MOSCOW, May 11.The U.S. government has one trick left to avoid bankrupting the Treasury, former CIA adviser James Rickards wrote in an article for the Daily Reconing.
According to him, the collapse of the US bond market and the US economy can be prevented by contacting the Federal Reserve system.
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“One phone call from the Treasury to the Federal Reserve can change the price of Treasury gold from $42.22 an ounce (historical value) to a market level of $2,042 an ounce (today's price). This will draw more than $550 billion of new purchasing power out of thin air — without issuing any debt. In fact, this was done by the Eisenhower administration in the 1950s under similar circumstances,” Rickards said.
confidence in the correctness of the decision to untie the dollar from the gold reserve.
«You shouldn't expect that to happen because no one in power wants to recognize gold's role as a monetary asset. They don't want to for anyone to even talk about gold other than a «barbaric relic» that belongs in the dustbin of history. Instead, expect this chicken game to continue. You can prepare for the worst by buying gold and building up the cash reserves you you can redistribute later,» Rickards concluded.
A day earlier, US Treasury Secretary Janet Yellen warned the day before that without a decision on the public debt, the government would not be able to continue meeting all of its obligations, possibly by as early as 1 June.