@willdenyer That would bring debt-to-GDP down to 90%. Going beyond gets tricky. Maybe a way to sterilize additional debt at a higher gold reset would be to establish a special fund with the proceeds (social security? Infrastructure development via gov. guarantees?). Gold $80k = 50% debt/GDP.
@willdenyer 1) Use the proceeds to buy all securities in Fed balance sheet (~$6.6 trillion), 2) increase reserve requirement to 20% on bank deposits to neutralize another ~$3.6 trillion of monetary expansion. That can be done with gold revalued at $40k to reduce 30% of government debt.
@DarioCpx You should also mention that the SHFE closed that day at 2:00AM EST, and that there was no night trading session that day due to holiday schedule. The night session would have operated until 1:30PM EST.
@KingKong9888@judyshel In 1934-1935, the US defaulted on its obligation to honor debt payments in gold (see Title 31 U.S. Code § 5118 - Gold clauses and consent to sue). Good luck believing this will not happen again.
@KingKong9888 Gold revalued at $60k would allow US to retire 40% of debt and bring debt/GDP down to 77% (not considering impact this would have in lowering rates both from reduced supply of Treasuries and improved sovereign risk). At $116k would allow retiring 80% of debt and debt/GDP to 26%.
@TFMetals Yup. Potential breakout to $85.00 (smack on the 133% fib). Check out Platinum as well. It’s been on both a long (1999) and short (2020) pennant, and it seems just starting to break out too.
@NorthstarCharts@KinesisMonetary Gold above it’s 200 DMA this long seems extended within recent time frame, but if the 70’s are any indication of how gold can behave during major global monetary resets, it can be way higher above the 200 DMA and sustain it for quite a long time.
@maneco1964 Following this closely too, after listening recently to Rafi Farber mention REPO volume was almost equal to reserve balances. This got me curious so I charted both (see chart bellow). It shows the plumbing of the interbank liquidity market is under extreme stress. Expect more QE.
@maneco1964 Gold making a head-and-shoulder pattern this week. Do you see it falling to the 50 day moving average (which would coincidentally bring gold to silver ratio back down to the 100 day moving average)?
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