Comment by scottLobster
3 days ago
One of the crazier ideas to address the deficit is revaluing gold reserves and throwing them at the deficit. Does anyone really think the Trump admin wouldn't consider seizing foreign gold reserves as part of such a move?
I know that instinctively sounds crazy, but this administration attacked Iran without a plan for their closing the Strait of Hormuz, and tariffed uninhabited islands based on an AI-generated list.
They're rational, but they're aggressive and dumb. Treat them as you would treat a guy who starts bar fights; one strategy is quietly moving to the far side of the bar, which is what this appears to be.
> Does anyone really think the Trump admin wouldn't consider seizing foreign gold reserves as part of such a move?
There has to be an adult in the room there to tell them this is a really bad idea. I mean I didn't think Putin would invade Ukraine so my track record is iffy but there's a reason the Belgians refuse to use Russian frozen assets - no one would ever put money there ever again. That'd be the end of their banking sector basically.
If we've learned anything from the last year, any such adult won't be listened to. Trump's a bully, he feels that America should use whatever hard power it has to enforce its interest and damn the soft power or the 2nd order effects that the "adults" care about. He also feels that Europe is or should be America's vassal, and is annoyed that they don't go along with his every whim. Seizing gold reserves would likely be an easy way to bring an uppity vassal to heel in his mind.
The long term ramifications won't even be considered.