The Myrmikan Monetary System Self-Destruct Button

Daniel Oliver suggests Trump might actually push it, kill the Fed, and restart the monetary system with gold-backed Treasury notes.

Daniel Oliver just published a piece on gold revaluation. It's a bit technical, but here's the key paragraph. It's on the Trump administration theoretically allowing the Fed to fail and then backing a new debt issuance with the gold in Fort Knox. I think this is unlikely, but I also thought Trump getting elected, kicking all the Arabs out of Gaza and building hotels there was unlikely too until he said it out of the blue last week. So who knows? Anyway, this is heavy, so take a deep breath. Oliver writes:

And what a wonderfully populist move it would be to allow the Fed to fail: the U.S. could issue currency directly in the form of gold-backed Treasury notes and allow the Federal Reserve note to disappear. The indebted will be relieved, obligations to foreigners will be wiped out, wealth will be redistributed toward the productive and away from legacy holders of claims on assets, and the debt system that enriched the few will disintegrate, a modern jubilee. This is more or less what an uncontrolled unwind of the dollar system would look like. Perhaps not a terrible outcome for a populist like Trump, though it would come with much risk and collateral damage, such as the end of the U.S. empire and exorbitant privileges.

Oliver's point, if you read the whole essay and put the pieces together, is that the Fed does not exactly own the gold in Fort Knox that's on its balance sheet. It owns claims on that gold. The gold itself is owned by the Treasury, and so Oliver is basically saying that the Trump Administration, in a move to castrate the entire Deep State and bring it all down, could theoretically seize the gold owned by the Treasury (which FDR stole back in 1933, assuming it still exists), allow the Federal Reserve Note (what we know as "the dollar") to fail, and then restart everything on new notes fully redeemable for the gold in Fort Knox.

For stackers, there is no nafka mina, Aramaic for no practical difference. What we know as the dollar would be dead. The new currency that would circulate would be Treasury notes backed by the gold at Fort Knox after Trump lets the Fed die. Gold itself would have all the purchasing power anyway, and stackers would be fine assuming it's all survivable.

The nafka mina is for the Treasury and anyone the Treasury could pay directly, such as the army, but now we're getting into martial law possibilities, which I don't really want to dwell on and is above my pay grade. If the gold is really there and Trump wants to cut the damn Deep State tumor loose entirely, this is what he and his team would have to do. Have the bad actors hang on to the dollar, the liability unit of the Federal Reserve, kill the issuer and its client banks, restart the monetary system with the gold at Fort Knox, and hope you can keep the country together enough by paying the army with gold-backed Treasury notes until the division of labor is completely restructured.

It sounds clean, and maybe it is. But the collateral damage would still be enormous. It will still impoverish all those who only have only Federal Reserve notes or their derivatives, which are all the banks and all the retirees and basically 98% of the country that owns no gold.

Unfortunately, this Myrmikan self-destruct button may very well be the best option at this point. If this is the plan, I wish Trump and his team good luck. May God be with them, and God bless America.

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