VBL’s Ghost: The Case for Revaluing Gold, and Retiring US Debt with it

VBL’s Ghost
@Sorenthek

1- The Case for Revaluing Gold, and Retiring US Debt With it- Feb 13th, 2025

2- HOW GOLD WILL BE MONETIZED
3- SWF: AS A DEBT RETIREMENT FUND
4- SCOTT BESSENT’S HAMILTONIAN HYBRID
5- SOURCES
6- FOOTNOTES

Directly relates to @matthew_pines recent post. He’s right.

2- HOW GOLD WILL BE MONETIZED

Revalue Gold >> Borrow 800BN at 0% >> Buy 5% US Debt

1 – Mark Gold to a more realistic price- Reset the Gold
2 – Borrow (not sell) against the Reset price- Monetize the Gold
3 – Retire US Debt with the windfall using a QE/sinking fund concept – Reduce the Debt

Gold has always been tied to Bonds for true finance people. This is the way to re-express that tie without demoting either asset. Bet on ourselves. The world will follow.

3- SWF: AS A DEBT RETIREMENT FUND

On the day Trump initiated a Sovereign Wealth Fund (SWF) process, Scott Bessent made it clear he wishes to monetize US Assets.

“We’re Going To Monetize The Asset Side Of The US Balance Sheet”

Why would Bessent say that on the day Trump announced intentions to create a Sovereign Wealth Fund?

How does Trump’s SWF (investments to be made) help “Monetize” assets we already own? By using the proceeds from a soon-to-be monetized asset to buy something else.

Grants gave us part of the answer. The Sovereign Wealth Fund might serve as a Sovereign Bond Fund.

4- SCOTT BESSENT’S HAMILTONIAN HYBRID

First create a SWF with only one purpose, to serve as a Sinking fund to reduce US debt.

Mark up government gold to the current price and Fund the TGA with it.

Enable the Fed to substitute that new carrying value and earmark those funds purposed for one thing only (figure it out).

The TGA funds the SWF6 (now a Sinking Fund) to Buy US Bonds with the increased buying power (figure it out).

Borrow against properly valued property (Gold) at zero percent to retire 5% debt. Every business and household in the USA already does it.

Details aside. This is the Way.

5- SOURCES:

– Alexander Hamilton’s Postal Sinking Fund

– Treasury Secretary Bessent: “We’re Going To Monetize The Asset Side Of The US Balance Sheet”

– Robert Hamilton, An Inquiry Concerning the Rise and Progress, the Redemption and Present State, and the Management of the National Debt of Great Britain and Ireland, 3d ed. (Edinburgh, 1818), 137-140

– Edward A. Ross, Sinking Funds (Baltimore, 1892), 10-11.

– Grant’s Interest Rate Observer Vol. 43, No. 3 @GrantsPub

– Letter from Alexander Hamilton, Concerning the Public Conduct and Character of John Adams

6- FOOTNOTES:

1
The phrase “The Gold reset is a process, not an event” is displayed atop almost every GoldFix Morning Rundown show for over two years.

2
The various ideas for gold remonetization ( good as they are) out there will either not work or scare the government too much to permit.

Throw gold on the Yield Curve – @TFL1728

Logistics nightmare delivering Gold. If cash (tracking bond) only, then hinders gold price discovery..

Subject to defending anchor and risking being weak versus actual Gold.. its Fiat. unintended consequences might be big.

Gold Bonds giving owners the option of Dividend vs Physical- Judy Shelton et al.

Perfect free market idea. Scares the c**p out of control freaks however.

Releasing Gold into the wild could have Giscard bond type risk if another unforseen event were to occur as it did uner Giscard.. they will likely not risk a global asset tied to a domestic asset being manipulated by someone else.

Then there was this key rebuttal to Gold bonds, from Jan. 2024 by a Real Estate C-Suite type ( and GoldFix Founder) who is simultaneously a gold bug and a Dollar realist: “Why in the actual fuck would the USA issue Asset backed Notes?… When we can still easily issue NON-Asset backed Notes?” He’s 100% right. Why would the US launch asset backed bonds to compete with its own bonds especially when everyone was willing to buy NON ASSET Backed ones.

3
Before you do all this, Buy more gold. We think they are doing that right now.

4
Regarding Monetization: Monetizing an asset does not necessarily mean selling that asset as implied by conventional wisdom best argued here:

“FYI, for those interested in the US revaluing its gold or “writing up gold” to some new price (say $15k), it does not replenish the TGA so that the Treasury Secretary can then just spend this newly found money. “Writing up gold” does just that. And only that. It increases the value of the gold sitting on the Gov Balance Sheet. If the Treasury Secretary then wants to “spend” this new windfall they would need to sell the gold to get USD for it and then they could spend the USD. Which would be counterproductive bc maintaining the “new” gold price at $15k involves “buying more Gold” (not selling it) at this newly pegged price. – SantiagoAUFund January 30, 2025

5
Hamilton’s sinking fund contained a limited redeemability clause- and was meant to begin operation only when genuine reduction of debt was possible. Hamilton never meant it to enable deficit spending.

6
The TGA could fund a SWF one of several ways. A Gold revaluation would fall under a ”Windfall” scenario.

Surplus Federal Revenues: If the federal government were running budget surpluses (rare in recent decades), excess revenues could be directed into a SWF.

Proceeds from Asset Sales: The Treasury could transfer revenues from the sale of federal assets, such as land, mineral rights, or infrastructure.

Windfalls: Unexpected fiscal gains (e.g., spectrum auctions, financial crisis recoveries) could be redirected into the fund.

Borrowing: Treasury could issue bonds specifically to seed the SWF, though this would increase national debt.

7
if this happens, now we know why the USD strength has had no effect on Gold. They support each other in this scenario.

Source(s):
https://x.com/Sorenthek/status/1912875239295365297

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