Trump’s ‘big stick diplomacy’ won’t go far in today’s world system
The US government, grappling with a record US$36 trillion in debt, may consider revaluing its gold reserves to ease financial pressures. This potential move comes as the cost of maintaining a dominant global military presence strains the US economy, making it increasingly reliant on borrowing.
The US Treasury holds a substantial gold reserve, currently valued at a fraction of its market price. Revaluing these holdings from the notional US$42.22 per ounce to the current market price of around US$2,800 could significantly boost the asset side of the national balance sheet. Furthermore, a potential decrease in the interest rate differential between the US dollar and the Japanese yen could reduce capital inflows into US Treasury securities, adding further pressure on the bond market and highlighting the need for the US to explore options for managing its debt.
via SCMP Full Text Feed
The US government, grappling with a record US$36 trillion in debt, may consider revaluing its gold reserves to ease financial pressures. This potential move comes as the cost of maintaining a dominant global military presence strains the US economy, making it increasingly reliant on borrowing.
The US Treasury holds a substantial gold reserve, currently valued at a fraction of its market price. Revaluing these holdings from the notional US$42.22 per ounce to the current market price of around US$2,800 could significantly boost the asset side of the national balance sheet. Furthermore, a potential decrease in the interest rate differential between the US dollar and the Japanese yen could reduce capital inflows into US Treasury securities, adding further pressure on the bond market and highlighting the need for the US to explore options for managing its debt.
via SCMP Full Text Feed
