what Jim Sinclair is saying - without market manipulation the gold price will balance the foreign debt.

Taking the foreign debt the US has today, 2011/09/13, removing Chinese debt, taking 90% of the balance, adding 50% of China's debt, then dividing all this by the  amount of gold supposed to be held by the US government (8,000+ tons?), the result is the price of gold that will balance the foreign budget.

This price is estimated by Jim to be $12,544 per ounce.

Using 8,000 tons exactly, 8000 times 12 troy ounces per troy pound times 2450 pounds per troy ton = 235,200,000 ounces.

235,200,000 ounces times $12,544 = $2,959,034,880,000 =  approximately $3 trillion, keeping in mind every country but China is writing off 10% and China is writing off  50%.