Trump's New Plan To Replace Gold And Fix The $39 Trillion Debt

Added: 2026-05-28

[00:00:00]President Trump just launched his new plan to save the United States dollar from the $ 39 trillion debt crisis. No, it's not by having the dollar backed by gold. And no, it's not by having the dollar backed by oil either. It's by having the United States dollar backed by crypto. Let me explain. The value of a money depends on if people believe that it has value. If I walk into a rural third world country and nobody's ever seen this bill before and I say, "Hey, can you give me some food in exchange for this bill?" They're not going to give me any food. But if I walk into a Chipotle in the United States and I give them this bill, they're going to give me food. So it has more value. If people believe it has value, if people around the whole country believe it has value, it has more value. If people around the world believe it has value, it has even more value. Well, our money has gone through a lot of changes over the last 100 years, and it's about to go through another one. Take a look.

[00:00:48]Believe it or not, the United States dollar was not always the world reserved currency. It became the world reserved currency in 1944 after World War II. And that meant two things. Number one, it meant that trade around the world happened in the United States dollar.

[00:01:03]And number two, countries around the world save their money and their wealth in the United States dollar. So being the world reserve currency brought a lot of value, a lot of trust, and a lot of power to the United States dollar. But that's not all. The other reason why the United States dollar had so much value was because it was backed by physical gold. Which meant the United States government and the Federal Reserve Bank couldn't just print more money out of thin air because we needed more gold to justify our money printing because our money was backed by this precious metal which was physical gold. But then that temporarily changed on August 15th, 1971 when then President Richard Nixon took the United States dollar off of the gold standard. I have directed Secretary Connley to suspend temporarily the convertability of the dollar into gold or other reserve assets except in amounts and conditions determined to be in the interest of monetary stability and in the best interest of the United States.

[00:01:58]>> Here we are 55 years later and we're still temporarily off of the gold standard. But after the dollar was taken off of the gold standard in 1971, a lot of people got concerned that if there's no thing backing the United States dollar, how was it actually going to have value? because it's just pieces of paper. So in 1974, a deal was made between the United States and Saudi Arabia. And the deal was, hey, you Saudi Arabia, you're going to sell all oil in the United States dollar. And you're going to make sure that all around the world, every country has to sell oil in the United States dollar as a way to keep value, power, and trust in the United States dollar. And in exchange, the United States would then protect Saudi Arabia. So that happened in 1974.

[00:02:40]This was called the petro dollar agreement. A lot of people just kind of refer to it as the petro dollar, but that then started to change and break in 2023. I put some question marks here because history is 2020. We'll see what ultimately happens over the next 10 years. But it started to break in 2023 because that was when Saudi Arabia then started to sell oil not in the United States dollar but in the Chinese yuan for the first time that we had seen in about 50 years. And now naturally you can start to see where people got concerned. If the United States dollar is not backed with gold, if people are now buying oil, not with the dollar, but with the Chinese yuan, will the dollar collapse? What is that going to mean for the value of inflation? How are we going to protect ourselves? And this is where we're starting to see President Trump come up with a new plan for the United States dollar, not with gold, not with oil, but with crypto. Now, I get it. The idea of a crypto dollar sounds absolutely crazy, but we're starting to see it happen already. A single crypto company already owns more United States government debt than 19 countries around the world. But that's not all. In 2025, President Trump signed an executive order establishing cryptocurrency as a strategic government reserve asset. And third and most important is a law called the Genius Act that will come into effect in January of 2027. What this Genius Act says is that stable coins are required to be backed one to one by United States treasuries, meaning United States dollars. Almost like before how the United States dollar was backed by oil. And now we're starting to see laws requiring these cryptocurrencies to be backed by the United States dollar. But it goes a little bit deeper. By the way, this is one of the reasons why on June 16th, 2026, I'm hosting a live free and virtual investor workshop. Because our economy is changing, investments are changing, and money is moving. And if you want to see how you can better position yourself for retirement in an age where money is changing, AI is changing, technology, and our economy is changing very rapidly. On this live investor workshop, I'm going to be showing you how you can capitalize on all these changes and hopefully grow your wealth even faster because of these changes. I'll be showing you some new research that my farmer has put together. So, if you are an investor and you want to see how you can use all these changes to your advantage, I invite you to join me for free and live and virtually on June 16th. I'm doing it live at 12:00 noon Eastern time. And just to be clear, there is a limited number of people that can join me live on this live workshop because of our software limitations. So, if you are interested, I encourage you to register soon. And please note this time and date on your calendar. So, if you're an investor and you want to see how you can use these changes to your advantage, invite you to join me on June 16th for my live investor workshop. Just for full transparency, let me actually read you exactly what the Genius Act says from the White House website. Take a read.

[00:05:26]The Genius Act requires 100% reserve backing with liquid assets like United States dollars or short-term treasuries and requires issuers to make monthly public disclosures of the composition of reserves. That means every digital dollar in this system is required legally to hold United States debt. The way that this works is that the United States government has one source of revenue and that source of revenue is tax dollars from taxpayers. In 2026, it's estimated that the government's going to collect something like $5 trillion from taxes. Well, then the United States government goes out and they spend money. They spend money on things like social security and health care and infrastructure and the military. Well, we don't run a balanced budget in 2026. The government is not going to spend $4 trillion or $5 trillion or even $6 trillion. We're going to spend something like $7 trillion. Well, that is a gap, a deficit. And to make up for this deficit, the United States government then has to go into debt to borrow that money. Well, this is where things start to get really interesting because there are three main lenders of money to the United States government. Number one are private people and institutions. This is people like you and me that lend money to the government in exchange for interest. It's private banks and institutions that lend money to the government. Number two are foreign governments. These are countries like Japan and the United Kingdom and China which lend money to the United States government. And then number three is the Federal Reserve Bank. The Federal Reserve Bank is a central bank here in the United States. And they're actually not a bank because you can't go there to deposit money. They're not a reserve because they're not sitting on any cash reserves. They're actually not federal.

[00:07:04]It says so on their website. They just have the ability to print money and lend it to the government if the government can't borrow enough money from other places. Well, what we're seeing happen is that more and more foreign countries are not buying more debt. Like China has turned to a net seller of the United States debt. We've seen issues in the Japanese economy. So, Japan is saying, you know what, maybe we're not going to buy as much of this United States debt.

[00:07:25]And when it comes to private people, more and more people are saying, you know what, I'm concerned about inflation. I'm concerned about the United States government. I'm concerned about the government's ability to continue covering all of the $39 trillion of debt that we have. So, I don't want to lend as much money to the United States government. And so we've seen concerns about how is the government going to continue borrowing an infinite amount of money. And this is where, like we're talking about, we're starting to see these cryptocurrency companies being required required by law to lend money to the United States government. That's why we've seen private cryptocurrency companies like Tether now become one of the world's largest owners of United States debt.

[00:08:03]And yes, you bet that that poses some risks, which I'll talk about in just a minute. Now, here's where all this ties together. It's not a new thing that the government is going into debt to fund all of their spending. But the United States government's debt really depends on how much value the United States dollar has. Well, back in 1944 to 1971, when the dollar was backed by gold, it had more value. So, people felt more comfortable loaning money to the United States government. When it was backed by oil, people said, "You know what? I'm not worried about inflation. I'm not worried about the government paying back their debt because the whole world buys and sells oil in the United States dollar. So, I'll continue lending money to the United States government. Well, now as we're starting to see changes in the petro dollar, as we're starting to see certain countries buy and sell oil not in the United States dollar, we're starting to see some people and countries say, you know what, I don't want to lend money to the United States government. I don't want to hold on to these dollars because I'm concerned about this. I'm concerned about the value. And this is where now the United States government is requiring by law that these cryptocurrencies have to hold on to these United States debt.

[00:09:10]They must lend money to the United States government. Well, what does that do? It shows that when the United States government spends money they don't have, they will continue borrowing that money.

[00:09:18]Cuz could you imagine if the United States government went out to spend money and they couldn't find lenders? If the United States government said we need to go out and raise a trillion dollars and there's not that money out there, that could create a crisis, not just in the United States, but in the entire world because we are the world's reserve currency. And this is where what the United States government is saying is that these cryptocurrency companies are now required by law to lend money into the United States government. And this is where things get really interesting because if you ask the Trump administration, they are expecting that the largest lenders to the United States government in the future are not going to be foreign governments. It is going to be private cryptocurrency companies.

[00:09:59]Let me read you a tweet directly from Scott Bent who was a Treasury Secretary to the Trump administration. Recent reporting projects that stable coins could grow into a $3.7 trillion market by the end of the decade, meaning 2030.

[00:10:14]Let me explain what that means in plain English and put it in perspective. The Treasury Secretary of the United States now says because of this new law requiring these private cryptocurrency companies to own this United States debt, he's anticipating that these cryptocurrency companies are going to own about $3.7 trillion of this debt to the United States government by the year 2030. To put that in perspective, today the largest foreign government lender to the United States is Japan. They're one of the largest lenders right now to the United States government in general.

[00:10:47]They own about $1.2 trillion worth of United States debt.

[00:10:54]We're talking about more than 3x more than the largest foreign lender to the United States government today to be cryptocurrency companies. So, you can start to see now how the United States government is starting to lean on this cryptocurrency and these stable coin companies to now back and give value to the United States dollar. Yes, that poses some concerns as well. But before I talk about the concerns, let me talk about the benefits. Because if there are more buyers of United States debt, that continues to give value to the United States dollar. And that helps preserve the United States dollar as the world reserve currency. That allows the United States government to continue spending money they don't have. It allows us to manage inflation even though inflation is a problem in the United States. You can only imagine how much worse it would be if we did not have value in the United States dollar. Plus, we're starting to see more and more countries around the world use the United States dollar indirectly because many countries around the world are using stable coins even if they're trying to leave the United States dollar. But these stable coins that they're using are backed by the United States dollar, which means it's not just the United States using the dollar. It's many countries around the world using the dollar indirectly through these stable coins that are backed by the United States dollar. For example, Russia is trying to leave the United States dollar, but they've been using stable coins backed by the United States dollar. Likewise, Venezuela had a hyperinflation problem. Their currency was destroyed, and so their citizens started saving their money in stable coins backed by the United States dollar. So, we're starting to see more countries and people around the world use the United States dollar without using the dollar by using this cryptocurrency. That all is good for the United States dollar. That all is good for people in the United States. Because that means your paycheck has more value.

[00:12:33]That means your savings has more value.

[00:12:36]Why? Because people around the world need the United States dollar. That brings more value to the United States dollar. That gives more power to the United States dollar. And that means less inflation on your dollar. Now, I get it. Inflation is still a problem, but it could be a whole lot worse if people did not have value, trust, and belief in the United States dollar. But now the thing that I've been talking about, if we have this amount of United States dollars in debt being held by some private cryptocurrency companies, couldn't that pose a threat? Because just like how these cryptocurrency companies are now legally required to hold the United States dollar, if something happened to these companies, if they stopped, if they started dumping the dollar, couldn't that collapse the dollar? Well, here's what you have to understand. These stable coin companies like Tether and Circle, they're not banks. So, they're not regulated the way the banks are. They're not a part of the United States government. They're not federal. They are these private cryptocurrency companies. And not just that, they're also extremely profitable.

[00:13:42]Tether is one of the most profitable companies in the world. And because they are global companies, not United States companies, they're also regulated, not in the United States. Here's why that's so important. You've heard me say this multiple times on my YouTube channel that the Federal Reserve Bank is not a bank. It's not a reserve and it's not federal. It says so on its website and a lot of people have had issue with the Federal Reserve Bank being a private organization, but it's still kind of oversaw by the United States government.

[00:14:09]Well, now we have truly entered a space where we are privatizing the money creation process because now the money creation process and this lending is happening not by the Federal Reserve Bank so much but by these private cryptocurrency companies. So we are truly moving into a private money creation process. And the concern is what happens if things go wrong? Because we've seen things go wrong with stable coin companies in the past. in 2022. Do you remember Teral Luna where $60 billion dollars worth of value just essentially vanished in a matter of three days? Now, yes, that was different than here because it wasn't backed by the United States Treasury, but you can start to see the concerns that if something would go wrong, that now has an impact not just for that private company and the holders of the stable coins, but now it can impact the entire United States economy, the entire United States dollar, and the entire global reserve. Now, if you're wondering how these cryptocurrencies make so much money, the way that it works is you go out and you buy these stable coins at a company like Tether, they take your $100 and then they go out and they buy this United States debt. The government's going to pay them, let's just say 4% a year in interest and then they are going to issue you a United States dollarbacked cryptocurrency. So, you give them $100. They lend that money to the United States government. The government then pays Tether 4% a year and then they're going to give you 100 of these stable coins. So, they generate interest on every dollar that they have in stable coins and that's how they've become wealthy. This is why your financial education is so important because the Genius Act is signed into law, but the implementation rules are going to go into effect in January of 2027. And you bet that this is going to create investment opportunities. Now, I can't tell you what to invest in.

[00:15:53]Investing has risks. You're never guaranteed to make money when you invest. In fact, you will lose money at some point. So, make sure you always do your own due diligence and never blindly trust a random guy on YouTube. But this is why I want you to keep investing in your financial education. Again, I have a free investing master class for you down in the description because if you can understand where money is moving, that's how investment opportunities are found. So, what we talked about in this video is that the United States government has signed something called the Genius Act into law. And the reason why this matters is because the United States dollar ultimately depends on value and trust and belief that it has value. Well, in 1944, the United States dollar then became the world's reserve currency. And the reason why it was so valuable then, besides just being the world's reserve currency, is because it was also backed by physical gold. We couldn't just print more dollars because we needed more gold to justify that money printing. Well, that went on between 1944 to 1971. And then that ended in 1971. Now the concern became if the dollar is not backed by gold, how will people have trust in the value? In 1974, then the United States made a deal with Saudi Arabia to then build something called the petrod dollar agreement which said that all oil around the world would be purchased and sold with the United States dollar. This then brought new value to the United States dollar because it was indirectly backed by oil. Well, then things started to change in 2023. Why? Because Saudi Arabia, the same country that built the petrod dollar agreement, then started selling oil, not in the dollar, but in the Chinese yuan. And then people started to have more concerns about the dollar. We started to see more concerns about inflation. What is that going to mean for this value and trust of the United States dollar? And now here we are in 2026 talking about the crypto dollar. What does this mean? Well, remember the United States government generates tax dollars and then they spend tax dollars and we have this deficit in 2026. It's about a $2 trillion deficit that we're going to spend about $2 trillion that we don't have. Well, where is the government going to make up this deficit? That's debt. In order to entice people or countries or anyone to lend money to the United States government, they have to believe that it has value. And this is where what we've seen happen is that some foreign countries like China and Japan are not buying United States debt the way that they did before. And we also have concerns about some private people saying, "I don't want to lend money to the government the way that they did before because of concerns about inflation and the dollar and other things like that." Well, that could be a problem if we don't have enough buyers of this United States debt. And this is where the United States government is proposing a new solution. They've already passed the law which says that now these stable coin companies will be required to hold this United States debt for every stable coin that's issued. you are required by law to own this United States dollars. Well, now these stable coins are being used all around the world. And these stable coins, while they make it easier for people to transact, now give more faith and value to the United States dollar because now these private stable coin companies are required by law to own these United States dollars. And we've already started to see the impact of that. Some stable coin companies own more United States dollars than many countries around the world.

[00:19:03]Well, it looks like this is going to be accelerating because according to the Treasury Secretary, he says that by 2030, these crypto companies are going to own about 3.7 trillion worth of United States debt. You can compare that to Japan, who today is the largest foreign owner of United States debt. And they own something like $1.2 trillion worth of debt. So, it's anticipated that these crypto companies are really going to ramp up their ownership of this United States debt. Why does that matter? Because if there are many lenders to the United States government that continues to give value to the United States dollar. So if countries and people around the world are using this stable coin backed by the dollar, that means that your paycheck has more value, your savings have more value and you become more wealthy because the world is using these stable coins. But it also comes with some risk because we've seen stable coin companies not do well in the past. Of course, they were different than the stable coin companies I'm talking about today. But we are really entering a phase where if this continues, we are entering a phase where money creation and the United States debt is now being completely privatized, owned by private companies, not like the Federal Reserve Bank private, but I mean actually private. And that poses concerns of course because if something bad were to happen, that not only hurts the United States economy, the United States stock market, but it could hurt the value of the United States dollar and the global reserve system. That's why you want to pay attention to this.

[00:20:27]But you bet it's going to change money.

[00:20:28]It's going to change how investment opportunities move because if there's more lenders to the United States government, well, that could change interest rates. If there's more lenders to the United States government, that could bring interest rates down. That could bring mortgage rates down. That could bring car rates down. That could bring business rates down, which could help boost the United States economy and the United States stock market. That's why you want to understand how this works. This could change how people view cryptocurrency and cryptocurrency companies in the United States, which could create investment opportunities.

[00:20:55]This could change the way the United States economy works, which could change and create new investment opportunities.

[00:21:00]Again, this is one of the reasons why I'm hosting a live investor workshop on June 16th. If you haven't registered for that, I have the link for you down in the description because anytime changes happen in the economy, it always creates new and unique investment opportunities.

[00:21:13]Again, we don't know what's going to happen in the future, but your job is to be a financially savvy investor and understand where money is moving. That way, we can understand how it could create potential investment opportunities. If you got value out of this video, the best thank you is a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. One year ago, President Trump signed the biggest tax cut bill in the history of America.

[00:21:38]And now, your taxes are going to change in 2026. Take a listen. We have officially made the Trump tax cuts permanent. That's the largest tax cut in the history of our country added to substantial