Tuesday, April 5, 2011

Tim Geithner Rules Out Gold Sales

As the U.S. Treasury approaches its authorized debt ceiling yet again, the question of the U.S. government selling some gold to make ends meet has been raised. In a letter to Congress, Treasury Secretary Tim Geithner ruled out that option.
Geithner states that selling reserves of Gold Bullion “would undercut confidence in the United States both here and abroad”.

The Treasury Department predicts the US will reach the debt limit no later than May 16.

The US government – the world’s largest single holder of physical gold – has not sold Gold Bullion, other than small amounts for coinage, since 1979....

"Turbo Tax Timmy" has come in for a lot of criticism, but it's hard to criticize him for this decision even if it conforms to precedent. I suppose there was a worry that he'd threaten to do it in order to pressure the Republican House to raise the debt limit; if so, then that worry is unfounded.

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