It's not unprecedented The President has the authority to set the price of America’s gold. Roosevelt did this in 1934 after America went off the gold standard. At the time, the U.S. said the price of gold was worth $20.67 a fine ounce. Roosevelt said it was actually worth $35, and so it was. He created $2,819,000,000. It was a book-keeping trick, but one that allowed him to invest in the World Bank and International Monetary Fund. About a billion of it sat on the books and was used to avert the country’s first debt ceiling crisis in 1953.(gizmodo.com) Suggestions are that Trump and Musk will use their travel to Ft. Knox to announce a reevaluation of the price of gold. When Trump and Musk visit Fort Knox, they’ll find 5,000 tons of gold sitting in gold bars. Gold that the U.S. currently values at $42 an ounce. Gold that would be worth $2,800 an ounce on the open market. With the wave of a hand, Trump could change the price of U.S. gold and inject hundreds of billions of dollars into the U.S. Treasury’s balance sheet. He has the authority; the Supreme Court says so. Roosevelt caused a constitutional crisis when he upped the price of gold in the 1930s. SCOTUS ruled in his favor in Perry v. United States. Trump may be served by the precedent. (gizmodo.com) So what could be the plan? And what to do with an $800 billion dollar windfall? Why, buy Bitcoin, of course. The idea to change the price of gold and use the cash to start a Strategic Bitcoin Reserve has been around for a while. Sen. Cynthia Lummis (R-WY) introduced a bill into Congress in the summer of last year called the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act. Lummis’ Act would have the Treasury issue new gold certificates based on the current market price of gold and then use those certificates to buy up Bitcoins. (gizmodo.com) One may wonder how this affects the USD value and impacts other countries' gold reserves.
President Trump can do 'wonders'. He can change the North-South pole polarity, make the Sun rises from West to East .... He is the day trader's dream, and investor's nightmare.
no, that is change the value of usd, not gold. if cheetos wants to sell fort knox golds, the rest of the world is happy to buy them all, give back all the printed usd in their reserves in exchange of gold.
Yes, Fort Knox Kentucky has the largest gold reserves in the United States. There are others like West Point and Denver with very large gold reserves too that total together could change a spread from 11 billion to 760 billion worth...overnight...with the Federal Reserve Bank of New York acts as the custodian by federal law. It's the Department of Treasury that controls our Gold. Instead of messing with our gold...Crypto folks in the United States could just create their own stable mining reserves in the United States as other countries have done. Yet, DOGE will run into much more problems trying to mess with the Federal Reserve Bank of New York as they have tried to do with the Department of Treasury. By the way, for the United States to continue in its quest to dominate Crypto and to be the king of Crypto...we need energy (electricity...pc processing power needed to build the blockchain)...lots of it. Hmmm...what nearby country has lots of energy (electricity) resources ??? wrbtrader
Before Breton Woods US used gold as a means to borrow money. FDR seized all non-jewelry Gold from the public and revalued Gold upwards so he could devalue the USD. His seizure of Gold from the public was deemed illegal after WWII just like his forced internment camps. So much for liberty by the Democrats.
You don't understand how markets work at all. Funny how you keep going back to the Great Depression as your economic model.
You don't seem to understand what a media reference is. As for understanding how markets work, I'd be fascinated to read your explanation because it's been a challenge lately for me to grasp how this market works...
I hope so..... with all the antics and disruptive activities that may be on the event horizon, please keep up the "Simpsons Episode" where the whole world gets to laugh at the end ... Akuma
Revaluing U.S. gold reserves from $42 to market rate would create a massive one-time paper windfall, but I’m skeptical about how that would translate into actual economic benefit without triggering broader market distrust or inflationary pressure. Plus, shifting from gold to Bitcoin as a "strategic reserve" raises more questions than it answers in terms of stability and international confidence in the dollar. Still, the historical precedent with Roosevelt does show how much leeway a President could theoretically exercise in extraordinary times.