@ Aubuy
Like I have to tell you that gold is worth far more than $1310 or so / oz...
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Tracking one of FOFOA's ideas, "let's say" [begin thought experiment] that really scary times are upon us. Our debts, internal
and external become too much for our .gov to cope with. "Let's say" that China decides it only wants real stuff (not Treasuries) with all of those dollars, so they might want our farmland, oil companies, etc. The US$ becomes rejected...
FOFOA thinks that one route out of such a mess is by a Really Big Buyer (and Seller, but the Buyer matters more) is for the Treasury to just put out the call
to buy any and all gold at an arbitrarily high price, say $10,000 per oz. Would seller of gold appear? Yes. But, how many? FOFOA's guess (and I concur, though he knows his gold far better than lil ol moi) is that they would not get too much...
But what would also happen is that worldwide you would see a new floor for the price of gold. And the price would not hang around 10k. He expects to see gold in the range of $25,000 - $100,000 per oz! After all, the Treasury could just tell the Federal Reserve to print up whatever FRNs they needed to buy gold at 10k! No problem!
So, "let's say" that the price of gold winds up at $20,000 per oz. Then those 8100 tonnes are worth some $5 trillion. Much better, no? But, then you would have to ask yourself:
Would I trade our 8100 tonnes of gold just to cancel our debts?
Well, would you?
I sure as hell would not!
[end thought experiment]
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