Something weird is going on with gold, related to tariffs and a possible audit, that could drastically change the value of the dollar. Glenn reviews an X thread from user Matt Smith and warns that we must start looking for the word "rehypothecation" to appear in news stories. If that happens, it would mean, "no one owns anything." But this isn't the only possible future. There's a chance, Glenn explains, that Trump could return the US dollar to the gold standard.
Read the X thread: https://x.com/mattpheus/status/188961...
Transcript
Below is a rush transcript that may contain errors
GLENN: They're great. There is a great thread from Matt Smith, that I retweeted last night. And it's about the -- the dollar and our economy and everyone needs to read this.
What the average person is going to be talking about is my groceries are going up. And, yes, they are. That's not anything from this administration. That is from all of the lies, that the media was telling you that things were strong and it's getting better. Yada, yada.
No. It's not. Those numbers and all of that stuff were garbage!
And it's not getting better yet.
And Donald Trump is cutting, cutting, cutting.
But we also need to cut regulations.
We need to get business back on its feet.
These two things have to have happen in a coordinated passion.
Otherwise, you will get the spending.
Remember, most of our GDP. A lot of our GDP is coming from the government.
They're spending all of this money.
You're not spending money. They're spending money. That's keeping the government's GDP. So if you cut, our GDP goes down. Which means all kinds of numbers start to fluctuate from interest rates and everything else. So we want a growing GDP, which means we have to grow real wealth. We have to grow real business. Not NGOs. And the one guy that I think can do it is Donald Trump. But there's a tweet, that caught my eye yesterday. Because it starts with gold, and I've been following the comments.
There's something going on with gold, and nobody really knows what it is. Somebody here in the United States is buying a crap load of gold. We think, I hope. It's the Treasury. Or the central bank. The Fed. But somebody is taking huge physical deliveries. And it's causing shortages, in London. Where they're -- they buy and sell gold.
There are shortages now of gold. Because somebody is buying it. And shipping it here. Somebody with very deep pockets. Okay. So why? Now, this is all theory. That's fact. Here's the theory of what's going on.
They're preparing for a full-on gold audit. We talked about this yesterday. The government right now claims on its balance sheet, as an asset, all of this gold.
And it's valued at $45 an ounce. In case, you haven't heard, it's $2,900 an ounce. So they're talking now, about boosting the price of gold, at least market to market, but maybe even making it 5,000 dollars an ounce. Okay? If that happens, the balance sheet starts to fall into line, and our debt to GDP is not as bad as it really is. Right now. Okay?
Just start claiming the truth about gold, and our balance sheet starts to come into line. Start taking our minerals, start taking our oil. And claiming those as assets, and putting those on the balance sheet. Which we can do. And it's not a bad idea. Unless, you know, we lose in the end.
Because then we lose all of our assets, our natural it assets. You put those on the balance sheet. This helps strengthen the United States. Because we're coming a place where we're not going to be able to finance the debt. Who wants to write the United States a new long-term loan, at less than really market value, and market value, I mean, you know -- if you walked into a bank, and you had the credit report that the United States of America has. What do you think the bank is going to charge you in interest?
You're a risk. You're just addicted to spending. You're doing ridiculous things. I'm sorry.
Now, they might write you a check, if you have all of this stuff on your balance sheet. Okay?
And that's why they're doing it. They're trying to reshore up our balance sheet, make ourselves healthier than we are. Because we're at the end of the dollar. We're at the end of this financial system. So this is an endgame. It's why tariffs are being, you know, brought in.
It's a -- it's a -- to -- to force others to start to see the sorry situation they're in, I mean. Europe. If this deal with Ukraine goes through, which, by the way, yesterday, had a great -- a perfect phone call with Putin. And it did go really, really well.
And Donald Trump is saying, yeah. You know, we might have to have the resources, from you. We might. We want your rare earth minerals.
Because of what we've already given you.
We want that in exchange.
He's doing that as a negotiating tactic with everybody.
And he's putting on notice, the European Union.
We're not in this anymore. This is your problem. We leave. We're not rebuilding Ukraine. You have to do it.
And you're going to have to protect it. And we're not going to guarantee its protection. So if you want it protected. You do it. They're talking $3 trillion to be able to rebuild and protect.
Europe can't handle that!
But, you know what, Europe, neither can we!
So he's putting everybody in the same situation.
And this is going to cause inflation to rise. It's going to!
It will punish the average person. Because tariffs and everything else. If they're not done exactly right, it will punish with higher prices.
However, he's betting that wages will also rise. Because he's forcing people to keep their profits here.
And make jobs here.
If everything goes right, what the -- the trade on gold is showing us, is that we may be going towards a gold-backed financial system. Or gold-backed currency of some sort.
The Fed could even be shut down. There is something big in the wind, and nobody knows what it is, for sure.
So if -- what do you do as a regular person?
You need to understand that the dollar could be by design. Being collapsed.
That's exactly what the Biden administration was doing.
Collapsing the dollar. But they didn't have a plan, to replace it, other than a digital dollar. And, you know, global slavery.
I'm not sure what the plan is here. But it seems much more American-centric. Good for America. And good for the rest of the world.
And it doesn't look like it's taking freedom away from people. But we have to watch it.
The situation with the economy is really dire.
That hasn't gone away!
What we have is a -- one of the best mechanics who have hired the rest of the best mechanics. To come in, put up the hood, and say, we want to save this engine!
How do we do it?
And they're applying that. We don't know what direction. But a -- a huge sign that something big is coming, is the amount of gold that is being purchased. And the key here that you have to understand, shortages in London, gold flowing into the US at record levels. Somebody with deep pockets. This is what Matt Smith is scooping up gold.
They're reshoring gold, that might have been leased out. What does that mean?
That the United States is buying all this gold. Why?
Because they're reshoring the gold that might have been leased out. That's rehypothecation. That's just the word away from the word that I said, if you see rehypothecation.
Begin to be bantered around. Look out.
What rehypothecation is, is we've taken one asset. And we've -- we've counted it, on several different accounting books.
So we counted at the United States. But also, we've -- we've leased this gold out to Germany.
So Germany could get more money, based on their gold. But their gold is our gold.
And our gold is England's gold. So that's how dire this is. Is we're beginning to enter the world of rehypothecation. Which means, no one knows anything. Because your house, you say, well, I've got my loan through Citibank. Because Citibank has rehypothesized -- has used rehypothecation to put that on their balance sheet, as that's their house. But they sold it in a package to eight different banks. And they're all counting that house, yours. As an asset. So when they all start to go down, they all say, well, we've got all of these assets. Well, no, you don't.
Which one of you has the 100 percent.
You're all claiming 100 percent of Bob Smith's house. Which one actually has it? Well, they all do. This is such a Ponzi scheme. Where -- you know what this is?
This is the story of The Producers. You ever see the movie, or the stage show Mel Brooks, the Producers. Why did they get into trouble? Because they were selling over 100 percent of the play. They kept selling the play. You get 100 percent. You get 100 percent. You get 100 percent. All thinking, that it's not -- that that particular show, wouldn't make any money.
It won't be a success. It's the worst play ever. So it will close. And nobody will audit and say, wait a minute. You sold 100 percent. Nobody will ask. They just want to get away from it.
They lost their money. It closed.
But if it's a success, they now have to pay 100 percent of the proceeds to 14 different people!
It's a scam. That's what's happened here. They have sold 100 percent of your house, or in this case, the gold!
To several different people. When everybody says, I'm in trouble. I want my money back. I need my gold. Trouble.
Trouble.
STU: I mean, it just seems like the type of thing that's almost impossible to unwind. Right?
If it's that deep, how do you unwind it, or do you just protect yourself and your family?
GLENN: For you. You -- you make sure that if your house is paid for. If you have anything paid for, you have the title.
You know where the title is, you have the title.
Okay? So you're not in as bad of shape.
If you own things. You own your car. Good.
The title.
You own your house, good. Have the title.
It's really good, if you're buying a house, to make sure that that loan is staying local.
That they're not reselling that loan. That it's staying with one bank. And it's not -- it's not being sold, what were those cold? Credit default swaps.
STU: I remember those things. Yeah.
GLENN: That it's not being sold like that. Because that's what causes the problem.
And -- and so you just need assets.
You need real assets. If you can buy gold, you should buy gold.
It especially, if they're going to start counting that on the balance sheet. If they change the price of gold, to -- from $45, to $4,500, that means they're going to have to do that worldwide. So gold all of a sudden becomes $4,500 an ounce. Okay. As your that are goes down, your gold will go through the roof.
STU: This is much better when Margot Robbie is telling me about it, in a bathtub. That is -- the delivery --
GLENN: I can run the water.
STU: No. Please don't. Oh, my gosh. Sara just threw up on the board. Stations, we may have some technical difficulties.