Can Revaluing Fort Knox Gold Fix the National Debt?

Can Revaluing Fort Knox Gold Fix the National Debt?

With the national debt climbing to unprecedented heights, financial circles and internet forums are frequently abuzz with a tempting economic theory: What if the U.S. government simply revalues its official gold reserves to $20,000 an ounce to instantly wipe away the deficit?

It sounds like a clever modern trick—a way to use Uncle Sam’s legendary stash of bullion to erase trillions in liabilities without having to cut government spending or raise taxes. But when you break down the math, look at historical accounting figures, and analyze what it would do to everyday purchasing power, the narrative falls apart. (more…)