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21 sats \ 1 reply \ @denlillaapan 14 Dec \ on: Total Balance Sheet Dominance: A Bold Strategy for U.S. Economic Supremacy Politics_And_Law
OK, I see some "hows" here but it doesn't take into account the mechanics of financial markets.
The U.S. gov trying to swap gold into bitcoin is for financial market technical reasons pretty impossible move:
- if they openly announce it, gold price dumps and bitcoin shoots to moon **before ** they do acquire any;
- if they surreptitiously do it, gold price still dumps and bitcoin still shoots to moon but in very chaotic and rumors-based/intransparent ways.
Either way, won't raise much; and will crash gold very fast.
(Fair enough, the U.S. holds its gold accounting-wise at the then-$42 per ounce, so there's a long way to fall before the U.S. itself "loses" money in an accounting sense.)
Checkmate talked about it here too:
https://www.youtube.com/watch?v=Wvf6NV23rqw&ab_channel=WhatBitcoinDid
Very true. The real power here is the announcement. The announcement of the intention would simultaneously cause the crash Gold/boom in BTC.
Having said that, there is no longer any value to holding "heavy rocks", so they would need to be sold at whatever price the market is willing to absorb.
In a sense its even better for US to sell its gold at $150 per ounce as it makes real the demonetization strategy.
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