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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (76014)	7/5/2011 5:41:46 AM
From: TobagoJack	Respond to of 217746

the french and germans are putting a bandage on the greek cancer the americans are trying to use cough syrup to cure cardiac arrest both efforts might work out ;0) the american media seem intent on refocusing attention on china municipal debt, even when such debt was pumped in to enable real productivity and genuine reform and can be cancelled at a stroke of a pen, and paid off by dictate or petty cash.

To: Canuck Dave who wrote (76014)	7/5/2011 5:45:41 PM
From: TobagoJack	Read Replies (2) \| Respond to of 217746

just in, a heads-up From: B Sent: Wed, July 6, 2011 2:17:56 AM Subject: Re: Comments - Week of July 4 From Bob Eisenbeis of Cumberland this AM <snip> But there are other creative options that the Treasury might use, and these center around gold. The Treasury could simply sell gold, which it has the legal authority to do. At current prices this could bring in about $389 billion of revenue. However, a sale of gold would also require redemption of gold certificates held by the Federal Reserve. But there are other, more creative ways that the Treasury might reap the benefits of a gold sale, without actually selling gold itself. For example, the Federal Reserve presently is carrying the value of the gold certificates it holds on its books at $11.041 billion, reflecting the price of $42.22 per ounce set under the Par Value Modification Act. Should Congress authorize a change in the par value of gold to its current market price of about $1487.00 per oz., the Fed’s gold certificates would be revalued at about $389 billion. Section 7 of the Gold Reserve Act of 1934 provides that in the event of a revaluation of the Federal Reserve’s gold certificates, the capital gain accrue to the Treasury and not to the Federal Reserve. Hence, the Treasury’s account at the Fed, and recorded government revenues, would increase by $389 billion. This would bring the Treasury’s deposits at the Fed to nearly half a trillion dollars or more. These are funds that the Treasury could then use to settle debts. Note that the revaluation would not increase the federal debt, nor would it require the actual sale of gold. It would however require an act of Congress. However, given the desire to buy time, it is hard to see Congress offering much resistance to passage of an accounting gimmick that has only revenue and no debt implications. From GATA re Heinz friend Ronald-Peter Stoeferle (Erste Group): Bloomberg News' Francine Lacqua today interviewed Erste Group Bank analyst Ronald-Peter Stoeferle about his new report on gold, which predicts a steadily rising price. The interview is not quite four minutes long and video of it can be found at the Bloomberg Internet site here: bloomberg.com Our friend the German journalist Lars Schall has interviewed Erste Group Bank analyst Ronald-Peter Stoeferle about his new report on gold's prospects. The interview is headlined "Gold Will Continue to Thrive" and you can find it at Schall's Internet site here: larsschall.com“gold-will-continue-to-thrive”/