Ambitious financial plan
Donald Trump announced an unprecedented step in the economic policy of
The United States: the creation of a Sovereign Wealth Fund and a Strategic Reserve of
cryptocurrencies. The news raised a key question among financial and political
circles: where will the funding for this initiative come from without
accumulating new debt without raising taxes? The answer, according to the presented
plan, which may lie in an old but resourceful strategy: revaluing gold.
Revaluation of gold as a source of funds
Trump assures that he will not use the issuance of new national debt, nor will he
increases taxes to fund the purchase of Bitcoin and the creation of
The Sovereign Wealth Fund. Instead, he intends to "create" money by revaluing
assets already owned by the federal government – specifically the gold ones
US reserves.
These reserves, held by the Ministry of Finance since 1934, are still
reported at a book value of just 42 dollars per ounce – far below current
market prices. Trump's plan is to update this value to levels close to
real market prices, which would create an accounting profit of approximately 700
billion dollars.
Similar operation already was performed. In the 1970s, gold was
revalued from 35 to 38 dollars per ounce, which allowed for the creation of 800
million dollars in new funds through a simple accounting operation. Then this money is
were transferred directly to the account of the Ministry of Finance in
The Federal Reserve. The same mechanism, but on a much larger scale, could be
used by Trump today.
At first glance, these funds do not enter the financial system directly. However,
when the government starts using them – for example, to purchase cryptocurrencies
– liquidity will increase. This would weaken the dollar and likely cause
The Federal Reserve to react by selling government bonds to absorb
excess liquidity, which in turn will raise interest rates.
This is exactly where Trump completes his move: with liquidity already pumped up, he can
selling debt at lower interest rates, financing the purchase of Bitcoin and creating
its strategic reserve—all this without raising taxes or initially
to increase the debt.
A bold move with global consequences
If this plan is implemented, it will have serious consequences for the markets. Gold
and Bitcoin will rise in value. The dollar may depreciate due to the influx
of liquidity, and exchanges are likely to react with moderate positivity.
Of course, for all of this to happen, Trump must receive approval from
the US Congress for two key steps: raising the national debt ceiling and
official revaluation of gold and foreign exchange reserves. If successful, it will realize a
of the most creative (and controversial) economic strategies in recent times.
Accounting wizardry or financial genius? One thing is clear — Trump has once again
shook the global economic stage.
