U.S. Debt Crisis: Will 8,133 Tons of Gold Repay Debt?
Here's the translation of the provided text into English: "Another shocking piece of news!
Amidst the U.S. debt crisis, the United States is actually considering repaying its debts with gold and restoring the gold standard.
Is the international monetary order really about to be reset?
The current situation in the United States can only be described as beset with internal strife and external threats.
Internally, the U.S. debt has reached a staggering 33.7 trillion dollars; additionally, with the continuously rising interest rates, the interest alone is enough to give the U.S. government a serious headache.
It can be said that this enormous debt will inevitably lead to the United States being unable to repay these debts.
Externally, countries are now selling off U.S. debt and increasing their gold holdings.
It can be said that the world is stockpiling gold at the fastest pace in 55 years and selling off U.S. debt at the fastest rate in 9 years, which is further undermining the U.S. debt collapse.
In light of the current situation in the United States, Congressman Mooney has once again urged the United States to return to the gold-based gold standard system.
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This is Mooney's fifth proposal since 2018.
Subsequently, two other congressmen, Biggs and Gosar, also proposed to Congress to restore the gold standard.
Their reasoning is that if the United States does not maintain the status of the dollar, then the collapse of the dollar will outpace the decline of the nation.
Although restoring the gold standard would reduce inflation to some extent, restore the value of the dollar and its international status, and also reduce the scale of U.S. debt, would the U.S. government really agree?
First of all, the United States currently has about 8,133 tons of gold reserves, which, even calculated at the gold price in January 2023, is only equivalent to 480 billion dollars, which is insignificant in front of the 33 trillion U.S. debt!
In other words, if the gold standard were to be restored, this amount of gold reserves would not even be enough to fill the United States' teeth.
Secondly, if the United States were to restore the gold standard, it would mean that the United States would no longer be able to solve domestic crises by recklessly printing money.
The U.S. government is now continuously raising the debt ceiling, so what would happen if the U.S. government runs out of money again?
Would they print gold?
It can be said that if the United States were to restore the gold standard, it would be equivalent to the United States laying down its sickle.
Furthermore, the exact amount of gold reserves in the Federal Reserve's vaults is a mystery.
If the gold standard were to be restored, would central banks still store their gold with the Federal Reserve?
Gold has already transformed from an investment to a currency, and everyone should hurry back to retrieve it.
Speaking of which, the Federal Reserve has always been tight-lipped about the specific data on gold transactions and storage.
This inevitably leads to suspicion about how much gold the United States has secretly swallowed.
To take a step back, it's not certain that the United States' own reserves of 8,133 tons of gold are accurate.
If the gold standard were to be restored at this time, wouldn't it be like shooting oneself in the foot?
Considering these three points, the U.S. government is a thousand times unwilling to restore the gold standard.
Speaking of this, we cannot say that Mooney is wrong, but Mooney is not the U.S. government, nor is he the Federal Reserve; he does not understand how deep the water is here.
Finally, I will conclude with a quote from American financial historian Grant: Regardless of whether the United States is willing or not, the 50-year currency history system of the dollar will ultimately fail, and gold will eventually shine brightly."
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