History has shown us time and again that debt is the silent destroyer of nations. Yet, as the U.S. sails deeper into uncharted waters of fiscal desperation, the urgency to mask the problem with temporary fixes—be it bond manipulations, speculative bubbles, or even gold revaluations—only accelerates the inevitable. The Titanic analogy is fitting: the water is rising, and the lifeboats are few. The question is not if but when the world acknowledges that fiat, by design, is doomed to fail. Gold, as always, will bear witness
Exactly. Debt based fiat is lent into existence. The main issue is the interest attched to any loan is not created, so that side of the equation just keeps getting bigger and bigger. 8 decades later, its 100s of trillions of dollars, BECAUSE IT CANNOT BE REPAID, IT NEVER EXISTED.
Totally agree, Curt B. The debt-based fiat system is a self-perpetuating cycle, where the interest burden compounds endlessly without the actual creation of value. The illusion of repayment keeps the system afloat, but as you said—if something never truly existed in the first place, how can it ever be repaid? At some point, the realization will hit, and the consequences will be unavoidable. What do you think will trigger that final reckoning?
Well, not sure most folks will ever understand the issues as us gold bugs do. I'm thinking the reckoning will be hyperinflation as ppl will start to realize fiat is losing its value so quickly, they instinctively come to understand it is actually worthless. Of course once the masses start to see paper currency for what it really is- worthless, then confidence is lost and fiat will be spent more and more quickly.
In 1923, at the height of the inflation in Austria, Germany and Hungary ppl spent currency immediately when they got it, because it would buy so much less tomorrow or even later that day. So strong was this urge, they actually started buying things they didnt need or couldnt use (like pianos and other instruments they didnt know how to even play) just to get rid of it quickly.
Thank you for a great analysis ... 🙂👍 ... one thought.. what happens to gold ETFs if they revalue? If not fully backed, won't it break the paper system?? All those 401k and pension investors?? Asking for a friend 🤦♂️
Question to MetaAI: So what is the total book value of US gold vs current spot price? Which value does our US Treasure use as the the value of our gold reserves?
The total book value of US gold reserves is calculated by multiplying the total weight of gold reserves by the statutory value of $42.2222 per troy ounce, which was set in 1973 ¹. According to the World Gold Council, the US gold reserves remained unchanged at 8,133.46 tonnes as of the fourth quarter of 2024 ².
Let's do the math: 8,133.46 tonnes is equivalent to approximately 261.5 million troy ounces. Multiplying this by the statutory value of $42.2222 per ounce gives us a total book value of around $11.035 billion.
In contrast, the current spot price of gold is around $2,900 per ounce ³. Using this value, the total value of US gold reserves would be approximately $757.5 billion.
The US Treasury uses the book value of $42.2222 per ounce to value the gold reserves, not the current market value ¹. This means that the official value of the gold reserves is significantly lower than their current market value.
My questions: So wouldn't revaluing of gold to current price help in the US balance sheet? I wonder what other countries value their gold at?
MetaAI: Revaluing the US gold reserves to the current market price would significantly improve the US balance sheet. The difference between the book value ($11.035 billion) and the current market value ($757.5 billion) is approximately $746.465 billion. This revaluation would increase the US Treasury's assets and reduce its net debt.
As for other countries, some have revalued their gold reserves to reflect current market prices, while others continue to use historical values. Here are a few examples:
China: In 2015, China revalued its gold reserves from $32.90 per ounce to the current market price.
Russia: Russia also revalues its gold reserves periodically to reflect current market prices.
Switzerland: Switzerland marks its gold reserves to market, meaning their value is regularly adjusted to reflect current prices.
European Central Bank (ECB): The ECB also marks its gold reserves to market, revaluing them periodically.
However, some countries, like the United States, continue to use historical values for their gold reserves.
For specific questions about our gold products, please contact us directly: https://vongreyerz.gold/contact?utm_source=substack-comments
History has shown us time and again that debt is the silent destroyer of nations. Yet, as the U.S. sails deeper into uncharted waters of fiscal desperation, the urgency to mask the problem with temporary fixes—be it bond manipulations, speculative bubbles, or even gold revaluations—only accelerates the inevitable. The Titanic analogy is fitting: the water is rising, and the lifeboats are few. The question is not if but when the world acknowledges that fiat, by design, is doomed to fail. Gold, as always, will bear witness
Exactly. Debt based fiat is lent into existence. The main issue is the interest attched to any loan is not created, so that side of the equation just keeps getting bigger and bigger. 8 decades later, its 100s of trillions of dollars, BECAUSE IT CANNOT BE REPAID, IT NEVER EXISTED.
Totally agree, Curt B. The debt-based fiat system is a self-perpetuating cycle, where the interest burden compounds endlessly without the actual creation of value. The illusion of repayment keeps the system afloat, but as you said—if something never truly existed in the first place, how can it ever be repaid? At some point, the realization will hit, and the consequences will be unavoidable. What do you think will trigger that final reckoning?
Well, not sure most folks will ever understand the issues as us gold bugs do. I'm thinking the reckoning will be hyperinflation as ppl will start to realize fiat is losing its value so quickly, they instinctively come to understand it is actually worthless. Of course once the masses start to see paper currency for what it really is- worthless, then confidence is lost and fiat will be spent more and more quickly.
In 1923, at the height of the inflation in Austria, Germany and Hungary ppl spent currency immediately when they got it, because it would buy so much less tomorrow or even later that day. So strong was this urge, they actually started buying things they didnt need or couldnt use (like pianos and other instruments they didnt know how to even play) just to get rid of it quickly.
Yes, all correct, all known.
But, there's a big but.
Are the US really broke. A dissenting voice can be heard by Doomberg, a group of seasoned Energy/ Resources experts who see it another way.
Accounting all the unearthed resources of US of A paints an entirely different picture.
Well worth a dive.
Cheers from a gold lover
Thank you from Vermont Matthew! You and Egon have helped change my and my families lives. God bless
Oh my word. Thats a peach. 🍑
Thank you for a great analysis ... 🙂👍 ... one thought.. what happens to gold ETFs if they revalue? If not fully backed, won't it break the paper system?? All those 401k and pension investors?? Asking for a friend 🤦♂️
Question to MetaAI: So what is the total book value of US gold vs current spot price? Which value does our US Treasure use as the the value of our gold reserves?
The total book value of US gold reserves is calculated by multiplying the total weight of gold reserves by the statutory value of $42.2222 per troy ounce, which was set in 1973 ¹. According to the World Gold Council, the US gold reserves remained unchanged at 8,133.46 tonnes as of the fourth quarter of 2024 ².
Let's do the math: 8,133.46 tonnes is equivalent to approximately 261.5 million troy ounces. Multiplying this by the statutory value of $42.2222 per ounce gives us a total book value of around $11.035 billion.
In contrast, the current spot price of gold is around $2,900 per ounce ³. Using this value, the total value of US gold reserves would be approximately $757.5 billion.
The US Treasury uses the book value of $42.2222 per ounce to value the gold reserves, not the current market value ¹. This means that the official value of the gold reserves is significantly lower than their current market value.
My questions: So wouldn't revaluing of gold to current price help in the US balance sheet? I wonder what other countries value their gold at?
MetaAI: Revaluing the US gold reserves to the current market price would significantly improve the US balance sheet. The difference between the book value ($11.035 billion) and the current market value ($757.5 billion) is approximately $746.465 billion. This revaluation would increase the US Treasury's assets and reduce its net debt.
As for other countries, some have revalued their gold reserves to reflect current market prices, while others continue to use historical values. Here are a few examples:
China: In 2015, China revalued its gold reserves from $32.90 per ounce to the current market price.
Russia: Russia also revalues its gold reserves periodically to reflect current market prices.
Switzerland: Switzerland marks its gold reserves to market, meaning their value is regularly adjusted to reflect current prices.
European Central Bank (ECB): The ECB also marks its gold reserves to market, revaluing them periodically.
However, some countries, like the United States, continue to use historical values for their gold reserves.
Question is why? Because to allow gold to show its true value will expose the $ for what it really is ? How long can
This illusion be upheld ?