Loading ...higher Gold price/ a very high gold price would reduce bond issuance by dropping the interest rate on US debt….As it stands now at 42 $ set against a $ 37 Trillion debt, is neither here or there…..but get it upto $ 14 thousand and 10 % of the debt is backed by Gold…..
Plus I think you have $ 28 billion of debt maturing, this year alone, much will have to be rolled over at whatever the rate is, plus existing debt ie the $ 37 trillion has such vast coupon payments, you are issuing debt, to pay the coupons on existing debt.
So