With all the discussion regarding the likelihood of a coming gold price revaluation, a number of commentators claim it would result in a major devaluation of the dollar and a surge in inflation. The mistake is similar to the one that some have been saying for years, that a deep recession would result in a deflationaary collapse.

They have the two backwards, because they are using past experiences and erroneously extrapolating to the present. In the 1930’s depression, you did have deflation because gold and silver were money.(gold standard) Currently, being on a fiat currency sytem means we have been having the inflation (decline in the value of the dollar) all along. A revaluation of the gold price would just be a final recognition of the inflation that already has taken place.

Further inflation would only occur if you stayed on the fiat currency system. However, the only point in having a revaluation, would be if you were going to switch back to making gold and silver money, again. While the result of the revaluation and return to hard money would leave the majority of the population devastated economically, (because most don’t own any physical gold or silver), it would benefit them going forward because runaway inflation would be halted.

Distribution of small amounts of gold and silver to the public would be necessary to mitigate the disruptions to the economy. So the dollar would not collapse, if it were to be backed or pegged to gold and silver, as part of any revaluation of the gold price. The two go hand in hand. The dollar wouldn’t collapse and you wouldn’t have runaway inflation.

You could have deflation, if you don’t inject a minimal amount of money(new hard money) into the hands of all those who don’t have any, as a way to mitigate the disruptions to the economy, that would otherwise occur. (the DOGE Dividend needs to be gold or silver)

The return to hard money and end of a fiat system, needs to be part of any gold price revaluation. One without the other, solves nothing.