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The U.S. Government plans to sell millions of barrels of oil from the Strategic Petroleum Reserve starting in 2018 as means of raising cash in order to help fund the massive and growing spending deficit – Bloomberg LINK.
This is part of the new budget deal which has been agreed to between the leaders of Congress and the Obama gang but still needs full approval from the House and the Senate.
But given that the general consensus in mainstream America that gold is no more useful than a Pet Rock, why not unload part of the alleged U.S. gold holdings rather than a useful, strategic asset like oil? By now everyone who cares to examine the issue understands that the U.S. Government has endorsed and supported an aggressive program being executed by the Fed and the big Wall Street banks to suppress the price of gold at any cost.
Why not let the gold market engage in unfettered price discovery and then sell some Treasury gold instead of oil? Even at today’s price, if the U.S. were to sell a mere 1000 tons – or just 12% of its alleged 8100 ton stash of gold – it would be able to raise $37 billion. If the gold is really there and it’s just collecting dust why not sell the gold?
The answer is pretty obvious…the gold is not there to sell – just ask the German Government…