** New US Bill Revalues Fed Gold to Buy Bitcoin --- Repercussions for gold?
tincup
Posts: 5,110 ✭✭✭✭✭
Not sure what to make of it... but interesting.
"Revaluing Fed Gold
Funding for the Bitcoin purchases is outlined to come from multiple sources. The plan allocates $6 billion from the Federal Reserve's net earnings remitted to the Treasury from fiscal years 2025 through 2029. It also proposes reducing the discretionary surplus funds of Federal Reserve banks to $2.4 billion from the current $6.825 billion. Additionally, it involves revaluing the Federal Reserve banks' gold certificates to their fair market value.
Within six months of the bill's enactment, Federal Reserve banks would be required to tender all outstanding gold certificates to the Treasury Secretary. New gold certificates, reflecting the fair market value of the gold, would then be issued. The Federal Reserve banks would remit the cash value difference to the Treasury Secretary.
As of July 24, the Federal Reserve banks held "gold stock" valued at $11 billion, based on the official U.S. book value of $42.22 per troy ounce, according to the Federal Reserve Bank of New York. This revaluation would adjust the certificates to reflect the current market value of gold, providing additional funds for the Bitcoin reserve initiative. "
https://zerohedge.com/news/2024-07-31/us-bill-revalues-fed-gold-buy-bitcoin
Comments
Man, it's amazing the crap that people believe just because it was printed on the internet. SMH!
I thought the idea of bitcoin was to stay away from the Govt? Hypocrite much? Lol
Knowledge is the enemy of fear
From the proposed legislation:
"The Federal Reserve banks would remit the cash value difference ($42.22 vs the current $2424) to the Treasury Secretary."
As proposed FED reserve banks would remit their $42.22 per oz gold certificates and approximately $631.5B in cash to the Treasury and the Treasury would issue new current gold (current gold price) certificates in return.
This $631.5 billion cash payment to the Treasury would be coming from the Federal Reserve banks. Are they just going to open their cash vaults or are they going to print it? Also, note these are gold certificates (promises for gold), not the real McCoy, so there is no real change in supply or demand with real gold.
Legislated Treasury purchases of bitcoin would help drive bitcoin prices. I welcome actions that drive demand for cryptos, but not at the expense of creating (printing) new money and diluting the value of the few dollars I still have in my wallet.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I believe the idea of requiring the Govt to hold bitcoin is to provide some dollar insurance. The idea of gold is to stay away from Govt yet Govt's central banks hold gold. This is simply a case of a central bank, regardless of what nation, needing alternative money for when it's currency fails (and even a store of value while the currency is failing), not the other way around.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If the Fed has $11billion of gold stock certificates valued at 42.22 per ounce, and it becomes $2424 per ounce, that is a 57.41 x increase or $631.5 billion. So, the Fed would then give Janet Yellen and the Treasury the difference, or $620.5 billion in exchange for new gold certificates at spot.
I think this may be a new way to create another $620 billion of Federal Reserve Notes for the government to spend and it might not show up as "new debt or borrowing". Money supply however should increase which might help gold prices.
Not sure how or when this gets approved?
My US Mint Commemorative Medal Set
According to you, even Yahoo is lying to us
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Well... guess the discussion on this news doesn't concern you, since it may not be 'mainstream' news. No worries! Ignore as you please!
Oh, I don't know how accurate that really is. After all Blitz... you do post a lot here on the internet regarding 'gutter talk', but from what I can tell, not that many believe it except mainly you. So just proves that perhaps people on this forum don't believe it just because it was printed on the internet by you and aren't as gullible as you seem to imply. Just say'in.... seems to be a little contradictory.....
If blitz is buying SLV like he says he is, he is actually helping JPM suppress the price of silver by not taking physical possession of the stuff that he “owns”.
This is quite hilarious because when he finally realizes that he needs physical silver in his possession, he will make some panic purchases and that will help drive the price higher as the physical shortage becomes serious.
Thanks, blitz!!!!😊
I knew it would happen.
Not actively buying SLV. Currently only holding 1009ozt/shares. THKS!
Stack on! For me it's "God bless the VOO". THKS!!
Govt need bitcoin? Haha. It's only being talked about because a few billionaire butcoin folk have donated large sums to the orange man. An orange man that was against butcoin last go round. What a bunch of hypocritical BS.
WEAK!!!
Knowledge is the enemy of fear
Creating $620B in new Federal Reserve notes would be inflationary and just dig a deeper hole. Balance sheet games only work so long.
zero's are easily added and easily removed. Zimbabwe taught us that. But you are correct, the fallout is never good.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
None of this crap is happening, folks.
When Jerome Powell or the FOMC talk about it, let me know.
You don't know what they talk about when you're not listening. And you only get to know what they want you to know (or believe).
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I think the bank ought to tender their gold certificates to Heritage , instead of the Treasury .They will make more selling them in auction. Then they can buy more bitcoin. Give that gold back the the rightful owners. (WE, the People)...... after all, we are the only ones who have to budget and manage our money properly , or go broke. The FED keeps the majority poor.
I know exactly what they talk about since the minutes of all FOMC meetings have been made public since 1994.
I also can tell from monetary policies and Fed releases like the H.6 and H.15 among others.
It's all there, you just have to understand banking and monetary policy to get it.
Jobs reports are "all there" as well until they get "revised" months later.
What they want the public to know (believe) is all there, but you are not privy to what they say to each other "privately" and do not wish to share with you. You and I are only seeing "optics" which are fine tuned to paint a specific picture.
LOL. To "get it" does not necessarily involve believing what you are told. In fact, those that really get it look beyond what they are told.
Remember, when the gov't or their unofficial branches speak: "liars figure and figures lie."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
U.S. Senator Cynthia Lummis has put forward an innovative plan to establish a strategic Bitcoin reserve, partly financed by revaluing the Federal Reserve's gold certificates, as reported by CoinDesk. The draft legislation proposes a 'Bitcoin Purchase Program' aimed at acquiring up to 200,000 BTC annually over five years, totaling 1 million BTC.
I wonder how she feels about this strategic idea today. LOL
The Bitcoin ETF's really got hit hard today and are way too volatile to be a decent source of monetary value.
The US should stick with physical gold reserves, not play timing games with digital crypto assets.
My US Mint Commemorative Medal Set
https://www.theblock.co/post/157477/crypto-vcs-execs-gave-thousands-to-sen-cynthia-lummis-in-2022s-second-quarter
Knowledge is the enemy of fear
money talks, BS walks
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey