ALERT: Their Secret Plan To Revalue Gold Was Just Leaked

Summary

In this video, George Gammon explores the concept of the U.S. government revaluing gold to $20,000 an ounce as a potential solution to the U.S. debt crisis. He breaks down the mechanics of how this could be done using gold certificates and monetizing gold through the Federal Reserve, highlighting the risks of inflation and soaring interest rates. While the move could lower debt-to-GDP ratios, it might also lead to an inflationary doom loop. Gammon also discusses the legal framework for this policy and the impact on gold holders, making the idea both controversial and complex.

Takeaways

• 😀 The U.S. government could potentially solve its debt crisis by revaluing gold to $20,000 per ounce.
• 😀 The United States holds approximately 260 million ounces of gold, valued at around $858 billion at current prices.
• 😀 If the gold price is revalued to $20,000 per ounce, the U.S. gold reserves would be worth around $5 trillion.
• 😀 To fund the increased value of gold, the U.S. government could sell treasuries, which would increase the liabilities but also add assets in the form of gold.
• 😀 The Treasury and the Federal Reserve have the legal authority to issue and purchase gold certificates, which could help monetize the increased value of gold.
• 😀 The gold certificates issued by the Treasury would be purchased by the Federal Reserve, with the gold representing an asset on their balance sheet.
• 😀 The Treasury would effectively use gold certificates to buy down U.S. debt, potentially reducing the debt-to-GDP ratio from 120% to a more manageable 60-70%.
• 😀 While reducing the debt-to-GDP ratio is key, it doesn't eliminate the debt entirely, leaving the U.S. with a remaining debt of around $32 trillion.
• 😀 If the U.S. revalues gold, the knock-on effects could lead to inflation and higher interest rates, which could lead to a new debt crisis.
• 😀 The process of revaluing gold and monetizing it would create inflation and require the Federal Reserve to engage in yield curve control to keep interest rates manageable, which could lead to an unsustainable inflationary cycle.
• 😀 Despite the potential for inflationary doom loops, the government could still pursue this strategy as a way to handle the debt crisis, especially if it becomes more mainstream and politically viable.

Q & A

What is the primary proposal discussed in the video?

The video discusses the possibility of the United States solving its debt crisis by revaluing gold to $20,000 an ounce, or higher. This move would involve the U.S. government purchasing gold at this revalued price and monetizing it to address its national debt.

How does revaluing gold help solve the U.S. debt crisis?

Revaluing gold increases the value of the U.S. government's gold holdings. For example, if gold is valued at $20,000 an ounce, the U.S.'s 260 million ounces of gold would increase from approximately $850 billion to about $5 trillion, boosting the government’s assets and providing a way to address its debt.

Where would the U.S. government get the money to revalue the gold?

The government could sell U.S. Treasury bonds to raise the funds needed to purchase the gold. Although this increases the government's liabilities, it also increases its assets (gold), maintaining a balanced approach.

What role do the Federal Reserve and Treasury play in this plan?

The Federal Reserve would purchase gold certificates issued by the Treasury, which represent the claim on physical gold. This transaction would increase the Treasury’s cash holdings, allowing it to reduce its national debt, while also maintaining the gold certificates as a liability on the Federal Reserve's balance sheet.

What is a 'gold certificate,' and how does it fit into the plan?

A gold certificate is a financial instrument that represents ownership of gold. The Treasury would issue these certificates to the Federal Reserve, which would then hold them as assets on its balance sheet, essentially monetizing the gold and helping to address the national debt.

Can the U.S. government legally do this?

Yes, the U.S. government has the authority to revalue gold and issue gold certificates. This is outlined in the Federal Reserve’s financial accounting manual, which allows the Treasury to issue gold certificates to the Federal Reserve to monetize the gold it holds.

What would be the impact on the U.S. debt-to-GDP ratio?

By revaluing gold and monetizing it, the U.S. could reduce its debt-to-GDP ratio. The goal would be to lower the ratio from around 120% to a more sustainable 60-70%, which would make the debt more manageable and reduce the risk of a debt crisis.

What are the potential downsides of this plan?

The downside is the potential for inflation and higher interest rates. Revaluing gold and monetizing it would introduce more currency into the economy, leading to inflation. As the government spends more money, interest rates could rise, triggering a debt spiral that might lead to a new crisis, known as an inflationary doom loop.

Why might revaluing gold lead to inflation and higher interest rates?

Revaluing gold would introduce more currency into the economy, as the government would essentially print money to buy the gold. This increased money supply could cause inflation. As inflation rises, interest rates might increase to control it, which could make the debt more expensive to service and lead to higher borrowing costs for the government.

What is the likelihood of the U.S. actually revaluing gold to solve the debt crisis?

While the idea is plausible and legally feasible, the probability of the U.S. government revaluing gold is relatively low. However, if the narrative gains traction in mainstream media and influences voter decisions, particularly in a future election, the chances could increase, possibly to 10% under certain political conditions.