I think the downvotes are mostly due to the gold thing. it sounds...deranged

iamnothere 27 minutes ago | parent | next [-]

It’s all verifiable. We haven’t revalued US gold reserves since 1973. If gold were worth, say, $8k/oz, and were revalued from the current $42/oz set in 1973, that would instantly add almost 2 trillion on paper to US reserves. All it’s doing is acknowledging the current market price for accounting purposes.

FDR used a similar trick to devalue the dollar, allowing him to expand the money supply. Of course this was when the value of the dollar depended on the value of gold, so the motivation and the effects were different.

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talon8635 29 minutes ago | parent | prev [-]

Or the deficits don’t matter thing lol

	▲	iamnothere 17 minutes ago \| parent [-]
		Domestically held deficits are nothing more than promises to pay future interest to US bondholders. Foreign deficits are another story, but most of our “debt” is domestic. Domestic deficits mostly matter in that they represent money that is “tied up” rather than circulating within the economy for more productive use. However, it’s more complicated since 20% of the “owners” are internal to the government, such as Social Security.