retiring debt with gold revaluation would change the composition of liquidity:

➖ less US government bonds (safe collateral)
➕ more base money (reserves) and/or broad money (deposits)

so the end result is more base and/or broad money, but less prime/repo-eligible collateral

Illya Gerasymchuk 2025-09-05 00:34

persistent deficits & refinancing needs will add $1 trillion of new debt in less than a year

so gold revaluation is insignificant for US federal government's debt problem