Like to get some opinions...???

I'd like to set up a hypothetical scenario here and get people's opinions about the possible outcomes and ramifications. This is actually a serious question, about a real-world possibility, and real-world consequences.

Let's say some very indigenous native in a very remote and under developed part of a country was out subsistence hunting one day and found an interesting rock. The hunter picks up the rock because it looks cool and brings it home to his family. His family loves the rock and they display it inside their thatched hut for decades, maybe even generations.

One day a visitor from the outside (developed) world shows up, the visitor sees the rock and inquires about it. The native, thinking nothing otherwise, tells the visitor all about the rock and where he found it. Soon, the visitor leaves and that's all the native ever hears about the matter. UNTIL...one day the hunter tries to go hunting in the area where he found the rock, and suddenly the while area is completely off limits. It has become a forbidden zone and no one is allowed to go anywhere near the place.

Over time the native see's people come and go from the remote area by helicopter, but because the area is a forbidden zone no one knows why or what they're doing.

(NOTE - I'm going to abridge the story here to keep it short-er, and cut to the chase). ...

What the native found was some of the purest gold deposits on Earth. Deposits which contain even more gold than South Africa, the US and Canada combined. A gold deposit tens of thousands times larger than has ever been mined in all the history of mining gold (or even known deposits yet to be mined).

Governments, being what they are, eventually word of this gold deposit would get out, certainly to other governments at a minimum (through spies, intelligence gathering or other method). Now the question would be what to do about all this gold. Should it be mined, or should it be kept secret?

Once upon a time, the global economy was based on gold. We now know this is generally not the case today owing instead to "fiat currencies". But fiat currencies are still based on the notion of value, and value is derived from things like gold and other precious commodities of value. They are based on a concept of "trust" and the use of financial leveraging of debt to establish value. Yes, it's a different concept, but the fundamental underpinning concept remains the same.

Now, back to the question about what to do with this gold. Key World leaders get together and agree that exploiting this gold has the potential to disrupt the entire world economy. The concept of "value" would be turned on it's head. If the host country were allowed to exploit this gold they could suddenly change the dynamics of economics across the globe. The country would quickly pay off all of its debts and flood the markets with gold to the point it was worth nothing. Other economies would be reeling...until they found something else to base 'value' on.

(Note - Sidebar thought here - There are also some interesting parallels to the whole crypto-currency markets in this discussion also. For example, the notion of "work" needing to be performed in order to establish "value" in bitcoin mining as an example. There are others too)

Pretty soon, the host country starts to get a little more aggressive about their gold and threatens to mine it anyway. The other superpowers of the world threaten them back with apocalyptic destruction if they do (i.e. nuclear war). And, much as the Cold War ended, there is a tenuous equilibrium of "mutually assured destruction" established. The end result is...the gold will be kept secret from the world.

Geographically, the gold is in a location which is so remote, and so heavily controlled, that no person or group would ever discover it (and there are places which fit this criteria). An international pact is established which agrees to keep the deposits secret for generations until a mutually agreeable solution can be found about what to do with the gold which won't result in almost universal economic peril and ruin.

Wow! Right?

But what if this was real, and what if it has already happened? AND, what if it's been going on for decades without anyone knowing? But then...along about the late 90's, technology comes along to give people a glimpse into places in the world they've never visited personally. Places they'd never be able to visit. Suddenly the secret is at risk of being exposed, and there's a mad scramble to keep it under raps. Once again, TPTB prevail and manage to use this same technology to pull the veil over their great secret...for a while anyway.

Now to the main question of the OP....

What do you think about the likelihood of such an arrangement were such a discovery to be made? In short, do you think it would go down like this? If not, what do you think would be the outcome...and the mechanics/impact of the economics as a result?

P.S. - I have very good reason to believe this has already happened. I've spent nearly 17 years researching it, and I'm not joking around either.

Note: No UFO's here, no magical powers, no gods or ghosts...just a great big, in-measurable, amount of gold, the very thing which established the concept of modern day currencies which were originally backed by gold, and then leveraged with fiat currencies. The basis of the departure from the barter system, transportable "value".

What do you think?

That story is close to mimicking John Reed’s doorstop .

But in this scenario

The smart thing to do would be call your broker up and tell him to buy silver .

a reply to: Fallingdown

What's 'John Reed's doorstop'?

Is that a book or something?

Nvm...I see it now. Yes, quite similar, although I never saw that before.

a reply to: Flyingclaydisk

along about the late 90's, technology comes along to give people a glimpse into places in the world they've never visited personally.

Are you talking about google earth?

All I know is there is a beach in Florida. It is the only beach you are not allowed to metal detect on.
It is the only beach I visited that I saw a truck with machine guns visibly displayed, just disappear somewhere.
Something is in that water and possibly under that beach.

I know with google earth people are now able to see things in the water and even solve old crimes!

a reply to: JAGStorm

Not wanting to derail the discussion from the focus, I'm going to hold off answering what the technology is...for the moment.

It's not a secret, it's just that the answer will distract from the overall point.

ETA - I will say one thing though...this subject is the very reason I joined ATS to begin with.

a reply to: Flyingclaydisk

This didn't happen in Peru by chance?

Nevermind... Great question.
If more gold is found, it would no longer be considered rare and immediately de-value. Thus crippling the Gold Standered.

Wow I have no answers and need to think...😮



Edit: are you refering to nasa's GRACE Satellite?

a reply to: Flyingclaydisk

John Reed’s doorstop is what started what some people refer to as the first gold rush in America. In the 1700s a settler found a interesting rock in the Carolinas. He brought it home and used it as a doorstop. Eventually a jeweler came by and saw it and realized it was A 17 pound gold nugget. The areas associated with that find are still being mined and prospected to this day .

a reply to: Fallingdown

Very similar evolution. I actually just conjured up the events to serve as an example, but I have some research which seems to suggest something like what I wrote happened. I guess I just lucked out on the John Reed thing. Very similar though.

I guess it's sort of like finding anything the first time. However, in this case, the material (gold) is the important piece of this.

originally posted by: Flyingclaydisk
a reply to: JAGStorm

Not wanting to derail the discussion from the focus, I'm going to hold off answering what the technology is...for the moment.

It's not a secret, it's just that the answer will distract from the overall point.

ETA - I will say one thing though...this subject is the very reason I joined ATS to begin with.

My mind is going in a million directions..

Iran comes to mind #1

am I warm.......?

Places in North Korea also come to mind.

Yes I do think those in power would not want this gold, or that country to be able to have that kind of control.
What would those countries do. Well, I think pretty much anything. Create a war, and keep the discovery hidden.
Just like back in the Wild West, finding gold seemed to bring an equal amount of good and bad luck! Makes me think of
the Colorado Mother lode that is out there somewhere.

a reply to: Bigburgh

No, didn't happen in Peru, at least to the best of my knowledge.

Well, the location isn't really the point here, but just so it doesn't sidetrack the discussion with people guessing...I believe the location is in far north east Russia. But again, that's not really the point (not yet anyway). We might get there in this discussion, but first I just wanted to get input on the government(s) reaction to such a discovery.

While reading this, my first thought was about the diamond industry. If Debeers let go of the diamond inventory they hoard and manipulate to keep prices high, the value would drop to pennies on the dollar. Anyone that pays retail price for a diamond is a fool.

Gold is not that important on a global economic scale. It pales when compared to the amount of money that gets created out of thin air every minute of every day.

Any economic value is based on scarecity, not just valueable resources

a reply to: CharlesT

Yes, very good point and analogy. However, diamonds were never really a standard of economic value for trade, whereas gold is/was.

In other words, the value of diamonds being huge or zero really has no impact on world economies...simply because the quantity is so small in comparison. Consequently, they don't translate into transportable currency for trade very easily.

DeBeers is making it good for DeBeers, but if diamond values went to zero tomorrow only DeBeers would suffer (and a few others), not the entire globe.

a reply to: Jubei42

Yes, I already covered this with the fiat currency thing in the OP. The point is, fiat currencies would never have been possible without the gold standard to create the 'trust'. Then that backing was leveraged. This wouldn't have been possible without a tangible asset to back up the currency initially.

Undermine that now, and you disrupt all notion of value, thereby disrupting entire economies. Those leveraged fiat dollars become worth less than zero overnight, and there's nothing to prop them up.

ETA - Something could probably be found to create the same trust, but it would take years, possibly decades or longer to get everyone to agree on it. (i.e. Is it diamonds? Is it wheat? Is it fresh water? Corn? Silver? Copper? Uranium? Air? Unobtanium?)

Economies are artifices built upon the notion that a resource is necessary, rare or both. Value, as an abstract, is inherent in such resources but the definition of that value is a construct.

IE water is mandatory to live - but how much one should pay for access to water or to the mechanisms necessary to transport the water ( or both ) are manufactured concepts. Particularly in societies that currently exist where that water may naturally exist on land that is considered, by all, to be privately owned.

I think what you're asking here is what if person A owns the land where the towns aquifer happens to be and the town has been built, to some degree, around the concept of paying that person for water. It's an aspect of the towns ( or societies ) economy... Well what then happens if another person drills and finds water elsewhere in the town... Or if a drill salesman arrives and suddenly everyone in town can access water on their own land without having to deal with the preexisting water utilities at all?

If I'm reading this right then I'd guess that the gold you speak of is likely less shiny rock and more something like efficient and renewable energy.

In that case the answer is pretty cut and dry. The guy who owns the original aquifer either takes it on the chin and the towns economy adapts and finds some new paradigm... Or he gets his friends and subordinates to spread lies meant to control the narrative ( No. The water under YOUR land isn't like ours, yours is toxic - for example ). Maybe he discredits the drill salesmen... Or pays the town marshal to throw the salesman out... Or pays to have him murdered. Or all of the above.

It all boils down to how much power controlling the resource allocates to the few who control it and how much the populace covets and needs that resource.

a reply to: Hefficide

You make good points on several tangential areas, but the question is really a world economy question as stated.

The water rights discussion and necessity is a very 'deep' subject, and one I am very familiar with. Especially as it relates to land ownership, mineral rights and water rights. But again, this is more about economics.

I agree though on the notion of economies are artifices. However, they are necessary artifices in order to conduct our daily lives.

a reply to: Flyingclaydisk

PM me the location of the gold then we can talk further.

a reply to: Flyingclaydisk

Currency is just an in-between to accommedate trade. It doesn't need to be backed up by anything because it represents everything we do.

There is not a single item in this world that will hold its value we gave it

Seems to me, unless I'm over simplifying this, that they would have to try to keep it a secret, lest cause a global financial crash?

Because that much gold would certainly devalue it, right?

And as far as the tech, seems like they still would have the tech to make "black" spots" wouldn't they? Don't they do that now?