Allowing the Treasury to monetize our gold reserves increases the value or price of the gold. With the increased value, then the Treasury could buy Bitcoin/cryptocurrency and not increase the countries $37T deficit. So the purchase would be net zero.
> Revaluing gold to fund Bitcoin purchases could provide short-term fiscal relief and long-term strategic benefits,
but it introduces volatility and policy risks in the States. It would,
- Fiscal Boost and Debt Relief
- Inflation and Money Supply Effects, it would increase inflation as in theory there would be more money
circulating
- Market and Sector Impacts, markets may react negatively and PM's would rise initially but drop over time
while cryptocurrencies would increase in value
- Risks and Drawbacks, while the economy may see a short boost, the legal challenges would be major hurdles
especially with the USA moving from an old form of currency or wealth - PM's, to a new form of wealth.
> Globally,
- It would quicken the dollar from being the world trade currency ala BRICS
- Global crypto markets would boom benefiting countries already using Bitcoin type currency's as their reserve
- Countries within the EU have all their eggs in one basket called PM's. This could destabilize them.
This is all that I know and I am sure there folks here that know a whole bunch more +/-'s than my quick synopsis. With that written, the old PM standard is just that. An old way of doing business. Doesn't mean it is wrong though. To me it is a Hail Mary pass with only 5 seconds left in the game.
Last, with a 122% GDP/Debt ratio thanks to the politicians in D.C. from both sides of the aisle, something is going to break - it is only a waiting game as to when. A healthy country typically has a GDP/Debt ratio of 40-50%. In contrast, a healthy family's GDP/Debt ratio (Income/mortgage, credit card debt, tax burden, vehicle loan, etc.) is 25-35%.
Stay tuned,
