Revaluation – Historical Precedent
The author describes the historical revaluations throughout US existence. There is little doubt there is going to be another monetary adjustment in the US(and probably globally.) There are three components yet to be announced. When? Anywhere between now and early 2026. Given everything going on in the bullion markets, sooner seems likely.
At what price? This is the big one. Will it be the current market price at the time of the announcement, or some much higher price that gives the govt. the ability to offset a larger share of the national debt, on the accounting books. The third component that isn’t being disscussed is, will there be a changeover back to a new gold and silver standard announced at the same time? That is very important especially if a much higher gold price is going to be adopted.
Many so called experts argue that any revaluation to current prices would devastate the banks and be inflationary. That may have been true if we were on a gold standard like 1933. It would not do either. Marking up the gold price is irrelevant, to everyone except those owning gold already, because we aren’t currently on a gold standard. It would just be officially recognizing and announcing to the world what has already taken place over the last 50+ years. That the dollar has lost over 90% of it’s purchasing power.
A revaluation without a return to a gold and silver standard, would be worse than doing nothing. You acknowledge the problem but do nothing to fix it. A return to a hard money system would end the debt and inflation spiral. If done in conjunction with a revaluation, it would allow a much higher revaluation gold price because a larger percentage of the outstanding debt would be offset on the accounting ledger. The key is refinancing the debt using gold backed bonds
Another possible adjustment would be to officially reinforce a more reasonable gold to silver ratio, as has been done often in earlier US history. The gold will back the reduction of the debt and the silver will once again be used for everyday commerce and transactions. https://goldseek.com/article/gold-revaluation-means-dollar-devaluation