America’s “Final Reset”

Today we pick up where we left off yesterday: “The Final Reset,” what it’s likely to look like, and how it’s likely to impact all of us. 

Yesterday, I harkened back to Sunday night, August 15, 1971, when Richard Nixon told Americans in a live, televised speech that he was taking the dollar off the gold standard—a move that marked the first time in monetary history that money was not backed in some form by physical metal, typically gold. 

That moment came about because the dollar was facing a crisis—globalized loss of faith in America’s ability to meet its obligations for maintaining a world reserve currency. 

Skip ahead 50-plus years and there are increasing rumblings about America’s ability to maintain a world reserve currency because our financial and political houses are in such disarray.  

Unending deficit spending…history’s largest collection of debt…politicians willing to destroy America’s credit-worthiness in pursuit of their side’s ideals… 

From all this, one certainty arises: The Final Reset, in which the U.S. dollar loses reserve currency status. 

What will this look like? 

Well, much like Nixon’s Sunday night decapitation of the dollar (the buck fell nearly 30% against a basket of world currencies over the next seven years), we are going to come upon a Sunday night, sometime before the end of the decade (my bet: 2027-28), when the president of the United States suddenly appears online and on all major cable news networks to announce that, in concert with the World Bank, the International Monetary Fund, and a host of Western nations plus China, the U.S. has agreed that the dollar will no longer serve as the world’s reserve currency.  

And I guarantee 100% he will blame this on global currency speculators, as do all governments that have mismanaged their currency for decades. 

The reality, however, will very much reflect events of the 1960s that led to Nixon’s TV moment in 1971: Increasing loss of faith in the greenback’s ability to perform the duties of a stable, reserve currency. 

The president will also announce that as part of this plan, the U.S., other national central banks, and the various supra-governmental financial institutions (the IMF, World Bank, etc.) are moving to a digital reserve currency anchored by gold, bitcoin, and a basket of various central bank digital currencies (crypto versions of our sovereign currencies).  

The president will announce that starting Monday, all banks will be closed for a time, maybe a week, as America transitions to a new central bank digital currency—the Digi-Dollar. All bank deposits must be catalogued and converted into digital accounts, and that will take some days to accomplish. 

All of this will be aimed at stabilizing Western currencies that are in a race to the bottom because of their combined and excessive debts. 

As with all hard-asset backed currencies across history, all currencies in the new digital basket will be assigned a set price against gold and bitcoin, since both these assets are controlled by no one and no government.  

Depending on the amount of global currencies and debts that the collection of nations wants to cover, the effect of this move will see gold valued at between $7,500 and $10,000 per ounce, while bitcoin’s value is set at between $500,000 and $1 million per token, in terms of greenbacks. 

You will have a certain amount of time to spend whatever physical cash and coins you have, or to deposit them into your bank account for conversion into Digi-Dollars. After that, they will go away forever.  

The good news here is that the dollar won’t collapse.  

It will stabilize because it will be tethered to bitcoin and gold.  

Bitcoin and gold will no longer fluctuate wildly in value since they’re now global reserve-currency anchors. 

The better news is that because bitcoin will continue to be mined until the year 2140, there will be consistent growth in the quantity of bitcoin over the next century. Moreover, there will be consistent growth in the quantity of gold as well, as more mining occurs.  

So, by assigning an inflationary policy to both bitcoin and gold—meaning the price is allowed to rise by a certain amount each year—the global economy can continue to expand. 

Heck, governments can continue to pursue wildly stupid spending policies, if they wish. Doing so, however, will mean the value of their national digital currency relative to the basket—and particularly relative to bitcoin and gold—will slide, thereby hurting their economy and their consumers. 

With that, the president will conclude with comments on how America’s best days now lie ahead.  

The sun will rise Monday morning. People will be unsure of what’s going on and what it all really means. There will undoubtedly be some panic. Consumer prices will be higher because the dollar has been revalued lower relative to all the other currencies in the basket. 

Gold and bitcoin prices will have reset radically higher in the hours after the president’s TV appearance. The stock market will quite likely rally because of the assurance that a debt and monetary crisis is no longer a threat. (Gold miners will go parabolic.) 

And as with Nixon’s August 15, 1971 speech, one monetary era will have ended. The age of fiat currencies will have concluded as a failed experiment in government monetary management. 

But unlike the aftermath of Nixon’s move away from gold, the new age of hard asset-backed central bank digital currencies will be a boon for America and the world (though there are meaningful privacy issues to work out).  

It will allow for economic growth, yet impose a real measure of restraint on governments—particularly Washington, D.C.—which can no longer print fake money willy-nilly without causing extreme duress on their economy and citizens. 

The Final Reset will have begun. 

The takeaway in all of this? 

You should be methodically gathering up bitcoin and gold as we approach The Final Reset. When those two are repriced, the investors who today are stockpiling those assets are going to reap unimagined rewards. 

When Richard Nixon took the dollar off the gold standard, Arthur Burns, then the chairman of the Federal Reserve, called it “a tragedy for mankind.”  

The Final Reset is going to be the opposite.