@kmax87 saidOk then, I'll sell my 10 ounces of gold to the government for $200K.
Treasury could then raise enough capital to retire enough T Bills and reduce overall debt to around 70% of GDP, which is very manageable for the US economy.
Where's the downside?
Then, I'll buy 10 more ounces on the open market for around $23K and keep the $177K profit.
Not bad for a day's work.
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@Paul-Martin saidThat's the thing. I don't know.
Not interested in YouTube, thanks.
But just realised you Aussie.
What's in it for Oz???
Either way revaluing Gold is more of an accounting strategy between the US Treasury and the Fed. The Fed holds gold certificates such that if Gold is revalued the increase in their certificates value allows them to release x trillions of dollars to the Treasury who then can mop up all these bonds to lower the national debt.
Its not like you with an ounce of Gold can suddenly go from 3k to 20k. We are talking about a closed loop of trade between Treasury and the Fed. It might be like 1933 all over again as when FDR revalued Gold from $20.67 an ounce to $35 which helped pave the way of the new deal. FDR also made possession of Gold over 5 ounces illegal and everyone's Gold was confiscated, prior to the revaluation.
Will it make America more able to do business and will the rest of the world benefit? Not sure given Trump's insular approach to global affairs and America's obligation as world hegemon.
