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With public debt at high levels, some governments have begun to explore financing additional expenditures without raising taxes while also not increasing public debt outstanding. One possibility is using proceeds from valuation gains on gold reserves, as has been floated in the U.S. and Belgium recently.1 For the U.S., this would involve revaluing the government's 261.5 million troy ounces in gold reserves—the largest gold reserves globally— from a statutory price of $42.22 per troy ounce to current market prices, which stand around $3300 per troy ounce.2
This note reviews the rare cases when countries used proceeds from valuation gains on gold and foreign exchange reserves. Over the past 30 years, only five countries have done so—Germany, Italy, Lebanon, Curacao and Saint Martin, and South Africa. What motivated the governments in these countries to use the proceeds from valuation changes in their official reserves? How were the revaluations implemented, and what were the outcomes? Revaluation proceeds have been either used by the central bank, as in the cases of Italy and Curacao and Saint Martin, or by the central government, as in South Africa, Lebanon, and Germany.
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They.cannot fix the price of gold. Let's see how all this washes out. I am ok with $8k Au at this point. I could take the rest of the month off.
If the dollar is backed by gold, then a set price isn't a price-fixing; it's a measurement of what the dollar is worth / is backed by.What do you think the $34 and $41 prices were back in the day? They very well can fix the price of Gold, especially on their own balance sheets. What they can not do is fix the Value of Gold.
Listening, right now, to Mike Ferris (Coffee & A Mike) with author Matt Bracken.Something is brewing. Trump is setting up MAGA to dominate finance for the next 20 years the same way LBJ did to the welfare class.
If the dollar is backed by gold, then a set price isn't a price-fixing; it's a measurement of what the dollar is worth / is backed by.
No, they changed the price, at the times they did - post-Civil War, and after Roosevelt's theft - they did that in a deliberate program to inflate the currency.It is price fixing... clearly the value of gold was changing during that time. But they had to change the price fix because the dollar was getting weaker.
No, they changed the price, at the times they did - post-Civil War, and after Roosevelt's theft - they did that in a deliberate program to inflate the currency.
Remember, they couldn't, in those days, just print or CTRL+P moar dollars. Dollars were backed. But Roosevelt's Socialist underlings had their plans. They needed MOAR.
So they increased the money supply by 65 percent or so, revaluing the confiscated gold from $20 to $35.
Neat trick. But it wasn't suppressing the price. It was STATING the worth of dollars - making them fall, so as to have moar, suddenly.
In currency debasement, the recipient of newly-created units, the FIRST recipient, enjoys the greatest benefit - prices in the economy have not yet adjusted to the new reality. Later recipients (through commerce) don't benefit, as inflation price-increases reflect the money-supply growth.
Today, the Banksters who are Fed members enjoy the benefits of CTRL+P. Back then, it was the New Dealers in the new Alphabet Agencies that got the most benefit.
And maybe it's the opposite.Maybe I can simplify. If they can change/set the price of something, its by definition price fixing.
They didn't need to sell bonds. In fact, in peacetime, I don't think there was a bond-selling program prior to the Raw Deal.They always need MOAR, correct. And they did it for that reason back then just as they are now. They need to sell more bonds.
Price is what a buyer will pay.Price is not Value... Just keep that in mind. It's Very common in Real estate, no one gets the difference between Cost and Value.
Price is what a buyer will pay.
ASKING price is nothing. It's an aspiration of the seller.
PAID price is the buyer's PERCEPTION of value. Which may or may not be accurate - and that works both ways, as anyone who's tried to sell a good used car at home, can attest.
It's not about PAYING OFF the debt.If they revalue gold to pay of the debt, would they not have to sell it? Cigar Lover states above that at $150k per once the U.S. stash would be worth $39 bil. But it would have to be converted to dollars to pay the debt. Who would buy @ $150k per ounce? The fed.
It's not about PAYING OFF the debt.If they revalue gold to pay of the debt, would they not have to sell it? Cigar Lover states above that at $150k per once the U.S. stash would be worth $39 bil. But it would have to be converted to dollars to pay the debt. Who would buy @ $150k per ounce? The fed.
If they revalue x45 to get to $150k, would that not devalue the dollar x45?
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