It’s no secret that despite President Donald Trump’s occasional tough talk about slashing the United States’ monstrous $38.9 trillion debt bomb, his administration has zero real political will to slam the brakes on Washington’s out-of-control spending spree.
The inaction has Wyoming Republicans gearing up for the inevitable economic trainwreck when the day comes that America can no longer just print its way out of paying the interest on that colossal tab.
In January, Wyoming lawmakers shelled out $10 million to snap up 2,312 troy ounces of gold bars, now worth a cool $11.6 million as the yellow metal keeps soaring.
The move came after the legislature passed the “Wyoming Gold Act,” forcing the state’s investment portfolio to load up on precious metals as a hedge against economic chaos, including skyrocketing federal debt, raging inflation, a weakening dollar, and even doomsday scenarios.
Wyoming state Sen. Bob Ide (R), the bill’s lead sponsor, isn’t mincing words.
“I can’t put a timeline on it, but there’s gonna be a sovereign-debt crisis,” Ide said. “There’s no will to rein in spending.”
The gold sits locked in a high-security vault run by private firm Wyoming Reserve, inside a beige, single-story building that once housed the Casper Star-Tribune.
The Wall Street Journal reports:
The vault is structured like “an onion layer,” moored to bedrock and closely guarded, according to company Chief Executive Josh Phair. He testified in support of the gold-buying bill, which he said would help the state become a precious-metals hub for the country.
While state lawmakers mused about the logistics of transporting precious metals to Wyoming via aircraft and armored vehicle, the state ultimately bought gold from a bank that already had a stockpile in the Reserve, according to Phair. The storage fees there began at $7,021 a year when the state purchased the gold, but the cost fluctuates daily depending on the gold’s value, according to the state treasurer’s office.
However, not everyone is cheering the state’s accumulation of gold.
Some big-name Wyoming Republicans, including Gov. Mark Gordon (R), have claimed the gold grab as a real risk to the state’s financial security.
On the other hand…
As we noted on Friday, Goldman’s Robert Quinn suggests that gold may not be the safest haven – as demand underwhelmed at the onset of the Iran war.
During February 24th – March 3th, Managed Money purchased just +$470mm of Gold futures. New longs (+$830mm) were partially offset by shorts (-$360mm).
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