Trump could be planning a radical reboot of the U.S. dollar

Currency reboot will see leading nationsdevalue their currencies against gold

New gold price would be nearly 8 times higher at $10,000/oz

Price based on mass exit of foreign governments and investors from the US Dollar

US total debt now over $80 Trillion $20T national debt and $60T consumer debt

Monetary reboot or currency devaluation seen frequently even modern history

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Editor: Mark O’Byrne

Source: Agora Financial

A new monetary standard which will see the dollar reboot and gold be revalued to $10,000/oz according to best-selling author and Pentagon insider Jim Rickards.

A monetary ‘reboot’ is not unprecedented

Articles about an imminent return to the gold standard are not exactly infrequent in the gold world and it can be easy to become immune to them and dismiss them without considering the facts and case being made.

Many of the articles are not just based one ever-wishful daydreams.Much of it comes from information that is true about today and is then applied to situations that we have seen in the past.

Rickards makes this point himself. A monetary reset is not unheard of. Since the Genoa Accord in 1922 there have been a further eight reboots. The most recent was in 2016 in what Rickards refers to as theShanghai Accordwhich purportedly saw deals done that would allow China to ease without leading to a sharp correction inthe US stock market.

Rickards isn’t the only one who is speculating that there could be some big monetary changes on the horizon. In March intelligence service Stratfor wrote:

Trump may consider unilateral or, failing that, multilateral currency interventions to bring it back downNegotiating a new coordinated monetary intervention

Stratfor’s analysis was considering the threat of a strong dollar on Trump’s plans to reduce the trade deficit. We have recently discussed the danger of political deadlock and uncertainty on the US Dollar and how this will benefit gold.

Rickards’ comments come from a similarviewpoint in that there is decreasing faith in the US dollar. This lack of trust is mainly driven by the more than $100 trillion debt ($20 trillion national debt and another $100 trillion in off ‘balance sheet’ liabilities) in the country and the ongoing dedollarisation by major economies.

Should Trump continue to stumble, disappoint and provoke then we will no doubt see this issue snowball even faster.

No longer banking on debt

The Federal Reserve – America’s central bank – has lowered interest rates and printed nearly 4 trillion new dollars out of thin air since the economic crisis in 2008.

That’s equivalent to nearly one quarter the size of the entire U.S. economy.

The number one consequence of all of this money printing so far hasn’t been inflation at all

It’s been debt.

Total U.S. debt – across all private sectors – has risen to nearly $60 TRILLION

That’s over three times as big as the entire U.S. economy.

If you add the federal debt to that number, you get $80 trillion! That’s more than four times the size of the U.S. economy.

Source: Jim Rickards via Agora

In fact, the Government Accountability Office just reported this year that the U.S. is at risk of fiscal failure.

And Harvard Economics Professor Kenneth Rogoff says, There’s no question that the most significant vulnerability is the soaring government debt. It’s very likely that will trigger the next crisis as governments have been stretched so wide.

And Investor’s Business Daily reports that: Current total debt, at roughly 105% of GDP, is already in the danger zone – and based on historic