Posted on 05/31/2025 9:49:56 AM PDT by delta7
First, the federal debt crisis has reached a breaking point, with skyrocketing interest payments now surpassing defense spending and on track to become the largest single budget item. This trajectory is unsustainable, signaling that a major financial reckoning is imminent.
Second, the Trump administration views the US dollar as severely overvalued, believing it is crippling the economy and that urgent intervention is necessary….
Devaluing the dollar is a boon to debtors, especially the US government, allowing it to borrow in dollars and repay in dimes. Short of an outright default—which Washington is unlikely to do—a weaker dollar is the only practical way to address the spiraling debt crisis.
At the same time, devaluation directly addresses the Trump administration’s concern that the US dollar is dangerously overvalued, a problem they believe is crippling American industry and exports.
That’s why a significant dollar devaluation isn’t just possible—I believe it’s a near certainty.
The only question is how the Trump administration will do it. And if history is any guide, gold will once again be at the center of it all.
Ever since all of this hype started again to purchase gold, that was my first thought. All of the fools buying gold would be slitting their wrists if our government demanded all gold possessed in individual hands be turned in for $100.00 per ounce, or even ten times that.
That’s one of the things that would start a civil war.
By degrees it might be tried...
When FDR did it, it was frozen at the “current” price, in essence.
If they tried it now, they would have to “freeze” it at around $3,400 an oz to keep the people away from their torches and pitchforks.
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