Transcription
The United States government owes more than $37 trillion. And this has created a debt problem for our government. Why? Because that means your tax dollars are being used to pay interest on all that debt instead of giving you more services. And it's gotten to the point where people have even proposed printing money to make the debt payments. And this is where President Trump has been proposing a new plan to help pay off this debt involving gold and involving crypto. And most people have no idea of how this plan works or the implication of this new plan on your money. If it works, it could change the future of the United States economy. And if it fails, well, let's just say nobody wants to see that happen. And that's why in this video, I want to show you President Trump's new plan to help pay off the national debt using gold and crypto and what this can mean for the economy and your money.
Here's a quick summary of the problem that we have. The United States government generates tax dollars from people like you and me who pay taxes. And then the United States government will then go out and spend all this money. Where do they spend this money? They spend it on the military. They spend it on welfare. They spend it on healthcare. They spend it on a whole bunch of things. But the problem is that the United States government has been spending more than what they're generating from taxes. And so to supplement all these tax dollars, the United States government then has to go out and borrow this debt. In 2025, it is anticipated that the United States government is going to borrow around $2 trillion of debt, something around $5 trillion of taxes. That way, they can spend around $7 trillion in 2025.
Now, the reason why this is becoming a problem is because all of this debt is being stored right here, our national debt. And right now we have over $37 trillion of this national debt sitting in a pile that the United States government has to pay interest on every single year. And the amount of interest that the United States government is paying is going up because number one, we have so much national debt and because well, interest rates have gone up a lot since 2020 and 2025. Sure, we're not at the peak of interest rates, but they've gone up. So, there's a lot of money going from taxes just to pay off that debt.
And this is where, in order to fund a lot of this debt, the United States government has been working with our central bank, the Federal Reserve Bank, to print this money out of thin air. That way, the Federal Reserve Bank can then lend this money to the United States government. So, money gets created out of thin air, the value of the dollar goes down, inflation goes up, causing this problem, and now we have a few different potential solutions. More specifically, there have been talks about three different things. Number one, there's been talks about gold revaluation. I'll explain what that means. Number two, there's been talks about the Bitcoin Reserve. And then number three, there's been talks about the Genius Act. So, let me break this down and what this means for you.
Starting with number one, gold revaluation. On August 1st, 2025, the Federal Reserve Bank published this official reserve revaluations, the international experience. And what this report says is that the United States government is sitting on a lot of physical gold. And on the United States financial statements, this gold has a very low valuation. But if the United States government were to change its financial statements to make that gold more valuable, well, now the financial problems for the United States government would be solved because now they have so many more assets which would solve this debt problem because then we can essentially borrow against those assets and then pay off this debt.
Take a read. According to the Federal Reserve Bank, the United States is sitting on a little over 261 million ounces of gold. And according to the Fed, it's valued at $42.22 per troy ounce. So, let's do some simple math. The United States government is sitting on 261 million ounces of gold. If you measure this gold at $422 per ounce, that means that the United States government has about $11 billion worth of gold. And this is where the Federal Reserve Bank is saying, well, maybe we don't need to use this $42.22 per ounce figure because the price of gold, the value of gold has gone up so significantly. So, if we change this number like the Federal Reserve Bank says to around $3,300 per troy ounce, well, now the math starts to look a little bit different. So instead of using this number, if we multiply it by $3,300 an ounce, well now if we take these two numbers and multiply them against each other, that means now the value of our gold is around $860 billion as opposed to $11 billion because of this accounting trick.
Why does this matter? Because this means that the United States government has essentially found $849 billion of free money. Now watch what happens next. The United States government can go to the Federal Reserve Bank and say, "Hey, Fed, we have this $860 billion worth of gold. We're going to give you a certificate saying that we own this much gold because we just changed the valuation. How about you give us, let's call it $800 billion in cash. It's not a loan. We just want to exchange this gold certificate in exchange for dollars. You can hold a certificate for the gold. Just give us the $800 billion in cash. We don't have to pay you back because it's not a loan. You're holding on to that certificate which is worth $800 some billion dollars." And now the Fed can give the United States government $800 billion that it can use to either pay off the debt or it can use that $800 billion to go out and spend into the economy.
What would happen if it spends this money into the economy? Well, then they could go out and create more jobs. They can fund more infrastructure projects. They can pay for more services. However they want to do it. And if those jobs and services create more income, they create more profit, that more income and profit would then create, remember this, more taxes, which would then go back into the government, which could then be used to help pay off the national debt.
Now, there's a couple key points that I need you to understand. The gold is not leaving the Treasury. Instead, what happens is the United States government is giving a certificate to the Federal Reserve Bank and the Fed says, "Okay, because you pledged the gold, here's spending dollars that you can spend based off of the value of that gold. It's not an actual loan. So, technically, the United States government doesn't have to pay this money back." We have seen this happen in the past. The last time this happened in the United States was back in 1934, right after the Great Depression, when FDR then revalued gold from around $20 an ounce to around $35 an ounce. This created a little bit under $3 billion of new spending power for the United States government to help stimulate the economy. Yes, I know this sounds wild, but it's something that the United States government is considering. And if your question is, "Well, Jasper, what happens if we pledge gold to the Federal Reserve Bank at $3,300 an ounce and gold prices fall below that?" Well, stick with me through this video and you'll see exactly what happens.
Which brings me to number two, the Bitcoin Reserve. Now, I do want to remind you that for those of you that are investors or want to become investors, I just put together a brand new investing master class where I walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. And I'll show you the exact strategies that my firm uses to help find and research investment opportunities. So, if you want to watch this investing master class, it's completely free, but you do have to register. And when you register, you'll also get market briefs, which is my newsletter for investors, as a complimentary bonus. So, if you want to get my investing master class and market briefs, all you have to do is click the link down in the description below to get it all for free.
Now, let's talk about this Bitcoin reserve because in March 2025, President Trump signed an executive order establishing a strategic Bitcoin reserve and a broader digital asset stockpile. Now, I think I know what you're thinking. If the United States government is already spending all of their money and then some because of debt, how in the world is the United States government going to go out and start buying Bitcoin? Where are they going to find the money to do that? Well, according to the United States Treasury Department, it's not going to go out and buy Bitcoin. Instead, it's going to use seized Bitcoin and use that seized Bitcoin to build our strategic Bitcoin reserve. Take a read at what the Treasury Secretary said. "We're not going to be buying that Bitcoin, but we're going to use confiscated assets and continue to build that up. We're going to stop selling that." So, if somebody's committing cryptocurrency crimes and the United States government seizes it, this is the cryptocurrency that the United States government is going to use to build the strategic reserve.
How much Bitcoin are we talking? Well, some sources say that the United States government has around 30,000 bitcoins in the reserve and other sources say that the number is closer to 200,000 bitcoins in the United States Reserve. In any case, this bitcoin used to be seized and then it would be sold off by the United States government. But now instead of selling off this Bitcoin, what the United States government is saying that they're going to seize this Bitcoin and then they're going to hold on to it like a long-term investment.
Here's why this matters. Because the United States government can do the exact same thing with this Bitcoin that they were doing with the gold. The United States government can now take this Bitcoin and value it at, let's just say, $100,000 a coin. We know that Bitcoin is valuable. Pick whatever number that you want, but they can value this at, let's just say, $100,000 a coin. And then they could take this contract and pledge it to the Federal Reserve Bank and say, "Hey, here's a contract of 50,000 Bitcoin at $100,000 a coin. And we're not going to sell this Bitcoin. Instead, give us dollars. That way, we can spend the value of this Bitcoin. And it's not a loan because we're pledging you these assets. It's just a certificate saying that we have this Bitcoin. So, give us these dollars."
Then the United States government has this cash that they can use to now either pay down their debts or they can use this cash to spend in the economy without raising the national debt to help stimulate the economy and potentially create more tax dollars. And then if things go well and Bitcoin goes up, let's just say to a million dollars a coin, well now the United States government still has those bitcoins and then it could do a potential revaluation of that bitcoin at some point in the future and then get more dollars out and then keep spending it. Essentially, what the United States government is saying is we don't want to keep selling off this Bitcoin because we're losing out on the upside of holding on to that Bitcoin because sources say that premature sales of seized Bitcoin have previously cost the government over $17 billion according to the executive order. So, the goal is for the United States to become a long-term investor, to hold on to this Bitcoin. Hopefully, the Bitcoin is going to be worth more money. That way, the United States government can then keep spending more dollars based off of the value of the Bitcoin without having to go deeper into debt because the United States government owns these strong assets. But there's a risk. What happens if the value of the Bitcoin falls? Well, stick with me. I'm going to get there.
Then we have item number three, which is the Genius Act. On July 18th, 2025, President Trump signed the Genius Act to help regulate stable coins in the United States. Now, this act does something very unique that we've never really seen done before. This act allows the United States government to essentially create stable coins, cryptocurrencies pegged to the value of gold or Bitcoin that can circulate in the United States economy as alternatives to the United States dollar. Now, I don't want to go too deep into this because there's a lot of theory and a lot of speculation on how this would actually work, but the whole idea of this is it could expand the money supply in the United States without actually increasing how much debt that we have.
But all of this comes with risk. For example, if we revaluate the gold value and gold prices fall from $3,300 an ounce to $1,500 an ounce, then what? Or if we value the Bitcoin at $100,000 a coin and Bitcoin prices fall to $50,000 a coin, then what? And if those two things happen, how would they impact the value of those stable coins?
Well, let's talk about the risk here with gold and Bitcoin. What the United States government is doing is they're giving the Federal Reserve Bank an IOU essentially saying, "Here's a contract that shows the value of our gold, shows the value of our Bitcoin. You can hold on to this contract in exchange. The Federal Reserve Bank is going to give spending money to the United States government." Again, it's not a loan because the Federal Reserve Bank is really just converting that gold or converting the Bitcoin into dollars. So, it's just taking the value of the gold, converting it to spending dollars. It's not an actual loan. But if gold prices or Bitcoin prices fall by 50%, well now what that means is that the Federal Reserve Bank is sitting on an IOU that's worth negative 50% because it's lost so much value. And this is sitting on the Federal Reserve Bank's balance sheet because the Federal Reserve Bank, like any company, has its own financial statements. One of those financial statements is the balance sheet, which shows the assets and the liabilities for the Federal Reserve Bank. And one of the things on the Federal Reserve Bank balance sheet are the loans that it issues to the United States government.
Because remember, the Federal Reserve Bank, although they're called the Federal Reserve Bank, they're not an actual bank because you and I can't go there to deposit money. They're not a reserve because they're not sitting on any cash reserves and they're not federal. It says so on their website. They're not a part of the United States government. So the Federal Reserve Bank then prints this money and lends it to the United States government. That's on the balance sheet. If they then create this money and give it to the government, well, that's on the Federal Reserve Bank balance sheet. And so if the Federal Reserve Bank balance sheet starts to look really weak because the value of the assets have fallen, well then that can undermine trust of people that are lending money to the United States government.
Why? Because the strength of our government is its ability to pay back its debt. Now, we know that the United States government generates money from taxes and then they go out and spend this money and the fastest growing expense for the United States government is interest. So we know that these interest expenses are going back to the lenders to the United States government. Well, who are the lenders to the United States government? It's regular people, people like you and me. It's wealthy people with big dollars, big institutions. It's foreign governments. And it's the Federal Reserve Bank. And so if people are concerned about the United States' ability to pay back this debt, that could be a problem because remember, the reason why the Federal Reserve Bank can always pay back the bills is because of two things. Number one, they can raise taxes or number two, they could have the Federal Reserve Bank print this money. And the Federal Reserve Bank has been printing money, which has created the concerns of inflation. But if the Federal Reserve Bank starts to have a very weak balance sheet because the assets that it has created this money out of have fallen, well now the Federal Reserve Bank doesn't look as strong and the value of these dollars don't look as strong and that could create less trust for the government's ability to pay back this debt, which could create more concerns. It could mean that people don't want to lend more money to the United States government and that could erode the entire financial system because well, the United States economy is the world's superpower. The United States dollar is the world's reserve currency and countries and companies around the world are pegging the value of their assets to the United States dollar. So you can start to see how that could create a really bad scenario if those asset prices fall.
And then the question is, if that were to happen, if asset prices like gold and Bitcoin were to fall and now the Federal Reserve Bank is underwater on their assets, what could potentially happen next? Well, you could see the government then want to create more money so people have more money to buy those assets and to stimulate the economy. That way, the Fed's balance sheet looks stronger. But now, as you're working to print more money from the Federal Reserve Bank, you could risk more inflation, which could risk more devaluation of the currency. So, it could create a whole cascade effect if the Federal Reserve Bank's balance sheet is not strong because the whole world is looking at this and they're looking at the strength of this to see where they want to lend their money and where they want to park their money.
I should also mention that no asset goes straight up. Take a look at gold prices. Gold prices peaked in the mid-1990s and then they crashed until the mid-2000s and in the mid-2000s, that's when people were concerned about the real estate market and the state of our economy and that's when gold started to rise and gold prices really peaked in 2012 because that's when we were having quantitative easing and all the money printing to stimulate the economy. So people were concerned about inflation and hyperinflation and all that other stuff. But then in 2012, it became clear the hyperinflation was not happening and that's when gold prices crashed and then they stayed down until 2020 when the pandemic crash started and that was when people got concerned about inflation again because of all the money printing that was happening and that's when gold prices rallied and now gold prices are at a high again. We can compare that to Bitcoin prices. I mean, Bitcoin has only been around since around 2009. And you can see that Bitcoin has been very volatile with some big swings up and down.
So, what does this mean for you? Well, this is where real diversification can be very useful. And that real diversification could include things like physical gold. It could include things like Bitcoin, but that can also include things like buying physical real estate, not just for you to live in yourself, but to rent out to other people because that real estate has a real value. Somebody can live in there. They can see, feel, and touch the real estate and it can produce income for you or even stocks because stocks are companies that are working to produce value. They're working to produce profits. They're working to produce equity which has value to the owners of those assets. So this is where real diversification as an investor can become very crucial because well, there's a lot of changes happening in the economy and I want you to be aware of some of the things that are happening behind the scenes because a lot of times we hear about these things in passing and a lot of people have no idea what these things mean because they can be extremely confusing and I don't know if that's unintentional or intentional because if the average person knew about what was happening, well chances are people would be asking more questions. Well, hopefully after this video, you have a better understanding of what gold revaluation looks like, what the Bitcoin Reserve looks like, what the Genius Act looks like, and you have a better understanding of what could be coming. Again, we don't know what is going to happen yet, but we know that this national debt is a concern. We understand that the United States government's ability to pay back that debt is a concern. And we know that there are different proposals out there that could work and that would be great for the economy, but they could also not work, which could create more risks and I want you to understand what has happened. That way you can be a more savvy investor. And again, if you want to become a better investor or if you are an investor and you want to watch my investing master class and get market briefs, I have that link for you down in the description.
In the early 1970s, the United States government had borrowed so much money. President Richard Nixon severed the tie between the United States dollar and physical gold. "I have directed Secretary Connley to suspend temporarily the convertability of the dollar into gold." Now, if you notice what he said, he said this was temporary. And here we are 54 years later and the dollar is