Posted on 08/05/2025 6:22:10 PM PDT by E. Pluribus Unum
On Friday the Federal Reserve Bank website published a “FED Notes” article by Colin Weiss regarding the theory and phenomenon of central banks revaluing their gold reserves in order to increase nominal wealth without increasing debt from the printing of debt-based fiat currencies.
“With public debt at high levels, some governments have begun to explore financing additional expenditures without raising taxes while also not increasing public debt outstanding. One possibility is using proceeds from valuation gains on gold reserves, as has been floated in the U.S. and Belgium recently,” the paper said.
The government of the U.S. holds 261.5 million troy ounces of gold, according to the paper. Currently the government proclaims a statutory price of $42.22 per troy ounce for the valuation of this precious metal, or about 1.25 percent the current market value per ounce as of the writing of this article – $3,379.40
Of note, the potential proceeds from a revaluation of U.S. gold reserves to current market price would equal about 3 percent of U.S. GDP, according to Figure 2 of the paper. The International Monetary Fund (IMF) reports U.S. GDP outlook for 2025 as $30.5 trillion while the World Bank reports the U.S. GDP for 2024 as $29.18 trillion.
In the last three decades, five countries have used proceeds from such valuation gains:
This note reviews the rare cases when countries used proceeds from valuation gains on gold and foreign exchange reserves. Over the past 30 years, only five countries have done so—Germany, Italy, Lebanon, Curacao and Saint Martin, and South Africa. What motivated the governments in these countries to use the proceeds from valuation changes...
(Excerpt) Read more at infowars.com ...
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A tough sell - since there is no gold in the vault.
That would cause an economic crisis.
It would be the dumbest thing the Fed could do. First, because it would take an act of Congress. And second…because the Fed doesn’t own the gold. The Treasury would have to do that.
The chances of this happening are between slim and none.
Revaluing gold reserves to market provides a one-time gain on the books and some balance sheet relief, possibly helping with confidence and providing accounting cover for offsetting prior losses or limited debt retirement. However, it does not generate real cash, nor does it reduce the government’s true debt service obligations. It is mostly an internal shuffle—moving assets and liabilities within the state—and cannot substitute for sound fiscal management or structural reforms. The improved debt optics are more a technical artifact than a tangible economic solution.
I want my $35 per ounce gold.
Just establish a “new dollar” guaranteed to be worth exactly 1/35 an ounce of gold.
I’d settle for Bitcoin price at the moment.
“First, because it would take an act of Congress. And second…because the Fed doesn’t own the gold. The Treasury would have to do that.”
Nixon suspended gold convertibility by Executive Order, “Proclamation 4074”.
AFAIK that can be reversed by another EO and doesn’t require an act of Congress.
The Fed didn’t own the gold before Nixon issued his EO, their lack of ownership is irrelevant. The Treasury has always owned it.
Reagan considered restoring gold convertibility during his administration. Robert Mundell, who helped foster supply side economics, had been writing in favor of it in National Review.
The price of gold is set by statute. The Congress set it. They are the only ones who can change it.
The chances of this happening are between slim and none.
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Ahhh
The narrative control cubicle speaks.
Time for you to collect your posting narrative reward doughnuts
Hear hear!
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