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“Weird Gold Trick” Could End Debt Ceiling Showdown
Daily Reckoning ^ | 9 May 2023 | James Rickards

Posted on 05/13/2023 12:01:03 PM PDT by arthurus

Right now, the Fed’s gold certificate values gold at $42.22 an ounce. That’s obviously not anywhere near the market price of gold, which, again, is about $2,042 an ounce.

Now, the Treasury could issue the Fed a new gold certificate valuing the 8,000 tons of Treasury gold at $2,042 an ounce. They could take today’s market price of $2,042, subtract the official $42.22 price and multiply the difference by 8,000 tons.

(Excerpt) Read more at dailyreckoning.com ...


TOPICS: Business/Economy
KEYWORDS: debtlimit; default; inflation
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Looks to me like Instant Inflation
1 posted on 05/13/2023 12:01:03 PM PDT by arthurus
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To: arthurus

all this so you neoCONs could feed your blood lust in Ukraine.


2 posted on 05/13/2023 12:05:30 PM PDT by imabadboy99
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To: arthurus

That’s $511,943,680,000.00.

Half a trillion dollars.

Good for a pretty good party.


3 posted on 05/13/2023 12:08:27 PM PDT by one guy in new jersey
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To: arthurus

Just one weird trick will save us!


4 posted on 05/13/2023 12:09:20 PM PDT by FamiliarFace (I got my own way of livin' But everything gets done With a southern accent Where I come from. TP)
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To: arthurus

Not sure it’s inflationary at all. Half a trillion bucket against the need is about three months. But wouldn’t it be deflationary as this debt would be issued at a fair market value against a tangible. As our currency currently floats on the full faith and credit but is not pegged to a commodity, the fed can print money with zero collateral. That is inflationary. This would take 1/60th of our debt and drop it on a gold standard. That becomes quite a hard ceiling for that portion of the debt.


5 posted on 05/13/2023 12:10:55 PM PDT by gas_dr (Conditions of Socratic debate: Intelligence, Candor, and Good Will)
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To: imabadboy99

(2042-42.22)*8000 tons*2000 pounds per ton*16 ounces per pound=$511,943,680,000.00.


6 posted on 05/13/2023 12:11:56 PM PDT by one guy in new jersey
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To: arthurus
> “Weird Gold Trick” Could End Debt Ceiling Showdown <


7 posted on 05/13/2023 12:13:14 PM PDT by Leaning Right (The steal is real.)
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To: arthurus
"In other words,the Treasury could issue the Fed a gold certificate for the 8,000 tons in Fort Knox at $2,042 an ounce and tell the Fed, “Give us the difference over $42 an ounce."

Ah....That's cute....the author believes the Treasure still has 8000 tons of gold in Ft.Knox.....

Obama stole that long ago, in his effort to undermine America.

Do an audit....Prove me wrong!

8 posted on 05/13/2023 12:13:38 PM PDT by G Larry ( DEI = Division + Erroneous Indoctrination)
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To: imabadboy99

The amount sent to Ukraine is an accounting error relative to a $31T debt. Gimme a break. And I say that having zero dog in the fight as to if we should or shouldn’t be in Ukraine. Personally i believe Russian conquest is a bad thing for the west. But fighting a puppet war that consumes resources is likewise a lousy idea.

The issues are not as simple as your brief neocon blood lust slur conveys. Your interpretation of the fundamentals of commodity backed currency combine with a pretty obvious political statement puts your stance a little at odds with standard conservatism.


9 posted on 05/13/2023 12:15:32 PM PDT by gas_dr (Conditions of Socratic debate: Intelligence, Candor, and Good Will)
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To: arthurus

Anyone actually see that 8000 tons of gold lately? Maybe check
one of Joe Biden’s garages.


10 posted on 05/13/2023 12:16:51 PM PDT by Brooklyn Attitude (I went to bed on November 3rd 2020 and woke up in 1984.)
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To: FamiliarFace

Aren’t weird tricks generally synonymous with increased schlong length? Asking. For a friend. 🤪


11 posted on 05/13/2023 12:17:32 PM PDT by gas_dr (Conditions of Socratic debate: Intelligence, Candor, and Good Will)
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To: one guy in new jersey

(2042-42.22)*8000 tons*2000 pounds per ton*16 ounces per pound=$511,943,680,000.00.

$$$$$$$$$$$$$$$$$$$$

Not to pick nits, and I may be wrong because I don’t know exactly how gold is measured, but isn’t there something about gold being measured in troy ounces (avoirdupois?), so there’s only 12 troy ounces to a pound?


12 posted on 05/13/2023 12:18:09 PM PDT by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart, and lean not on your own understanding")
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To: gas_dr

Don’t forget to add in the cost of G W MORON’s neoCON war in Iraq and the cost to maintain global empire.


13 posted on 05/13/2023 12:18:35 PM PDT by imabadboy99
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To: Eccl 10:2

I kinda answered my own question:

“An avoirdupois ounce weighs 28.3495 grams, while a troy ounce weighs 31.1035 grams. It’s believed that this is a throwback to the historic importance of precious metals in trade markets, and merchants’ need to have a standard unit of weight for gold, silver, gemstones and the like.”

$$$$$$$$$$$$$$$$$$$$$$

Is not gold usually measured in troy ounces?

If I buy an ounce of gold from a dealer, am I getting an avoirdupois ounce or a troy ounce?


14 posted on 05/13/2023 12:22:16 PM PDT by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart, and lean not on your own understanding")
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To: arthurus

I only have a ton of gold, and no it has not been audited and no one has seen it, but can I get a secured loan?


15 posted on 05/13/2023 12:24:57 PM PDT by algore
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To: arthurus

I have a US $1 silver certificate from 1957.

It looks like a dollar bill, or should I say a dollar bill looks like it.

Paper certificates of federally held metal were once common.


16 posted on 05/13/2023 12:26:48 PM PDT by Brian Griffin
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To: Eccl 10:2

Avoirdupois is 16 oz/lb. Precious metals are weighed in troy ounces.

A troy ounce is 31.1 grams
An AV ounce is 28.35 grams (rounded)

1 ton = 29166.67 troy ounces.

8000 tons = 233,333,360 troy ounces

233,333,360 troy ounces x $2,042/ozt =

$476,466,721,120


17 posted on 05/13/2023 12:27:06 PM PDT by mn-bush-man
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To: arthurus

The magical minds of Joe Biden PLUS Sen. Fetterman will solve this.


18 posted on 05/13/2023 12:27:20 PM PDT by Mark (DONATE ONCE every 3 months-is that a big deal?)
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To: Eccl 10:2

Thx.

1 Troy Ounce = 1.097143 Ounces.

So maybe the party can be a little bigger.

Or last a little longer.


19 posted on 05/13/2023 12:28:10 PM PDT by one guy in new jersey
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To: one guy in new jersey

Wouldn’t you use “Troy ounces”?


20 posted on 05/13/2023 12:28:50 PM PDT by Vermont Lt
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