The US has the largest gold reserve. But repricing it to $1 trillion 'would backfire in a big way' - Fortune
The US has the largest gold reserve. But repricing it to $1 trillion 'would backfire in a big way' - Fortune
Source: Fortune
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DW NOTE
The US Treasury values its 261.5 million ounces of gold at $42.22 per ounce — a statutory price fixed in 1973. Market price today: $4,008. That's a $1 trillion revaluation sitting on the ledger as political temptation. The reason it would backfire is simple: repricing an asset you cannot sell does not reduce your liabilities. It just announces that your balance sheet is a work of fiction and your currency is one vote away from being backed by nothing but revised accounting standards.