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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.
It means gold would be more per ounce than a bit coin is worth now. And they’d probably try to make ownership illegal again.
For a country holding the reserve currency to devalue it….that would not be a good thing for that country.
But have at it.
If you are not holding hard assets when it happens—if you hold stocks or dollars—you will be screwed. Might be time to buy some of the bullion stuff—and not the paper type.
Of course, the last time this happened the dollar was not the reserve currency AND they confiscated gold.
Too many dollars have been printed by the Deep State.
And Trump likes gold. He has gold cherubs in the sconces of the White House oval office.
Yep, we are returning to the Ag standard......and keep an eye on whether US banks are buying gold.
You’re right. The government will likely try to hoard the gold just like they did under FDR.
Another point worth mentioning is that the quantity of gold traded on ETFs is something like >15x the actual amount of physical gold that exists. If there were a rush to acquire physical gold, we would see “bank runs” which would completely undermine the system (not necessarily a bad thing).
I am skeptical that DC & Wall Street would ever allow gold backed currency, given the energy they’ve spent (including waging proxy wars in Libya etc.) to maintain the USD as the reserve currency.
The political class will fight this tooth and nail, because it would severely restrict their borrow-and-spend methodology. Taxing people brings the risk of a backlash; selling a generation yet unborn into debt slavery has no such risks. A gold-backed dollar could not be printed arbitrarily to support deficit spending, forcing either dramatically higher taxes or dramatic cuts in expenses.
Turn the world around the other way.
We never mentioned inflation until Nixon took us off the gold standard in ‘72. Supposedly this was to save the dollar somehow.
The solution to the problem is simple: You asshats in DC need to cut spending. Everyone is screaming because DOGE is actually uncovering corruption AND overspending in virtually every branch of gov’t. Well, take action on those discoveries, apply the savings to the debt immediately, and then cut their budget to the lower amount. That’s a start...
It would be like that scam of minting $1 trillion dollar platinum coins to put in the Fed vaults to erase the national debt - just on a slightly larger scale.
Gold prices would spin out of control and industrial use of gold would stop. President Trump is getting control of our national gold reserves to get set up to fight a 2008 style economic attack on the US.
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Sequoyah101 wrote: “We never mentioned inflation until Nixon took us off the gold standard in ‘72.”
The CPI rose 23.07% from 1965 to 1970, with an annual percent increase of about 4.25%.
https://www.historycentral.com/sixty/Economics/Inflation.html
401Ks become worthless as do US stocks. Millions plunged into poverty - enterprising seniors line up to sell now worthless items. The Great Depression v2.
I do expect to see follow through on a simultaneous audit of all our gold reserves, all not a sampling or fraction, with public observers. I choose to believe President Trump meant it when he raised the issue.
What was the reserve currency then, and was it in the same sense or context then as the dollar as reserve today?
Any kind of dollar rescue would be to get rid of the Federal Reserve and take over its assets. Problem solved.
It would have to be done abruptly without giving it time to hide assets.
Still awaiting that Fort Knox audit...
Still awaiting that Fort Knox audit...
Does anyone even know what the immediate practical effects of minting trillion dollar platinum coins to put in US reserve vaults? I see it candied about and called a scam but never any sort of explanation as to why expecting faith from the public and world in trillion dollar platinum US coins is any different than the current expectation of faith from the public and world in our paper dollar bills? Can anyone enlighten me? My Google searches seem contradictory and non responsive; maybe I’m asking it wrong?
DeSantis has just made gold and silver legal tender in the State of Florida.
For some of us it will be great..😉
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