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Thread: US Government to secure mortgage market with gold reserves

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    Default US Government to secure mortgage market with gold reserves

    http://www.moneymarketing.co.uk/cgi-....cgi?id=173208

    The U.S. Treasury Department has promised “hundreds of billions” to save the US markets using its own gold reserves.

    President Bush approved the use of existing authorities by Treasury secretary Hank Paulson to make available as necessary the assets of the Exchange Stabilisation Fund for up to $50 billion to buy more illiquid mortgage assets.
    When the Government bailed out the the Government Sponsored Enterprises it promised to buy illiquid mortgage backed securities, but this announcement extends that pledge.

    The ESF was created after the Great Depression and uses the US gold reserve as collateral for financial stability.

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    Default Re: US Government to secure mortgage market with gold reserves

    ^^^ might as well mortgage the interstate highway system, the White House and the Capitol building while they're at it !

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    Default Re: US Government to secure mortgage market with gold reserves

    At some point they will allow the price of gold to skyrocket and our debts will get repaid?! Or is it a too optimistic scenario?

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    Default Re: US Government to secure mortgage market with gold reserves

    ^^^ probably true in terms of US dollar denominated gold price. But that has more to do with preserving the 'purchasing power' value of existing US dollars versus printing up new dollars out of thin air than anything else.

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