It would have a similar effect to printing new USD and issuing it evenly to members of the population, since our gold reserve is largely a stockpile not expected to be sold on the market.
Gold gets released into circulation, the value of gold decreases, the value people individually receive is similar to the amount lost by those holding gold.
That effectively means it would likely be a transfer of value from gold hoarders, some of which are relatively wealthy compared to the rest of the population, to everyone else, rather than some magical new source of value to give to people. (not exactly, obviously, but this is generally what I’d expect based on how the currency dynamic works with our existing USD reserves/printing capabilities, and how the supply rush would be similar with gold compared to USD)
Should we do it? I don’t know, it could be beneficial, but I’d rather we simply issued new currency and taxed the billionaires more to compensate for any inflation caused, rather than the government having to spend all the money on manpower and negotiation for the sale of all the gold we have, so that individuals could receive actually functional currency in the form of USD.
The leading party for the last 20 years in my country would say that printing money didn’t bring on inflation. It’s funny how such a simple example beats their economy planning
It would have a similar effect to printing new USD and issuing it evenly to members of the population, since our gold reserve is largely a stockpile not expected to be sold on the market.
Gold gets released into circulation, the value of gold decreases, the value people individually receive is similar to the amount lost by those holding gold.
That effectively means it would likely be a transfer of value from gold hoarders, some of which are relatively wealthy compared to the rest of the population, to everyone else, rather than some magical new source of value to give to people. (not exactly, obviously, but this is generally what I’d expect based on how the currency dynamic works with our existing USD reserves/printing capabilities, and how the supply rush would be similar with gold compared to USD)
Should we do it? I don’t know, it could be beneficial, but I’d rather we simply issued new currency and taxed the billionaires more to compensate for any inflation caused, rather than the government having to spend all the money on manpower and negotiation for the sale of all the gold we have, so that individuals could receive actually functional currency in the form of USD.
The leading party for the last 20 years in my country would say that printing money didn’t bring on inflation. It’s funny how such a simple example beats their economy planning