Posted on 10/19/2018 5:45:42 AM PDT by ZeroToHero
Russia has continued to get rid of US Treasury bonds as the country's share in American debt is arriving close to zero. Russia was one of the biggest holders of US debt with a $180 billion investment.
(Excerpt) Read more at nnettle.com ...
Who’d they get rid of it to?
Probably sell on the open market - so other governments, pension funds, bond funds, banks, etc
Russia is one of a few countries that maintain a foreign account surplus...and they’ve been stacking gold for a long time.
I have a suspicion that the U.S. doesn’t have much gold in store, but nobody will admit it due to the negative impact on markets.
I’m curious if anyone’s floated the idea of bringing back the gold standard to POTUS?
They sold it to themselves. Out of government FX reserves, and into personal accounts of Putin and Pals in Switzerland.
Yes, if there’s one thing Trump would love it’s tight money (ha ha).
I understand what you mean, but it would be beneficial for the economy long term, no? I’m not an economist. I’m just genuinely curious if it would be beneficial. Trump seems to be doing all of the right things for the economy, and I understood that the economy was more stable under the gold standard. Am I misinformed?
Russians aren’t stupid. In a rising interest rate environment T bonds get hurt badly. There is little doubt that they are selling at a loss as it is.
Why is the question. Was it for economical protection or maybe war preparation?
Wrong the biggest holders of American debt are Americans.
There was a time when the wealth of nations was in gold and gems. That’s not the case in the modern economy. The wealth of our nation is in our economic activity. I’m not for printing money just because we can, but going back to a gold standard where we stockpile physical, non-productive assets doesn’t make sense either.
I’d simply like to see fiscal restraint and living within the bounds of Constitutional authority. Do that—and repeal the 16th & 17th Amendments—and I’ll be happy.
Bingo.
Fiat currency has led to the eventual economic down fall of every nation since its inception.
“There was a time when the wealth of nations was in gold and gems. That’s not the case in the modern economy. The wealth of our nation is in our economic activity. I’m not for printing money just because we can, but going back to a gold standard where we stockpile physical, non-productive assets doesn’t make sense either.”
Nice to hear from someone making sense. Those wanting to go back to the gold standard are deluding themselves. Paper currency as a trading mechanism is so logical. If a country prints too much or has a trade imbalance, the value of the currency goes down in relation to other currencies. In fact, the US currency should be worth much less because of trade deficits. However, the USD is the reserve currency of the world, so somewhat separated from fundamentals.
BTW, if the US ever attempted to go back to the gold standard, do you know what that would mean for taxpayers? HUGE tax increases. The government would need to buy gold to back $3.9 trillion of currency in circulation.
I’m guessing: American taxpayers.
All I can say is ‘thank God’ Hillary didn’t win. Trump will be able to navigate the shoals... Hillary would be taking kickbacks and doing nothing.
Prices were more stable, the economy was not. The 19th century featured very regular crashes, panics and crises on the gold standard. And with no way to cushion the fallout because there was no fiat money. Most of the 19th century, aside from the Civil War years, the US was in deflation.
The open market.
Soon, when China and Russia start trading in gold you will see more US dollars being sold. They will no longer be needed as the reserve currency for bilateral trade.
ThATS not good for us....
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