If the Gov re prices gold like that do we really think they will use all that new cash to pay down the debt, LOL? And if they don't hyper inflation will be an understatement.
WTF? If the fed bits 20,000 per ounce of gold, won't anybody owning gold want to sell their gold for 20,000? Won't the Fed end up owning all the gold in the world in exchange for which the world will be given dollars printed out of thin air which will induce a hyperinflation?
No, the Fed is not going to pay anyone 20,000 for their gold coins or bars. The Fed doesn't even have any gold and doesn't buy any gold. Read the article again. They would pay the US Treasury for gold certificates (paper certificates redeemable for gold) at the price that the treasury values their official gold holdings. With no chance that they would ever redeem those certificates.
This manual is not new and is published every year on the Fed's website. Here is the one published in 2017 (https://www.scribd.com/document/340597366/Accounting-Manual-Federal-Reserve-Banks) and it includes the exact same section on gold certificates. So let's not turn this into some brand new conspiracy theory that they are just thinking this up now.
If the Gov re prices gold like that do we really think they will use all that new cash to pay down the debt, LOL? And if they don't hyper inflation will be an understatement.
WTF? If the fed bits 20,000 per ounce of gold, won't anybody owning gold want to sell their gold for 20,000? Won't the Fed end up owning all the gold in the world in exchange for which the world will be given dollars printed out of thin air which will induce a hyperinflation?
No, the Fed is not going to pay anyone 20,000 for their gold coins or bars. The Fed doesn't even have any gold and doesn't buy any gold. Read the article again. They would pay the US Treasury for gold certificates (paper certificates redeemable for gold) at the price that the treasury values their official gold holdings. With no chance that they would ever redeem those certificates.
Aha! Thanks Dave. I'm still learning about all this stuff. Appreciate your explanation
This manual is not new and is published every year on the Fed's website. Here is the one published in 2017 (https://www.scribd.com/document/340597366/Accounting-Manual-Federal-Reserve-Banks) and it includes the exact same section on gold certificates. So let's not turn this into some brand new conspiracy theory that they are just thinking this up now.
Interesting!!! Thanks Dave.