U.S. Treasury Would Rather Hoard Gold Than Sell, Even If The Government Defaults getdiscountz.blogspot.com

getdiscountz.blogspot.com ® U.S. Treasury Would Rather Hoard Gold Than Sell, Even If The Government Defaults

The U.S. Treasury’s gold is not for sale, not even if the government defaults on its debt.

The government has shut down until Congress can agree to raise the debt ceiling. If that doesn’t happen in two weeks, the government will soon not be able to pay its bills. But Treasury officials say delaying all government payments, from Social Security to debt interest, would be the least harmful approach.

“Selling gold would undercut confidence in the U.S. both here and abroad,” a spokeswoman for the Treasury told Market Watch, “and would be destabilizing to the world financial system.” She quoted the official position Senator Orrin Hatch established last year. Essentially, the Treasury believes gold is more valuable than the government's promises and committments.

The Treasury stockpiles about 8,100 metric tons of gold. That’s about $340 billion at current prices, enough to keep the government running for a month.

U.S. Treasury Would Rather Hoard Gold Than Sell, Even If The Government Defaults