The truth is, there’s no such thing as gold revaluation. Gold is a metal. It’s a thing that’s in the crust of the earth, and you dig it out, and the market values it, and whatever it values it. You can’t revalue gold by fiat, by dictate, by diktat, by order. But what you can do is revalue the dollar, because the dollar is an invention. Really, it’s not even dollar revaluation, because if the dollar is an honest derivative of gold, meaning it is backed one-to-one by a certain amount of gold that is not messed around with, then there is no revaluation, because if it’s a one-to-one derivative, then dollar revaluation would be gold revaluation.

You can’t revalue gold, the market values it, whatever it values it, in terms of other goods and services, of course. And so what are we really talking about when we say gold revaluation? Well, the Federal Reserve’s balance sheet consists of certain assets. One of those assets is gold valued at $42.22 an ounce. That gold really belongs to the Treasury, but it is on the Federal Reserve’s balance sheet. The rest of the balance sheet is all paper. It’s all different forms of debt. Most of it is Treasury debt. Some of it is mortgage-backed security debt.

Some of it is other debt to the Fed. And what we call colloquially the dollar is the cumulative sum of everything on the Fed’s balance sheet. And now, since gold cannot be revalued, and the dollar is really the sum of every asset on the Fed’s balance sheet. As the Fed issues the dollar, therefore, the definition of the dollar that we call the dollar is everything that is on the Fed’s balance sheet. And so when we talk about gold revaluation, we’re not really even talking about dollar revaluation. We are talking about debt revaluation because that is what can actually be revalued.

When you say you are not going to pay your debt anymore, your debt becomes worthless. And so what really is a gold revaluation? It’s a debt revaluation. It’s a debt default. And when the debt is no longer paid because it is only paid on a certain pro-rata rate relative to gold, which is the actual money, then the debt loses value. And since almost all dollars today are representative of all of that debt, when that debt loses value, the purchasing power of those dollars goes away. And now we can call it colloquially gold revaluation because when it does happen, and it will happen either by market forces or by diktat, when it does happen, nothing happens to the physical assets in the world.

What happens is that the purchasing power gets sucked out of all the debt, which will no longer be paid at the same gold rate, and it gets shoved into gold itself. And so it looks like a gold revaluation, whereas it’s not the gold that’s being revalued. It’s the debt that’s being revalued. And as a result, all of the debt holders, meaning all of the dollar holders, have much less purchasing power and all of the purchasing power that they lose goes into the gold holders, the money holders, the money owners. Let’s go into the slides and help you get a better idea about what is actually going on here and let you wrap your head around it like a blanket.

Blankets everything. Exactly. This is everything. We need to learn how to see the blanket truth all the time. When you get the blanket thing, you can relax because everything you could ever want or be, you already have and are. All right, people, this chart I got from Daniel Oliver of Mermechan Capital, his latest piece, which is called gold revaluation, which is an Orwellian term for debt revaluation. But anyway, he has this chart and I say here that gold revaluation in quotes doesn’t revalue gold. It revalues the dollar, which is mostly treasury debt.

Here we have gold as a percentage of Federal Reserve assets. When people talk about the price of gold and has to back all dollars, what they really mean, even though they don’t mean it, is that it has to back all base dollars. The Fed is responsible to printing base dollars, and then those dollars go into the banking system and the banks can pyramid more debt on top of that dollar debt that is owned by the Fed. But when we’re talking about a 100% backing of the dollar, we’re not talking about the M2 money supply, we are talking about the Federal Reserve’s balance sheet.

So up here is 100%. Let me move my beautiful face out of the way. 100%, we reached 100%, we actually reached 130% in 1980. We did reach the 100% mark, meaning the market price of gold in dollar terms was able to back the Federal Reserve’s assets by 100%. It was actually above 100% when we reached 872. On the morning of January 21st, 1980, we hit 130% backing. And from there, we’ve headed down ever since. You can see where we are now, we’re about what is it, like maybe 5%, 6%, 7% gold backing at the current market price.

So there’s a long way to go for the gold price here in dollar terms. This is the statutory rate at $42.22. It’s now at 0.1%. So there is plenty of room to go on gold and it’s not too late to buy that you can see here. If you go to the next slide, this is what Daniel Oliver has said in his latest publication called Gold Revaluation. The link will be in the description below for those who want to read the whole thing and I highly recommend it. So this is the self-destruct button.

See this button? Don’t touch it. It’s the history eraser button, you fool. That’s how we talk about auditing the Fed. There’s rumors of Ron Paul maybe auditing the Fed. Elon Musk is supporting it, but you should know that auditing the Fed will be the prelude to ending the Fed. And ending the Fed means ending their unit of liability, which is colloquially known as the US dollar. Ending that unit of liability will leave the purchasing power of everyone who has those things down to zero and they will be left with whatever physical assets they have left.

So it will not be painless ending the Fed. It will be very painful for a lot of people who own a lot of the Fed’s liabilities, meaning if your bank that holds your deposits goes bust, then you have no more deposits. And if there is nothing to bail them out with, you will lose your deposits. So the end of the central bank means everybody loses their dollars. Uh, so what does he say here? This is very exciting. It’s also very scary. Just because the treasury will instinctively defend the Fed, it does not mean it will not eventually surrender to the market.

However, indeed, says Daniel Oliver, if defending the Fed allows Congress to continue its profligate spending, then like the gold pool in the 1970s, the treasury’s efforts will unleash the financial forces that will overwhelm it. This is when the legal distinction between the Fed and the treasury and owning gold versus owning a claim on gold will manifest. What he’s talking about here is the Fed does not own the gold that’s on its balance sheet. The treasury does. And this puts a fork, a wedge between the Fed and the treasury because the gold is on the Fed’s balance sheet, but the treasury owns it.

And when both institutions are in a lot of trouble and they both need the gold, the treasury has dibs on it because they actually own the gold. Whereas the Fed only writes claims to the gold on its balance sheet. That’s what he’s talking about here. And what he’s essentially saying is when their balls are to the wall, whatever the saying is, this is where the famous expression balls out comes from a balls to the wall. That’s another whole different one, but balls out comes from steam engines. The treasury will seize the gold.

Next sentence here. The US has already allowed two previous central banks to dissolve. That was under, I forgot who and Andrew Jackson. I forgot what the first one was. Was it Hamilton? I think it was Hamilton. The other one was Andrew Jackson, the closest we had to a libertarian president ever. Why not shutter a third central bank if supporting it becomes too costly to maintain? Because the Fed is a creature of Congress and the treasury is part of the government, the Fed is only a creature of it. The treasury has priority on the gold that is supposedly in Fort Knox.

And let’s not discuss whether it’s actually there or not. I really have no idea. Next paragraph. And this is the scary one. And what a wonderfully populist move it would be to allow the Fed to fail. The US could issue currency directly in the form of gold back 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 US empire and exorbitant privileges. This will be a very painful process. And however it happens, the remaining purchasing power will be shunted into gold and silver. Now, what Mermechan is saying here, what Daniel Oliver is saying here, essentially, is that the treasury could restart a currency system based on the gold that it owns in Fort Knox and redistribute a currency based on that.

That would be a kernel with which to restart a division of labor. But anyway, let’s continue here. There are fewer bills being issued now. Bills are the short term debt that allows the reverse repos to come out into the banking system. This is a different topic now. This is an article from Bloomberg. Fewer bills are being issued thanks to the debt ceiling getting closer and closer and then running out of ordinary measures, extraordinary accounting measures. So here we have the treasury bill. It has peaked. That is the amount of treasury bills outstanding.

It’s about 6.5 trillion. It’s not going to get any higher. And that means that reverse repos are headed back up. This is a paragraph from that same Bloomberg article. Link in the description below, if you want to read the whole thing, this will suck out liquidity and speed up the final crunch. This is what I said a few videos ago that the spending cuts by Doge and by Musk are great, but they will speed up the final liquidity crunch. This is the key paragraph. Treasury is starting to trim supply, meaning bill supply, as the tax date approaches and as the debt ceiling constraint becomes more binding, said Gennady Goldberg, head of U.S.

interest rate strategy. It’s a great name for a debt guy, Goldberg. Rate strategy at TD securities. We expect bills to gradually become more scarce as the debt ceiling becomes more binding, richening. Is that a word? Richening. It’s enriching, right? You can say that both. Riching, richening, enriching. I don’t know. Biggings. Never heard that word before I moved to Springfield. I don’t know why. It’s a perfectly cromulent word. Bills and likely increasing the use of the Federal Reserve’s reverse repurchase agreement facility, meaning if they don’t issue more bills, there is nowhere else for that money to go except back to the Fed into the reverse repo facility.

And that is what’s probably going to happen. And as the money goes into the Fed, it goes out of the banking system, decreasing liquidity, increasing the probability of a final dollar crunch, which will eventually happen anyway. And this could be the cause of it. This is probably as low as we’ll get for the reverse repose. We’re at 67.67 billion. That’s a perfectly symmetrical number. I like it a lot. I don’t think it’s going to get much lower than this. And it’s going to head back up now until the debt ceiling is raised. And it’s going to cause the final crunch, I believe.

You must believe, boy. You must believe. There’s also a lot going around about the GLD and SLV ETFs, about borrowing rates, about a short squeeze, about this and that. But let’s look about what’s going on with these ETFs as gold is flowing from London and Switzerland into New York. And that flow has not stopped yet. What is happening to these ETFs? Well, back in 2020, when gold was flooding into New York, it was flooding into the ETFs. Now it is flooding out of the ETFs. We saw that yesterday, actually, a decrease of 170,000 ounces.

You can see here negative 0.17 million ounces. That’s 170,000 ounces. And I put a red line here for the amounts of gold that was drained out. You can see the red line going down here. So this is gold going out. And this is the third biggest GLD redemption this year. So gold is headed out of this ETF, even though the gold price is headed higher, meaning the retail market is really not interested in this rally, which is a good sign that it will continue. And also, you can go into SLV. Last week was actually the fourth biggest silver redemption day.

One day last week. I don’t remember which day it was. The fourth biggest silver, the biggest silver redemption day in SLV history. This is all of the history of SLV going back all the way to 2006. I drew a line here where the latest redemption was over here, and this end of the line here in the right side in 2025. And you can see there were only bigger redemption days in 2008, right before the financial crisis, in 2011 at the Silver Peak in May and right after Silver Squeeze. Here’s Silver Squeeze right here.

And these incredible increases in the SLV physical silver holdings. If that was legitimate or not, I don’t know. You could do your own research and have your own opinion. Those are the only times when we had stronger redemption days of physical silver. So there’s a big demand for physical silver, not so much demand for SLV. And then my friends is what is happening. There will be a gold revaluation. It will either happen organically by the market itself, otherwise known as hyperinflation, or it will be statutory, which will be the government itself giving up and devaluing its own debt.

Gold revaluation is really debt revaluation, or in other words, debt devaluation. You don’t want to own debt as money. You want to own money as money so that the loss of the purchasing power of the debt holders, that is inevitable. You see, the new world is inevitable. It’s what? Inevitable. One more time? Inevitable! Damn it. Open your f***ing ears. Goes and floods right into your wallet or into your holdings or wherever it is that you have your gold and silver. Silver will also benefit because once nobody trusts the gold derivative anymore, there is no way to divide gold on a retail basis except with physical silver itself.

When we see physical silver go to 15 to 1 ratio or around there, that is the final bell of the endgame that will be ringing. And that is when you want to take your physical silver and spend it on anything you can find. Because you won’t get better rates than that ever. This is Raffia, the endgame investor. Check out the substack if you want gold and silver. Call Miles Franklin at the link in the description below. And if you want to store your gold and silver in a dirty man’s safe, use the code endgame10 at checkout for 10% off.

All are great ways of supporting this channel. And I’ll see you guys next week. And maybe the dollar will be dead by then. Who knows?
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