I know so little of this woodie...>>>
Seems like ti would be massively inflationary.
Exactly how do you reset the international Gold sales market? What if nobody will pay your new price or sell for the price you name, and they just keep trading at market prices, anyway?
You don't. I assume it would be reset at current market value.
You aren't buying or selling gold, just updating your balance sheet (or a loan application).
Are you saying, gold assets owned by weight in your account bought below current market price, would automatically be carried at current market value, like unrealized profit and taxed on the capital gain in asset value, though no transaction had taken place? Isn't buying low and holding at the bought price, the exact reason, people buy gold to keep? The plan to revalue by government order sounds shady to me.
All you would achieve is to lower the US insolvency from almost $40T to something closer to the national debt. Otherwise it wouldn't have any impact.
Except on the owners of Gold. What do they think of it? Sounds like a new tax on unrealized capital gains, to me, but I'm no tax man.
My reading of it is that the government would just change the valuation it uses for its own gold and not spend any of it, to make the 260 Million ounces have a value of say $3700 an ounce instead of the current $42 an ounce. That would increase the governments net worth by about 96T to around $100T. Subtract from that the National debt of $38T and the unfunded liabilities of roughly $75T, then I suppose you could argue that the government is only $13T in debt and run up another $25T in billionaire tax cuts.
True, if it is in fact what the plan is, but as you are aware, Nixon finished getting us off the gold stand, allowing the economy to float at market value of basically GNP/GDP and stablized againt national debt. Since we have seen it discussed to have a trillion dollar coin minted and take the to Fed, this could be nothing more than another smoke and mirrors bs move.
It is essentially like you writing yourself a check for a million dollars and then putting that you have a million dollars on your loan application. I really don't see it having much practical effect, but I also do not expect it to happen.
Oh, surely inflating assets is nothing Donnie would ever go along with for bank loan approvals.
Seems to me dumping almost a trillion dollars into the economy would make inflation jump. That's exactly what they critisize Joe Biden for doing during covid, but now suddenly it's not gonna be a problem?
That does not dump it into the economy. Sending out checks or giving unfunded benefits, not offset by resulting growth in GDP was the money dump, Trump and Biden signed off on, and free money dumped had the exact affect predicted by Keynesian economic, as prices rose to take advantage of all those buck traveling back to the top.
Maybe not directly but it's gonna end up there in short order.
Why?
No, I am not talking about MY account or about capital gain taxes. I am talking about the US Treasury's balance sheet being updated to present value.
The difference is that it is not borrowed money. Have any of you ever taken an accounting class?
