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47 sats \ 5 replies \ @Undisciplined 13 Sep \ on: Federal Reserve: End Of QT On The Horizon? What About Gold? econ

If you don't already know this, prepare yourself for almost unbelievable government stupidity. By law, they can only redeem their gold certificates for $42/oz.

If they change that to market value, they immediately get an almost 20x on their gold holdings.

33 sats \ 4 replies \ @TomK OP 13 Sep

I didn't know this. Thank You.

47 sats \ 3 replies \ @Undisciplined 13 Sep

I had read it a long time ago and forgotten about it. Then the Mises guys were talking about it in a discussion about why the gold holdings are essentially useless for paying down the debt, because it can only be redeemed at that price.

34 sats \ 2 replies \ @TomK OP 13 Sep

And what if they change the law? Law is just a funny paper nowadays

47 sats \ 1 reply \ @Undisciplined 13 Sep

I don't know how easy or difficult that would be. The issue is that they have gold-backed certificates that are redeemable for a specific dollar value, rather than a specific quantity of gold.

They might have to essentially seize the gold from whoever owns it, which they could obviously do.

35 sats \ 0 replies \ @TomK OP 13 Sep

Ah, OK. So that's the way to do it. I don't see any problems.