Why the American government doesn’t want gold to rise.

This is a semi-conspiracy story, but it makes sense.

The U.S. government has the most gold reserves in the world (supposedly over 8000 tons), but they haven’t allowed anyone to see this gold or audit it in over 50 years. So why don’t they let anyone see that gold? The only logical solution is that they don’t have as much gold as they say.

With so much debt these days, people are only lending money to America because they believe the U.S. has enough gold reserves (supposedly over 8000) tons. If the government really has more than 8000 tons of gold, they’d be happy to let others see it (a boon to selling their debt). It seems like the U.S. government is afraid of letting others see their gold, which is probably because they don’t have the gold (in other words, lying).

So why doesn’t the American government want gold to rise? A rising gold price means a weaker US dollar. And that’s the last thing the American government wants. If people see gold rising, they’ll lose confidence in the American dollar, and how will the U.S. sell debt in the future? The government will be forced to sell their gold reserves, and when it turns out that they don’t even have as much gold as they said……… It’s not gonna look pretty.

2 thoughts on “Why the American government doesn’t want gold to rise.”

  1. Wait, if gold prices go up, doesn’t the U.S. gold reserves increase in value? So wouldn’t the American government want gold prices to go up, that way they can sell more bonds (backed by gold reserves)?

    1. No, Ryan, you’re wrong. An increasing gold price means the American dollar is devaluing. That’s the last thing the Fed wants. The Fed has to make a choice, and the obvious one is that more confidence in the USD is more important than higher gold prices (more valuable gold reserve).

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