US has reached “day one” of long-term fiscal unsustainability, with interest on debt exceeding defense spending, requiring radical measures to balance budget.
Fed receives a “D grade” for faulty models, failure to address fiscal overspending driving inflation, and overly high interest rates harming small businesses and consumers.
High interest rates empower government by increasing future deficit projections, while small businesses struggle with expensive capital and consumers face higher costs for homes, cars, and credit.
Proposal for gold-backed Treasury bonds to restore sound money, price stability, and establish a beachhead for a new era of sound finances.
Gold-backed bonds could serve as collateral for stablecoins, creating a digital dollar redeemable in gold and attracting the crypto community.
Gold-backed bonds may lead to an international monetary system with fixed exchange rates, recreating benefits of the classical gold standard.
Fed chair hasn’t hit inflation targets in four years with no consequences, highlighting lack of accountability.
Fed’s “interest on reserves” policy, paying banks to hold excess reserves, manipulates rates and discourages lending since 2008 emergency powers.
Fed’s one-size-fits-all approach of high interest rates disproportionately burdens citizens while big business, government, and investors absorb costs.
Fiat money system skews price signals, causes malinvestment, and enables hyper-financialization with derivatives notional amount 50x global GDP.
2008 financial crisis resulted from Fed’s loose monetary policy and malinvestment, causing worse economic damage than Great Depression.
Gold standard provided monetary discipline, enabling fixed exchange rates and wealth gap closing from mid-1940s to early 1970s.
Proposal to end Fed’s interest on reserves to encourage bank lending, as current policy results in “extraordinary bonanza for banks” to do nothing.
Suggestion for gold-backed 50-year Treasury bonds maturing on July 4, 2076 to restore sound money principles and celebrate U.S. 250th anniversary.
The US government’s reluctance to allow audits of Fort Knox’s gold reserves, even for sitting senators, raises suspicions of missing gold or undisclosed transactions, potentially exposing a long-term lie about gold holdings.
The market value of Fort Knox’s gold is 70 times its book value, making any discrepancies a significant confidence killer for the government’s credibility.
Inflation acts as a hidden tax, benefiting banks and the government at the public’s expense, resulting from government control over money and banking, leading to monopolization and manipulation of the money supply.
The Austrian School of economics defines inflation as an increase in the money supply, not just rising prices, explaining why there are winners and losers in inflationary environments.
The emergence of cryptocurrencies challenges the US dollar, potentially removing government involvement in money and banking, allowing the market to decide the best medium of exchange.
The Mises Institute’s policy of rejecting government funding maintains their anti-government stance and commitment to free market principles, serving as a solution to government control over money and banking.
The evolution of the banking system has led to a central bank cartel that regulates banking, sets reserve requirements, and uses monetary manipulation measures, institutionalizing the problems with fractional reserve banking.
The US dollar is no longer redeemable in gold since 1971, making Fort Knox’s gold a historical relic rather than backing for the currency.
The stock market’s American bubble is the biggest in history, characterized by a chronically firm senior currency like the dollar, surpassing even the 1720 Dutch tulip bulb bubble.
Big banks and market operators have rebounded stronger than ever after crashing the economy in 2008, now driving the market towards a potential downturn.
The US economy typically follows the stock market in crashes, with the S&P 500 serving as a leading indicator, but in bubble scenarios, both may decline simultaneously.
Global markets, including Germany’s booming and China’s recovering stock markets, are vulnerable to a US stock market downturn due to America’s position as the world’s financial center.
Gold’s real price is projected to maintain its long-term uptrend, despite potential short-term volatility during market crashes affecting gold price and precious metal miners.
A divergence is expected between gold’s rising real price and copper’s falling real price, indicating contrasting long-term trends in these commodities.
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