ALERT: Their Secret Plan To Revalue Gold Was Just Leaked

Imagine waking up tomorrow morning and hearing this. Breaking news, this just in. In an effort to solve the U.S. debt crisis, the government has just revalued gold to $20,000 an ounce. Now that may have been artificial intelligence, but there are some very high-level macro thinkers, like Luke Groman, with real intelligence, that have been talking about how the United States may try to solve their debt crisis by revaluing gold to $20,000 an ounce, if not higher. And this is something they could be doing very, very soon. I'm going to explain how they would do this and what I think the probabilities are of this actually happening in three simple, fast steps. Step number one, let's go over the mechanics here. It's actually pretty easy, believe it or not. We'll start in this section of the whiteboard, and we've got everybody's favorite, your drunk, insolvent Uncle Sam. The federal government, right here. So he is holding a sign that says, I will pay $20,000 for an ounce of gold. So if you are a gold holder and you wanted to sell your shiny yellow metal, what did Keynes say, the barbarous relic? Why would you sell it at a lower price than $20,000 an ounce? The answer is, you wouldn't. Okay. So Fort Knox, as we know, has a lot of the gold, but the total amount of gold the United States holds, roughly 260 million ounces, which at today's price, would be valued at approximately $858 billion. Okay, well let's think this through. If your drunk, insolvent Uncle Sam revalued the price up to $20,000 by just putting in that bid, then the value of the gold the United States owns goes from, let's call it $850 billion, straight up to roughly $5 trillion. Now you may be saying to yourself, okay, George, I get that, but where on earth would they get the money? Well, they just sell treasuries. And you say, well, wouldn't that increase the debt? Yes, it would increase the liability side of the balance sheet, but it would also increase the asset side of the balance sheet because they're buying that physical gold. And I'd also like to remind everyone that back in 2020, the Federal Reserve came out and put in a bid for corporate debt because that market was completely blowing up. There was no liquidity. And they only had to buy about a billion dollars worth of corporate debt to kind of set a four on the actual price. So my point here is, number one, they would increase the liability side, but they'd also increase the asset side, basically a wash. And also, in my opinion, they wouldn't have to buy that much to go ahead and reset that price from where it is today all the way up to $20,000, if not higher. Okay, great. So very straightforward. Now let's go over and look at the Treasury, Scott Besant, and the Federal Reserve, Jerome Powell. We've got assets on the left, liabilities on the right. Currently, 37 trillion in debt caught for the federal government, but they have the gold that we were talking about earlier. And the Federal Reserve, they have the TGA as a liability on their balance sheet. That's basically the checking account for the Treasury. Now, believe it or not, the Federal Reserve has this secret monetary manual. At least no one that I know of has really ever heard of it other than Luke Grohman. He's the one that pointed it out to me on Twitter when we were going back and forth about this. And this is actually a real thing. We're gonna go to it in just a moment. So I guess they just give this to their employees when you get hired at the Federal Reserve. They just give you this Fed Monetary Policy Manual. I guess that's how it works. But in Section 2-10, they talk about how the Treasury can issue these gold certificates. Sounds very fancy, but it's just a financial gimmick. And this is the key to this whole thing working out. Okay, so the Treasury can issue these gold certificates. You got it? All right. And these gold certificates have perceived value to an entity like the Federal Reserve. Again, this is just accounting gimmicks back and forth here. But they are legal. Okay, so those gold certificates issued by the Treasury go onto the Fed's balance sheet. They buy all of them, which represents a claim on the gold they have as an asset. So they buy $5 trillion worth of these gold certificates. So then they've got those gold certificates as an asset, and they have the $5 trillion of liabilities that they just deposited into the TGA. So now the Treasury's balance sheet changes in the sense they have $5 trillion in cash, but they also have the liabilities, those gold certificates they sold to the Federal Reserve. And of course, they still have the $37 trillion in debt they started with. But what they can do is effectively buy down the debt. So they take it from $37 trillion to $32 trillion. Now, I know a lot of you write about it and are kind of scratching your head and saying, okay, George, I thought this solves the debt problem or the debt crisis. They still have $32 trillion for heaven's sakes. It's not like this takes it down to zero. And you would be correct. Right now, the debt to GDP for the United States is around 120%. And this is what's got us in this crisis mode. But a lot of these high-level thinkers, like Luke Groman and many others, believe that if we could just get the debt down to about 60% to 70% of GDP, historically speaking, this would dodge the bullet. And this would take us from a point of crisis back to a point where the debt of the United States is sustainable. And this is really the key. It's not about taking the debt from 120% of GDP all the way down to zero. It's just getting us back to a position where we're not having to worry about the supply-demand imbalance in the Treasury market. I know some of you write about it now that are really, really paying attention are looking at this and saying to yourself, OK, George, the GDP of the United States right now is about $30 trillion. And if you and Luke are telling me that we could get it down to $32 trillion, I don't need artificial intelligence to know that $32 trillion is higher than $30 trillion. So how does this get us back to the 70% that would be sustainable and the key to all of this working? And this is a great observation. But what we haven't gone over yet and what I'm going to go over in step number three are the knock-on effects of revaluing gold. And unfortunately or fortunately, however you want to look at it, those knock-on effects are what would take the debt to GDP of the United States down to 70%. Unfortunately, we would have to pay a very, very steep price. Remember, at the end of the day, there is no free lunch. Step number two. So does the Treasury and the Federal Reserve, the government, have the authority to actually do this? And the answer, like we said before, is unequivocally yes. Now here is where I've got it. I think I misspoke in step number one. It's not the Fed Monetary Policy Manual. It is the Fed's Financial Accounting Manual for Federal Reserve Banks. And very recent here. This is May 2025. This is why you watch the George Gammon channel to get all the insider intel you're not going to find anywhere else in these source documents that are hidden deep in the bowels of the Fed's website. All right. They probably don't want you to know about. And they definitely don't want Yahoo's like me talking about it on YouTube. So here we go. Section 2.10. Right here in plain daylight. This isn't some sort of conspiracy. Gold Certificate Account. The Secretary of the Treasury is authorized to issue gold certificates to the Reserve Banks to monetize gold held by the U.S. Department of the Treasury. Ta-da! They're not hiding it. At any time, Treasury may reacquire the gold certificates by demonetizing the gold. I think it's interesting that they're actually using the word monetizing. They're just, well, yeah, that's what we're doing because that has negative connotations. And I think what is really interesting and quite telling is if you look at the example balance sheet they give in this Fed Accounting Manual for Federal Reserve Banks, we see that on the asset side of the balance sheet you've got things like Treasuries, mortgage-backed securities. This comes as no surprise. But the very first thing they list on the balance sheet isn't the Treasuries. It isn't the mortgage-backed securities or the account they have for it. It's the account they have for the gold certificates. So if you're one of those people that clicked on this video and thought, oh, well, this has got to be some sort of conspiracy theory or this George Gammon and Luke Groman that are just making these wild claims that are unsubstantiated. They don't have any proof for this. Well, for those people, I would direct you right to the interwebs. You can pull this up yourself. Go right to the Fed's manual and you will see that revaluing gold to $20,000 an ounce and monetizing it to try to solve the debt problem is just as legal as doing quantitative easing. Step number three. So what's the downside to solving the United States debt crisis by revaluing gold up to $20,000 an ounce higher? And do I think the government is actually going to do this? First and foremost, before we get to the downside, let's go over the upside, which is the gold bugs would get rich. Not just rich. Their wildest dreams would come true. They'd be like Scrooge McDuck just swimming in all of their gold coins. But according to Luke Groman, this would likely take us right into a doom loop. More on that in just a moment. But before we go into the doom loop, let's look at how the government collects money and spends it right now. Currently, they'll tax the average Joe and Jane or they will go ahead and sell them treasuries and the government will take that money, and I'm oversimplifying here, but then they'll spend it into the real economy, giving it to them or Moody. Now, you'll notice I said them because I don't know Moody's preferred pronouns. Shut up, Moody. Nobody cares about your stupid preferred pronouns. Just take your blue hair, go back to your little safe space and let us get on with more serious stuff with this whiteboard video. Okay, so the bottom line is the government takes money from the average Joe and Jane and spends it into the real economy. You'll notice here that no currency units were created. We don't have any additional currency units. We're just taking them from over here and putting them over here. But if the government revalues gold and then the Fed monetizes this gold, we would have a lot more currency units. In fact, we'd have five trillion more currency units. So when the government, your drunk, insolvent Uncle Sam, takes those currency units, those dollars, and spends them into the real economy, and he'd be doing this by giving the five trillion dollars to the treasury holders that are allowing those treasuries to mature instead of issuing new debt. And let's not remember, this guy right here, he represents the Scrooge McDuck gold bugs that are now as rich as all the Bitcoiners. So now they can compete for those Lambos. So anyway, we've got the additional purchasing power with all the Scrooge McDuck gold bugs, and we have five trillion of additional purchasing power with the people who allowed those treasuries to mature and didn't buy new treasuries, so now they have this cash in the pocket. They spend that out into the real economy. What happens to prices? You guys know the answer. They go straight up from $5 to $10 here on this for sale sign. And what does that do to interest rates? 10-year treasury, 30-year treasury. Well, likely those interest rates are going to skyrocket. Well, this takes us right back into a similar debt crisis we talked about in step number one where the interest rate on all the government's debt, even though it was only 70% of GDP, would be so high that it would put them into an unsustainable position. So then the Fed has to come in and buy those treasuries. Luke Grohman talks about yield curve control. So let's just say they peg the long end of the curve at whatever, 2.5%. So the Fed would have to buy every single treasury or as many treasuries as necessary to make sure the interest rate on the 10-year treasury never went above 2.5%. Wait a minute. Where is the Fed getting this money? Well, the Fed, and I'm oversimplifying here, would print this. They would create it out of thin air that goes into the coffers of your drunk, insolvent Uncle Sam. And that's what they're spending back into the economy. But this is brand new money. This adds to the amount of currency units opposed to the way they're doing it over here where it doesn't increase the amount of dollars that are chasing goods and services. They see what happens is they revalue. This creates inflation. This creates higher interest rates. The Fed has to monetize the debt in addition to the gold. They have to do yield curve control. And effectively, and again, I'm way oversimplifying here for the sake of this video, but that creates more currency units going to Uncle Sam that didn't exist before. He spends those out. That creates higher inflation, higher interest rates, and then you're in this inflationary doom loop that's almost impossible to get out of. So do I think this is going to happen? Well, let me answer that two ways. First, does the government need to do this? The answer, in my view, is no because this whole theory is predicated upon the supply of treasuries mattering. So if the supply goes higher and higher and higher and demand stays the same, then interest rates will go up. There's going to be no buyers for the U.S. debt. Interest rates continue to go higher and higher and higher. This is the argument for why the debt to begin with is unsustainable. But I don't think supply really impacts treasury yields. Editor, go ahead and throw up a chart of interest rates in the 10-year treasury going back to 1980 and then also throw up a chart of the United States debt and you can see they're actually inversely correlated. And there's a very good reason for this, but we'll have to save that for a topic of a completely separate video. But do they need to do this and will they do this are two completely separate questions. So my base case would probably be they won't because it is a little extreme, although I would never put it past Trump, that's for sure. But I would say, if I'm giving it a probability, if this narrative becomes more and more and more prevalent throughout the mainstream media to the point where it's going to impact voters' decisions in, let's say, the midterm, then I think the probability of the Trump administration revaluing this $20,000 an ounce, if not higher, would probably be at least 10%. Because, again, this is something that's very easy to do and they have just as much authority to do this, monetize the gold, as they do to do quantitative easing and buy treasuries. And if I would have suggested to you that the Fed was going to do quantitative easing way back in 2007, you would have told me that the probabilities were almost zero. But we know what happened over the last, let's just say, 15 years. We've had the Fed's balance sheet go from $800 billion all the way up to, at its high point, almost $9 trillion. And it's at the point now where quantitative easing is no longer something that's a conspiracy theory or something that's an extreme policy that the Fed would never do. It's actually part of their normal toolkit. So in the future, why wouldn't their normal toolkit also include buying gold certificates or monetizing gold, just like they've monetized treasuries and mortgage-backed securities? Oh, but wait, there is more. It's not all fun and games for the gold bugs in this scenario. Why is that? Because if these gold bugs are storing their gold and the value goes up substantially, what's going to happen to their storage costs? It's going to go up at the exact same rate. And where are they going to get all of this additional cash flow? It might force them to sell. Well, actually, for those Scrooge McDuck gold bugs, I've got a solution for them. And it's something that I'm doing right now with my own personal gold. It brings me to the sponsor of this video. It's Monetary Metals. This is a company where you actually store your gold with them and they pay you an interest rate paid in gold. I know it sounds too good to be true, but I can assure you, it's real. And I've had an account with them over the last maybe three or four months, and it's going extremely, extremely well, which is why I agreed to have them on as a sponsor. So if you want to find out more about how you can get paid on your gold instead of having to pay these outrageous storage fees, that if gold goes to $20,000 an ounce, will go way, way, way higher, you can check out Monetary-Metals.com forward slash Gammon. If you want to find out more about how their business model works and how they're able to pay you an interest rate in gold, you can check out the explainer video that I have in the description of this video. Again, you can check them out at Monetary-Metals.com forward slash Gammon, or if you want to, just give them a call. Tell them George sent you. They're very, very nice. They can answer all of your questions to see if Monetary Metals is a good fit for you.