WaPo: U.S. should sell assets like gold to get out of debt, conservative economists say

[KoKo]

U.S. should sell assets like gold to get out of debt, conservative economists say
By Joel Achenbach, Published: May 15

With the United States poised to slam into its debt limit Monday, conservative economists are eyeballing all that gold in Fort Knox. There’s about 147 million ounces of gold parked in the legendary vault. Gold is selling at nearly $1,500 an ounce. That’s many billions of dollars in bullion.

“It’s just sort of sitting there,” said Ron Utt, a senior fellow at the Heritage Foundation. “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

But that’s cockamamie, declares the Obama administration. Mary J. Miller, Treasury’s assistant secretary for financial markets, said the U.S. should sell assets in an orderly, “well-telegraphed” manner, not in a “fire sale” atmosphere with a debt limit deadline accelerating the process.

“It would be bad for the taxpayers. It would be bad for the markets,” Miller said.

http://www.washingtonpost.com/national/economy/us-should-sell-assets-like-gold-to-get-out-of-debt-economists-say/2011/05/12/AFIvmI4G_print.html

[ret5hd]

1. My guess is "conservative economists" don't give a damn about the gold...

they are thinking much bigger than that.

They want land. The people's land. Yellowstone. Grand Canyon. etc.

[KoKo]

2. There was an article that "some" want US to sell off gold so that we are left

with empty paper "I.O.U" economy while China or India will have currency based on gold. I think I read it on "Zero Hedge" (the financial site). I laughed at the "conspiracy theory" there.

But, now that I see "Heritage Foundation" is proposing that and they are sending this out to newpapers all over the US...I realize it might not be conspiracy at all.

[Ikonoklast]

3. Hmmm. I don't know what to think of that.

Downsize the DoD by 1/4 first, then get back to me about the debt.

[JAnthony]

4. We have 14 trillion in gold bars sitting around?

I highly doubt it.

I doubt we have a single trillion.

[flor-de-jasmim]

5. That's what Portugal did years ago, and look at their situation now. NO THANKS!

[pipoman]

6. Gold wouldn't be $1500 for long

if they started selling those reserves. Less than 1 day would be my prediction. Sale of a small fraction would bring the price tumbling.

[krispos42]

10. But it would destroy the Glenn Beck faithful overnight

:cry: "But Glenn said to buy gold!" :cry:

[SoCalDem]

7. Like a dairy farmer selling all his cows to the slaughterhouse

to save the dairy :)

[originalpckelly]

9. Huh?

We aren't on the gold standard any more. There's absolutely no reason for us to have any gold whatsoever as a government. None.

It is, however, a bad idea to sell it all at once, because it would dramatically reduce the price of gold, thereby eliminating any benefit in selling it now.

[pipoman]

13. Gold is the ultimate hedge against inflation

even though we are no longer on the gold standard, our currency is backed by the wealth of the nation. By cashing in that wealth, inflation would grow out of control.

[Ian David]

8. Sell Texas and Oklahoma. n/t

[eilen]

11. Well, they have already sold the Captitol Building and the

people that work there....

[Fumesucker]

12. Technically I think those are just rented..

If someone else comes up with a better offer I'm sure the politicians will jump on it.