The Golden Rule

You may remember when incoming Treasury Secretary Bessent said, “I think we’re in a long-term bull market in gold. We’re seeing reserve accumulation by central banks.  I follow it closely. It’s my biggest position.”

President Trump has often cited the monetary variation on the Golden Rule, first popularized in a comic strip called Wizard of Id.

“Whoever has the gold makes the rules.”  The expression has taken on a life of its own.  It appeared in the Netflix miniseries The Fall of the House of Usher in 2023.  It was cited in the 1992 Disney movie Aladdin by Jafar, the Sultan’s advisor: “You’ve heard of the golden rule, haven’t you? Whoever has the gold makes the rules.” 

The expression has entered our culture and is popular because the truth of it resonates.  

The United States is the world’s largest debtor, with $38 trillion of red ink on its books.

Total global government debt is estimated as just below $100 trillion.  So Washington owes more than a third of it.  It is more debt than can honestly be paid.  But as the Deep State Money Manipulators know, given enough inflation the real value of that debt can be reduced.

So who ends up paying off the debt under that scenario?  The American middle class, of course.  Their dollar savings and the dollar-denominated benefits they have come to depend upon may may be met in nominal terms, but the money they receive will buy sharply less.  The dollars that pay Washington’s debts are cheaper dollars.  The peoples’ wealth is diminished to the extent that the overhanging government debt is devalued

Of course the US is not the only country to practice the dark art of currency depreciation.  Governments throughout history and around the world know the routine perfectly well.   They know precisely what the US will do.  That is why so many of them are building reserves in gold, not dollars.

And that is why we recommend that you visit a Republic Monetary Exchange gold and silver specialist today.    

Because he who has the gold makes the rules!