Conversative economists are eyeballing all the gold in Fort Knox
which is about 147 million ounces which is selling at nearly
$1,500 an ounce resulting in many billions of dollars in bullion.
Some economists say that given the high market value of this
asset and our tremendous debt problem, we should sell in an
orderly manner. An orderly manner would be the only way to
sell it so as not to crash the precious metals commodities
markets which would have resounding effects on all other world
markets.
Many others believe that the potential sale of gold would be
bad for the taxpayers and for all of the markets. The theory
is that when you dump that much gold there is no such thing
as an orderly market because you are the market and your fire
sale will have so many unintended and untold consequences heard
around the world.
Another economist summed it up best....."Selling off the gold
is just one level of crazy away from selling Mount Rushmore!!"
The United States may have run up a huge debt, but it is not a
poor country by any means. The federal government needs to
borow an average of $125 billion a month to keep paying its bills
and meeting its obligations under current law. The Obama
administration is not opposed to an asset sale, in principle.
The Treasury Department is steadily unloading the morgage-backed securities it acquired in the 2008 economic meltdown. Decision
time in Washington is looming large and decisive, intelligent
leadership must be shown. We need a serious action plan to
signicantly reduce the National Debt and we need the conviction
to get the job done!!!!
The ultimate government asset is the our human capital along with
our education, rules of law and our entrepreneurial culture.
Gold is a considerable assets but AMERICA is not about fire sales.
Sheila McKinney
