Friday, October 31, 2025

How the "King of Cheap" Debt Could Raise $5 TRILLION in Capital for the U.S. in One Move

 A recent analysis proposes that the U. S. could raise significant capital by revaluing its gold reserves, which could lead to substantial financial and economic implications.

• The U. S. Federal Reserve currently holds about 261 million ounces of gold, valued at $42.22 per ounce, which has not changed since 1973.

• If the U. S. Treasury revalued this gold to market prices, it could add between $700 billion to $1 trillion to the U. S. balance sheet.

• The Bitcoin Act of 2025 includes provisions that could allow for this revaluation to finance a Strategic Bitcoin Reserve.

• Historical precedent exists for such a move, notably when FDR changed the gold valuation from $20.67 to $35 per ounce in 1934.

• Given the current high debt-to-GDP ratio of approximately 120%, analysts speculate the U. S. could aim even higher with potential revaluation prices of $10,000 to $20,000 per ounce.

• A revaluation at $20,000 per ounce could provide the U. S. with an additional $5 trillion, enabling it to pay down about 18% of its national debt, thereby reducing interest payments and improving fiscal health.

• This strategy would also reinforce the U. S. dollar as the world’s reserve currency amid challenges posed by countries like China aiming to establish a gold-backed currency.

• The writer encourages investors to consider the opportunities that may arise from such a revaluation, hinting that those well-positioned will benefit significantly.

The idea of revaluing gold reserves as a strategy to mitigate U. S. debt is gaining attention, and it may create investment opportunities in precious metals. Those interested in this prospect can access a special investment report detailing potential high-reward investments in gold-related assets.

https://www.zerohedge.com/news/2025-10-30/how-king-cheap-debt-could-rase-5-trillion-capital-us-one-move

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