If various US institutions are fatally exposed to a rising gold price what is to stop the Fed saying that the US will sell gold? That would crush the market instantly.
I do not believe they have ever sold gold but do they have any law to prohibit the sale of gold? There is supposed to be 8000 tons of the stuff sitting in Fort Knox. Even the threat of sale would tank the price enough to allow the insto's to balance their positions.
Comments?
