This could be bad for Gold if it goes through.

The hint to higher reserve requirements would “lock in” the excess reserves the banks have at the Fed thereby reducing the money multiplier permanently.

This in turn would reduce the chance of run-away inflation (which I and others expect to materialisz once things go back to “normal”)

However, given that the banks profitability is largely determined by the ability to run the FRB-fraud one may expect them to fight this proposal “to the death”, which tells me that the chances are minimal of getting through. In fact, if you look through the text of the first bailout package you’ll find that they managed to ELIMINATE the legal minimum reserve requirement (ie freeing the Fed to set whatever it wants)

In effect higher reserve requirement would make a LOT of sense, which of course is why it won’t be coming out of the DC process intact. Asia spot gold is now basically flat (saying fat chance)

The resto of it doesn’t make any sense, so that should probably sail straight through Congress

Doe

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