Inflation Awaits

We’re living in a nation that is teetering on the brink of a pandemic-based economical disaster. The country has a severe debt of $27 trillion and counting! Every 11.5 seconds, the national debt is increased by an additional $500k… visit usdebtclock.org and grab a stopwatch and time it yourself. This debt would be acceptable if our economy were at $50 trillion. Unfortunately, we have around a $21 trillion economy. When debt is larger than the economy, inflation awaits.

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Historical studies by renowned economists like Carmen Reinhart and Ken Rogoff span hundreds of years show that varying countries and empires have defaulted on debts. When this happens, a dollar of debt generally yields below a dollar of output. This is a case when the debt goes against growth. When you look at the current US debt-to-gross domestic product (GDP), you see a recent increase from 105% to about 130% (a spike that is primarily due to the 2020 Covid-19 pandemic).

While it would seem tax cuts and structural changes to the economy combined would manage the problem, most see the issue as too big to solve this way. This leaves only one outcome: inflation. How do we solve it?

History Proves this Action

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The Fed could vote on new policies and literally announce a gold price increase to $5,000/oz. They could then practically back the price using Fort Knox Treasury’s gold in which US bank dealers of gold would conduct open market operations. At the price of $5,000/oz, dealers will buy if the price goes below $5,000/oz and sell if the price goes above $5,000/oz. They would then print money on a buy or reduce money on a sell-through the banks. The Fed, in turn, would target gold prices rather than interest rates.

Such a scenario had taken place before—in fact, twice over the last 80 years, in 1933 under the order of Franklin Roosevelt to increase the gold price from $20.67/oz to $35/oz (for a 75% rise in price), second in 1970 under Richard Nixon when he stopped the dollar-to-gold conversion by US traders. Gold went from $35 per ounce to $800 per ounce. The country experienced inflation, after all.

We can see from history that raising the price of gold quickly leads to inflation. The markets may not cause inflation, but the government can force it. For example, when the US Treasury took control of the nation’s gold under the Gold Reserve Act of 1934 (during the depression), it also included the Federal Reserve’s gold. While the Fifth Amendment states the government may not seize private property without compensation, there are loopholes. The Federal Reserve is not a government institution, so the Treasury gave them a gold certificate to compensate and to follow the Fifth Amendment (it was left on the books).

In 1953, Eisenhower faced a debt ceiling, as Congress did not raise it in time. When the administration could not pay the bills, they turned to the gold certificate left on the books in 1934. It turns out this certificate did not include all of the gold the Treasury possessed. So, the Treasury figured the difference and sent it to the Fed, asking for the money. The government essentially got the funds needed from the Treasury’s gold—until Congress increased the debt ceiling.

Today’s Scenario

Today is no different. The Federal Reserve’s gold certificate values gold at $42.22/oz—while today’s market price of gold is about $1,900/oz. The Treasury could issue the Federal Reserve a gold certificate in the amount of 8,000 tons at $1,900/oz, subtract the original $42.22/oz, multiply the difference by 8,000 tons and literally come up with nearly $500 billion.

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Simply put, the Treasury could issue the Fed a gold certificate in the amount of 8,000 tons (in Fort Knox) at $1,900/oz and ask the Fed to give the difference over $42/oz. The Treasury would gain nearly $500 billion, debt-free. This would not increase the national debt since the Treasury already possesses the gold.

Conclusion: Inflation is Inevitable

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In reality, there is not enough gold to support finance and commerce. Also, the gold supply does not grow fast enough to support world growth. Therefore, whether this scenario will play out as we deal with economic trials remains to be seen at a national level. Our solutions to the current national debt are certainly inflationary measures, which means we must revalue the dollar through higher gold prices or mark the gold as marketable to give the government money.

Both scenarios are leading in one direction: Higher inflation seems inevitable to save the nation from debt. As the government begins to recover from the results of a complicated and unusual state of distress, Reagan Gold Group may be able to address your financial questions and guide you for a stable investment in Physical Gold & Silver. Now maybe the most critical time to watch the market and invest in a more positive future. Call today and learn more about how to stabilize your retirement portfolio and prepare for the possibility of most-certain inflation.

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Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

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