Christopher Matthews at Time magazine asks just what kind of assets does Uncle Sam have lying around. We hear about the debt all of the time, but I guess he figured that it would be worth trying the glass-half-full tack for a bit.
What did he find?
The federal government also has a very sizable stash of gold. In fact, at 261,498,926.247 troy ounces, it’s the largest in the world. And, in case you haven’t noticed, gold is quite popular among investors who fear the debasement of government currencies in this era of worldwide, aggressive monetary stimulus. At the going rate of $1,660 per ounce, that stash is worth nearly $442 billion.
That’s a pretty penny, for sure, but look how big the stash happens to be in student debt. Matthews estimates that the Fed is sitting on $948 BILLION in student loans. Those are fat contracts too with super-fat interest rates. These loans aren’t paying 1 or 2% like the T-bills. Nope. These kids are on the hook for 6, 7, 8 or even 9%. Does that gold bring those kind of returns?
This shows you the power of fiat currency if the people believe in the system. I wonder how long that will keep happening.
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