FedRes Openly Discusses Gold Revaluation

• FedRes Openly Discusses Gold Revaluation
  by VBL, https://www.zerohedge.com/
  Global Cases of Gold-Based Fiscal Relief
  Contents
  1. TL DR:
  2. Global Cases of Gold-Based Fiscal Relief
  3. Revaluation: Accounting Mechanics and Policy Rationale
  4. Use Case 1: Central Bank Operations – Italy and Curacao & Saint Martin
  5. Use Case 2: Central Government Fiscal Relief – South Africa, Lebanon, Germany
  6. Observations and Outcomes
  7. Relevance to the US
  8. Conclusion
  9. Report Excerpts making our case

  TL/DR
  They believe it’s a quick fiscal fix; But it should not be ignored based on past; If the US were to consider doing it, it must be done transparently; Without stating as much, in our opinion, they are against it; The Fed is getting defensive as an institution.
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  Introduction: Context and U.S. Proposal
  Late last week, The Fed published a lengthy piece assessing the potential benefits of Gold Revaluation in a piece titled: Official Reserve Revaluations: The International Experience1. Here is our summary and assessment.
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  With debt levels high and tax hikes politically constrained, some governments are exploring unconventional strategies to fund expenditures. Among these, gold reserve revaluation has resurfaced as a policy tool. In the United States, revaluing the government’s 261.5 million troy ounces of gold—currently priced at a statutory $42.22 per ounce—at market rates near $3,300 could unlock significant fiscal capacity. This note by Colin Weiss for the Federal Reserve reviews five international cases where valuation gains on gold or foreign exchange reserves were used as funding mechanisms, analyzing motivations, accounting methods, and policy outcomes.
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  read more.

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