Weird Things Are Happening With Gold

CampeadorCampeador Posts: 221 Bronze ✭✭✭
This is interesting......






Why an impromptu visit by Mnuchin and McConnell? Why now?

The answer may lie in the fact that the Treasury is running out of cash and could be broke by Sept. 29 if Congress does not increase the debt ceiling by then.

But the Treasury could get $355 billion in cash from thin air without increasing the debt simply by revaluing U.S. gold to a market price. (U.S. gold is currently officially valued at $42.22 per ounce on the Treasury’s books versus a market price of $1,285 per ounce.)

Once the Treasury revalues the gold, the Treasury can issue new “gold certificates” to the Fed and demand newly printed money in the Treasury’s account under the Gold Reserve Act of 1934. Since this money comes from gold revaluation, it does not increase the national debt and no debt ceiling legislation is required.

This would be a way around the debt ceiling if Congress cannot increase it in a timely way. This weird gold trick was actually done by the Eisenhower administration in 1953.

http://www.zerohedge.com/news/2017-08-30/weird-things-are-happening-gold

Comments

  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    Weird things are happening... and in the grand scheme of things ...not many people seem to be paying much attention to precious metals.
    I try to sniff out interest in metals and alt investments at work or happy hour conversations, and most people are index funds, bonds, target-date automatic 401k allocations, or "big name" FANG-tier stocks.... and now the occasional person who got into bitcoin after it took off and hit MSM.

    In this forum, it might seems like there is a lot of interest in the gold space, but in "the real-world" ... anecdotally... for me, people are extremely fiat dollar centric, and overall awareness is quite low.

    I overheard a conversation at work (in a global company) talking about USD USD USD, and terms, and interest rates.... but things ARE happening... we need to consider the possibility of having to change that USD-based pricing lexicon....

    btw... I think this is a bold call by Jim Rickards... we'll see what happens. time will tell
  • CampeadorCampeador Posts: 221 Bronze ✭✭✭
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