Posted on 11/09/2024 7:41:48 AM PST by delta7
In an interview this week with Mark Moss of Market Disruptors that is posted at YouTube, Luke Gromen of the Forest for the Trees financial letter notes something about the U.S. Treasury Department and Federal Reserve that has also been contemplated by other governments and central banks.
The U.S. Treasury Department maintains what is essentially its own gold revaluation account at the Fed, in which U.S. gold reserves could be revalued to create any amount of U.S. dollars for the Treasury to draw upon.
50 Utah Goldback - Libertas, 1/20th Troy Oz 24K Gold-Backed Bill 50 Utah Goldback - Libertas, 1/20th Troy Oz 24K Gold-Backed Bill Price & Buy The U.S. gold revaluation account is called the Gold Certificate Account and is described on Page 12 of the April edition of the Fed's Financial Accounting Manual for Federal Reserve Banks.
The manual says:
"The Secretary of the Treasury is authorized to issue gold certificates to the Reserve Banks to monetize gold held by the U.S. Department of the Treasury. At any time, Treasury may reacquire the gold certificates by demonetizing the gold.
"Treasury maintains an account with the [Federal Reserve's] Board of Governors entitled 'Gold Certificate Fund / Board of Governors of the FR System.' When the Treasury monetizes gold, it credits this account in return for deposit credit at the Federal Reserve Bank of New York (FRBNY). When demonetizing gold, Treasury decreases the account and authorizes the FRBNY to charge its deposit account.
"The offsetting entry in each case on FRBNY's books is made to the Gold Certificate Account and the U.S. Treasury General Account. The FRBNY accounting staff sends an advice of these entries to the [Federal Reserve] Board [of Governors].
"Also, whenever the official price of gold is changed, Treasury adjusts the account and, simultaneously, the deposit account."
Revaluation of government gold reserves to create money isn't a new mechanism. It's a mechanism whose last exercise in the United States is so old that few people are aware of it -- President Franklin D. Roosevelt's revaluation of gold from $20.67 per ounce to $35 per ounce in 1934, an event whose facilitating money creation was well described a few months ago by Money Metals News Service writer Mike Maharrey.
Hot 1 oz Gold Bar (Brand our Choice) 1 oz Gold Bar (Brand our Choice) Price & Buy Revaluation of the U.S. gold reserve to facilitate money creation was mentioned, rather remarkably, by a former member of the Fed's Board of Governors, Lyle Gramley, during an interview with Business News Network in Canada in December 2008.
It was also examined at length by the U.S. economists Paul Brodsky and Lee Quaintance in 2012.
In his discussion this week with Market Disruptors' Moss, Gromen remarks that a substantial official U.S. revaluation of gold -- say, to $20,000 per ounce or more -- might enable the creation of trillions of dollars for the U.S. government to use to repay enough of its debt to make the country's ratio of debt to gross national product appear more plausible and sustainable.
Moss responds that such a revaluation likely would generate huge inflation, but Gromen says that only huge inflation can diminish the debt problem and that other countries have survived and adjusted to such periods.
Of course in the end gold revaluation, like the recent proposal for the Treasury to mint platinum coins with trillion-dollar denominations and turn them into cash at the Fed, is just legerdemain, accounting trickery to rationalize creation of money far out of proportion to national economic production.
But that governments and central banks are so prepared for gold revaluation may be a reminder that the metal remains not just money but also the secret knowledge of the financial universe -- and that the nuttiest gold bugs of all are central bankers and the elected officials whose bidding they do, creating a world financial system so crazy that only gold may be able to save it.
Prepare accordingly.
So this means gold would rise to $10,000 per ounce -— My take at least. Silver would rise too. Maybe $100 per ounce
More for the doubting Thomas’s ( Gators).
“Central bank gold purchases indicate revaluation plans, new monetary paradigm. Will the U.S. join it?….”
My take at least. Silver would rise too. Maybe $100 per ounce
—————
The top legends in the finance industry are all in the same ballpark. $300 silver, $5,000 plus Gold without the world turning to GRA’s…..much higher when their quasi gold backed scheme is instated.
Keep in mind the silver/ gold ratio is now 80:1, the ratio in our earth is 15:1. Silver has a long way to go.
Do realize the US population is poorly prepared for a gold revaluation. The top two countries with the highest PRIVATE gold ownership is China and India.
“ Private holdings
[11] [12]
Rank Name Type Gold holdings
(in tonnes)
1 China Private 31,000[13]
2 India Private 30,000[14]”
Is it any coincidence they are Brics members? These two nation’s citizens will benefit the most from a worldwide Gold revaluation…..brings to mind “ So the last will be first, and the first will be last”.
Silver has been a dog for 40 years. I bought some in 1983 for 16 dollars per ounce and held onto it. Gold has done better, and has always been considered a reserve currency for Central Banks everywhere.
Silver is an industrial metal these days. It has all kinds of purposes in hi-tech and photo-voltaics. Its role as a precious metal is quite limited. Only preppers and dreamers think it is a precious metal. Though I admit that if the SHTF....... All those stashes of silver dimes and quarters will be able to buy you mucho. Like a silver dollar to fill up a 10 gallon tank with gasoline.
A silver dollar can do that right now.
Yeah of course Russia and China have lots of AU reserves and lead the BRICs in wanting to give gold a much larger role in international trade.
If BRICs economic influence grows greatly. Then the US and Western nations might be forced to join the BRICs. In bring gold into world trade and the currency exchanges.
“Do realize the US population is poorly prepared for a gold revaluation. The top two countries with the highest PRIVATE gold ownership is China and India.”
Thanks, Now I know. The Arab oil nations. Their kings and citizens also love that “barbarous relic”, that snooty Western super-bankers have called gold.
Probably not per capita. A number of sources cite India as number one.
“A silver dollar can do that right now.”
I just checked at APMEX! You are right. Lowest kind of sort of junk silver dollars go for about $30. So this equals 10 gallons of gasoline today!
A silver dollar can do that right now.
But I’m not gonna let ‘em catch me, no
Not gonna let ‘em catch the midnight rider
And so wouldn’t the price of just about everything else.
They key is the eliminate the debt. That is the only way to get out of the hole we are in.
They key is the eliminate the debt. That is the only way to get out of the hole we are in.
————
A true statement. Keep in mind the US leads the world in sovereign debt, however the world is in a debt spiral. The world’s total debt is estimated at $300-317 trillion. Mathematically impossible to pay off.
“In the second quarter of 2023, global debt was recorded as $307 trillion, largely driven by developed countries like the US, Japan, the UK and France...”
https://www.weforum.org/stories/2023/12/what-is-global-debt-why-high/
Hence the BIS, IMF, ( world’s financial organizations), etc. push for a “ Reset”. The upcoming crisis will global…..and historic.
When? Who knows, but make no mistake, it’s coming.
delta7 : "With the Brics announcement of a 40 percent gold backed payment system, the entire world’s Central Banks buying historic amounts of Gold,
and the Fed and Treasury establishing GRA’s indicates some big changes ahead."
" Prepare accordingly."
(From the article re: monetary policy and gold): "It was also examined at length by the U.S. economists Paul Brodsky and Lee Quaintance in 2012."
" In his discussion this week with Market Disruptors' Moss, Gromen remarks that a substantial official U.S. revaluation of gold -- say, to $20,000 per ounce or more
-- might enable the creation of trillions of dollars for the U.S. government to use to repay enough of its debt
to make the country's ratio of debt to gross national product appear more plausible and sustainable."
" Moss responds that such a revaluation likely would generate huge inflation, but Gromen says that only huge inflation can diminish the debt problem
and that other countries have survived and adjusted to such periods."
"Of course in the end gold revaluation, like the recent proposal for the Treasury to mint platinum coins with trillion-dollar denominations and turn them into cash at the Fed,
is just legerdemain, accounting trickery to rationalize creation of money far out of proportion to national economic production."
"But that governments and central banks are so prepared for gold revaluation may be a reminder that the metal remains not just money
but also the secret knowledge of the financial universe -- and that the nuttiest gold bugs of all are central bankers and the elected officials whose bidding they do,
creating a world financial system so crazy that only gold may be able to save it."
Whatever they do with changing the monetary system from the current hopium system, they are WAY past time for a real inventory (of the gold) , both in Ft. Knox and elsewhere.
Many think it is doubtful we have 8,000 tons…regardless, Trump could get the EPA out of the way as they have greatly reduced , even shut down a lot of US mining operations.
As with oil, drill, drill, drill…make mining a national security interest, drop all regulations, we have many tons sitting both discovered and undiscovered.
Question is just how quickly to get it out of the ground, the average time a shutdown mine takes to get back up and running is three years.
“The top legends in the finance industry are all in the same ballpark. $300 silver, $5,000 plus Gold”
Armstrong, the TOP legend, is bearish on gold after calling the pre-election high.
“Keep in mind the silver/ gold ratio is now 80:1, the ratio in our earth is 15:1. Silver has a long way to go.”
Silver will never trade at the same price as gold.
“When? Who knows, but make no mistake, it’s coming.”
I thought you said it was coming next year?
“As with oil, drill, drill, drill”
We don’t drill for gold. We do, however do drill assays to locate gold ores.
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