Conservative
Type 40
The link explains why the fed should not mark its gold to market, it doesn't explain why in particular it should mark it at 42 an oz, as opposed to 35, or 64, or 123 an oz. Neither have you. Clearly there are infinity - 2 options available other than mark-to-market or $42.22. Why $42 for ever? 100 years from now when $42 is worth 42 cents today and the Fed's gold is valued at 4000 times less than its market value - it should still mark it at 42? That's a bit retarded don't you think?
Yes, post #34 does explain it, dumb ass.
For starters, marking the Treasury's gold to market would create a huge headache of an ever-fluctuating balance sheet as the price of gold rises and falls, pointed out Dimitri Papadimitriou, president of the Levy Economics Institute at Bard College. Plus, if gold tumbled, we'd lose our hypothetical wealth as quickly as we'd accrued it.
Raising the value of the Treasury's gold stockpile would have an inflationary effect, too, which is the last thing the Federal Reserve wants right now.