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There is not enough gold on planet earth to back dollar for dollar all the fiat currency the US Treasury Department has printed, but there’s enough to re-peg it!  Is Trump’s monetary reset a gold-backed dollar?

“All great inflations end with the acceptance of real money—gold—and the rejection of political money—paper.” – Ron Paul

As the United States stands at the precipice of a financial turning point, a radical but historically rooted idea is regaining traction: reinstating the gold standard. With debt soaring and the value of the dollar increasingly questioned, the concept of “sound money” is no longer a fringe fantasy; it’s fast becoming a political flashpoint.

Since gold cannot back the dollar for dollar, it has to be either indexed or the dollar has to be re-pegged.

Clearing the air, what is the difference between re-pegging and indexing?

Here’s the distinction between re-pegging the dollar to gold (gold-backed dollar).

This is the core concept discussed in the article.

• What it means: The U.S. would fix the dollar’s value to a specific quantity of gold (e.g., $20,000 per ounce), making gold the anchor for the dollar.
• Historical parallel: This mimics the classical gold standard or Bretton Woods system, where the U.S. dollar was directly exchangeable for a fixed amount of gold.
• Result: The supply of dollars would be limited by how much gold the government holds. This restores monetary discipline and curbs inflation by tying the currency to a tangible asset.

This is a full monetary reset—gold becomes the base of the monetary system again.

• What it means: The dollar or other financial instruments (like Treasury bonds or benefits) are adjusted based on changes in the price of gold. Think of it like inflation indexing, but tied to gold prices rather than the Consumer Price Index (CPI).
• Example: A gold-indexed bond might rise in value as gold prices rise, offering protection against dollar devaluation.

 This is more about protecting purchasing power, not overhauling the monetary system.

So, which is it?

The article clearly argues for a gold-backed dollar (re-pegging), not mere indexing.

It proposes:

• Devaluing the dollar via a major gold price revaluation
• Potentially reintroducing a formal gold peg (e.g., $20,000 per ounce)
• Auditing Fort Knox and using U.S. gold reserves to back the currency

This would be a foundational change, not a passive adjustment mechanism, but an active restructuring of the U.S. monetary system with gold as its core.

At the heart of this renewed interest is former President Donald Trump, whose admiration for gold, coupled with a crisis-level national debt and a deeply overvalued dollar, has positioned gold as a possible keystone in what may soon become a full-scale monetary reset.

The Two Forces Behind the Reset

Two interlinked crises are converging to force Washington’s hand:

1. The Exploding Federal Debt
   Interest payments on the national debt are now outpacing defense spending and are on track to become the single largest item in the federal budget. This is not just a fiscal headache, it’s an existential threat to the stability of the U.S. government’s finances.
2. The Overvalued Dollar
   The Trump camp views the dollar’s current strength as economically toxic, undermining American exports, widening trade deficits, and hobbling domestic industry. Their solution is as old as monetary history itself: devaluation.

Making the case for dollar devaluation is not an easy one. Short of default, devaluing the dollar offers a tempting way out of the debt trap. A weaker dollar means the government can pay back its debts in cheaper currency, borrowing in dollars and repaying in dimes. It also makes American exports more competitive, addressing long-standing trade imbalances.

The question isn’t if dollar devaluation is coming; it’s how. And that’s where gold re-enters the monetary arena.

Is gold the answer? It to President Trump. Donald Trump’s affinity for gold is well documented. From the glitzy gold decor of Trump Tower to his profitable forays into gold investing in the 1970s and 2010s, his appreciation for the metal runs deep. He has openly mused about the virtues of a gold standard.

“There’s something very nice about having something solid. We used to have a very solid country because it was based on a gold standard.”

His Treasury Secretary pick, Scott Bessent, is also a vocal gold bull, calling gold his “biggest position” and pointing to central bank accumulation as a sign of a long-term bull market.

This isn’t economic nostalgia; it’s strategic positioning.

Will gold be the fuel for the reset engine? Unlike in the Bretton Woods era, today the U.S. doesn’t set the price of gold; it floats on global markets. But that doesn’t mean Washington is powerless.

A modern gold-driven monetary reset could play out in several steps:

1. Massive Gold Buying:
   The U.S. Treasury (or Fed) could begin purchasing gold with newly created dollars, pushing gold prices up and simultaneously driving down the dollar’s purchasing power.
2. Gold Revaluation:
   A revaluation of gold to $10,000 or even $20,000 an ounce would drastically reduce the real burden of U.S. debt. With 261 million ounces in reserves, that’s over $5 trillion in potential asset value.
3. Re-Pegging the Dollar:
   Once the dollar is sufficiently devalued, Trump could introduce a partial or full gold peg to stabilize and anchor the new monetary system. Fort Knox’s audited gold reserves could become the foundation of a new gold-backed dollar.

Judy Shelton has a Gold Blueprint, but will it work? Former Trump advisor and monetary economist Judy Shelton has floated the idea of issuing 50-year Treasury bonds convertible into gold, essentially creating a new, gold-backed security. She envisions launching it on July 4, 2026, to mark America’s 250th anniversary.

“It would be a good way to ensure that nobody in the following administrations gets the bright idea to sell off those gold reserves,” Shelton argues.

Her concept seeks to harness America’s gold reserves as a form of collateral, both fiscal and symbolic, to restore discipline to Washington’s budget and reinforce trust in the dollar.

What comes next is reading the signs of a reset, and they are clear!

• Calls for a Fort Knox audit, the first in decades, have re-emerged.
• Unprecedented flows of gold into U.S. vaults suggest preparation, not coincidence.
• Central banks globally are buying gold at historic levels, hedging against fiat instability.

The pattern is familiar. Throughout history, U.S. monetary resets, from FDR in 1933 to Nixon in 1971, have often involved gold. The playbook hasn’t changed: dollar devaluation, gold revaluation, and a new monetary order.

Washington is quietly preparing now for the gold reset, and it’s already in motion. Trump’s views, the growing debt burden, and the weakening faith in fiat currency are all converging on a singular solution: gold as “the great stabilizer.” While not without risks, a gold-backed dollar could offer the U.S. a way to reset its economy, restore confidence, and anchor the currency in tangible value.

What remains to be seen is whether this historic shift will be managed strategically or forced by crisis.

Final Word: Gold will no longer be a hedge but will be the cornerstone of the American economy.