I thought…if they revalue gold and then sell it to generate cash..wouldnt that crash the price? JR made that observation. That would be a massive own goal.
It is obvious that central banks have been exchanging UST's for Gold as the worlds reserve currency since 2014. If gold were to be revalued why does it have to be the exchange rate today of $2900? When gold hit its ATH in 1980 what was the price of the Dow Jones Industrial average? Why not revalue to 1:1 to the DOW? Look at the growth of the money supply since then or just in the last 25 years, why not use the same metric to revalue gold? The US debt has had a CAGR of 8% since 2000 to date, why not use this CAGR since its last revaluation in 1974 as a metric to revalue gold? Why not use the market value that would be a percent of foreign held UST's, which averaged near 40% up through 1990 we are at 9% today? or why not revalue gold to a price such that the value of the 1384 tonnes of gold imported by China last year equaled the trillion dollar China trade surplus such that Chinese banks would be recapitalized, increase the wealth of the Chinese population allowing them to consume more of their own production? This would revalue gold to $22,000. Every $4000/oz increase to the revaluation of gold puts another $1Trillion in to the TGA. Adding $5+ Trillion to the TGA could be leveraged to bring on a true American industrial revolution. Seems to me that revaluing gold to a current and obviously manipulated price would be waste of a once in a multi-generation opportunity?
I thought…if they revalue gold and then sell it to generate cash..wouldnt that crash the price? JR made that observation. That would be a massive own goal.
It is obvious that central banks have been exchanging UST's for Gold as the worlds reserve currency since 2014. If gold were to be revalued why does it have to be the exchange rate today of $2900? When gold hit its ATH in 1980 what was the price of the Dow Jones Industrial average? Why not revalue to 1:1 to the DOW? Look at the growth of the money supply since then or just in the last 25 years, why not use the same metric to revalue gold? The US debt has had a CAGR of 8% since 2000 to date, why not use this CAGR since its last revaluation in 1974 as a metric to revalue gold? Why not use the market value that would be a percent of foreign held UST's, which averaged near 40% up through 1990 we are at 9% today? or why not revalue gold to a price such that the value of the 1384 tonnes of gold imported by China last year equaled the trillion dollar China trade surplus such that Chinese banks would be recapitalized, increase the wealth of the Chinese population allowing them to consume more of their own production? This would revalue gold to $22,000. Every $4000/oz increase to the revaluation of gold puts another $1Trillion in to the TGA. Adding $5+ Trillion to the TGA could be leveraged to bring on a true American industrial revolution. Seems to me that revaluing gold to a current and obviously manipulated price would be waste of a once in a multi-generation opportunity?