How the United States Is Quietly Erasing Its $38 Trillion Debt

Gold, Bitcoin, and the Great Monetary Reset

For more than a century, the United States has positioned itself as the world’s economic anchor — the issuer of the global reserve currency, the guardian of international finance, and the arbiter of monetary stability. Yet behind this façade of strength lies a truth so stark that few politicians, few economists, and almost no mainstream journalists dare to articulate it: the United States has accumulated a national debt so enormous that repayment is no longer possible. Not theoretically. Not politically. Not mathematically.

At more than $38 trillion and climbing, the US national debt is not merely a problem; it is an existential condition of the modern financial system. The country has reached a point where it spends over one trillion dollars every year—not on defence, not on infrastructure, not on public services, but simply on interest payments. The United States now borrows money just to service the money it has already borrowed. This feedback loop, sometimes called a “debt doom-cycle”, is what nations usually encounter shortly before their currencies are radically restructured or replaced.

Yet the United States is not Venezuela, Argentina, or Zimbabwe. When the issuer of the world’s reserve currency faces insolvency, the consequences are global. Therefore, the question becomes: How does a superpower escape from an unpayable mountain of debt without collapsing the global financial system or triggering political chaos at home?

According to a growing body of analysts — and reflected in the narrative you provided — the answer may be unfolding quietly, strategically, and in full public view, but without public understanding. It is a subtle, multi-layered strategy involving controlled inflation, the revaluation of gold, and the absorption of cryptocurrency into state policy. It appears to represent nothing less than the early stages of a monetary reset.

This is the story of how the United States may be preparing to erase its debt — not by paying it, but by devaluing it, offsetting it with revalued hard assets, and eventually reorganising the financial system around a new foundation.

1. The Debt That Can Never Be Repaid

The scale of the US national debt is difficult for the human mind to grasp. Comparisons help. If you had begun spending one million dollars every single day starting on the day Jesus Christ was born, more than two thousand years ago, you would still not have spent a single trillion dollars. The United States owes thirty-eight of those.

For decades, politicians have spoken about the need to balance the budget, rein in spending, or “be fiscally responsible”. But this rhetoric has never matched action. The debt has grown under every president of the modern era, regardless of party, ideology, or economic climate. Wars, bailouts, tax cuts, welfare expansions, emergency measures, infrastructure packages — all have added to the burden.

But it is the last twenty years that have been decisive. The financial crisis of 2008 triggered unprecedented money creation. The pandemic of 2020 expanded government spending on a scale not seen since wartime. And each new crisis requires more borrowing to paper over the damage done by the previous one.

To understand why repayment is impossible, consider a few key facts:

1.1 The interest alone is now unsustainable

The United States is currently paying over $1 trillion per year in interest. That figure is rising as old low-interest debt matures and must be refinanced at today’s higher rates.

1.2 The debt-to-GDP ratio exceeds 122%

A nation can theoretically sustain debt up to a point, but once it exceeds GDP, the system enters dangerous territory. The United States passed that threshold long ago.

1.3 Government revenue is far too small

Even if the government seized every dollar of corporate profit and every dollar of personal income over $400,000, it would not come close to balancing the budget, let alone repaying the debt.

1.4 Political paralysis prevents meaningful reform

Cutting spending is politically suicidal. Raising taxes is equally toxic. No leader can propose a realistic plan without ending their own career.

1.5 The global economy depends on US debt

Treasury bonds are the backbone of the international system: central bank reserves, pension funds, trade balances, insurance portfolios — all rely on US debt. A formal default would destabilise every economy on earth.

Thus the United States is trapped. It cannot repay the debt. It cannot stop issuing new debt. It cannot default. And yet the structure is mathematically doomed.

This leaves only one path: make the debt irrelevant by devaluing the currency in which it is denominated.

2. Inflation: The Hidden Engine of Debt Destruction

Inflation is widely misunderstood. Most people believe it results from supply chain disruptions, geopolitical tensions, corporate greed, or central banks mismanaging interest rates. While these factors contribute to short-term fluctuations, structural inflation—the kind that erodes purchasing power year after year—is primarily caused by a single phenomenon: an increasing money supply.

Governments rarely admit this, because the political consequences would be catastrophic. But the mechanics are simple:

• Debt is denominated in dollars.
• The government prints more dollars.
• Each dollar becomes worth less.
• The real burden of the debt shrinks.

This is known as inflating the debt away.

Citizens experience inflation as rising prices: groceries creeping upward, rent becoming unaffordable, fuel costs biting harder. But from the government’s perspective, inflation is a tool — a silent tax, a slow confiscation of wealth from savers, and a transfer of value from the private sector to the state.

The United States used this tactic after World War II, shrinking its debt dramatically by keeping interest rates lower than inflation for years. Today, the same strategy appears to be resurfacing, but at unprecedented scale.

2.1 Why inflation benefits the government

• Inflation reduces the real value of outstanding debt.
• Wages rise nominally, pushing taxpayers into higher tax brackets.
• The government repays old debt with devalued dollars.
• Assets the government holds (gold, Bitcoin, land) appreciate.

2.2 Why inflation harms ordinary people

• Savings lose value every year.
• Fixed incomes and pensions buy less.
• Mortgages, rents, and food prices outpace wage growth.
• Wealth flows upward to those holding hard assets.

Inflation allows the debt to shrink quietly, but it carries a risk: if it runs too fast, it becomes hyperinflation. If it runs too slowly, the debt grows faster than inflation can counter it. To manage this, the government needs an anchor — something to stabilise a future monetary reset.

Enter gold.

And surprisingly, crypto.

3. Gold: The Ancient Asset in America’s Shadow

Gold has been the foundation of monetary systems for thousands of years. It is universally recognised, impossible to create artificially, and historically used to back currencies. The United States officially holds 8,133 tonnes of it — the largest national hoard in the world — much of it stored (supposedly) in Fort Knox.

Here is the crucial detail: The United States values all of its gold at $42.22 per ounce, a price set in the 1970s. This means the gold on the Treasury’s balance sheet is listed at a tiny fraction of its true market value.

If the government wished to, it could revalue its gold overnight. A move to $10,000, $25,000, or even $50,000 per ounce would create trillions of dollars in new balance-sheet strength — enough to offset inflation, rescue the dollar in a crisis, or serve as collateral for a new monetary system.

This is not theoretical.

The United States has done it before.

3.1 The 1933 gold confiscation and revaluation

In 1933, during the Great Depression, the U.S. government ordered citizens to surrender their gold at $20.67 per ounce. Once collected, the government raised the official price to $35 per ounce. That revaluation instantly created wealth for the state at the public’s expense.

A similar mechanism could be used again — but this time without confiscation. The government simply needs to reprice the gold it already holds.

And there is growing speculation that such a revaluation may eventually be necessary to repair confidence in the dollar after years of inflationary erosion.

4. Bitcoin: From Government Target to Strategic Reserve

Perhaps the most surprising development is the US government’s changing relationship with cryptocurrency, particularly Bitcoin. For years, the government treated crypto as an enemy: a tool for criminals, a threat to financial stability, and a competitor to the dollar. Regulatory pressure intensified:

• Banks were discouraged from serving crypto clients.
• Exchanges faced lawsuits and enforcement actions.
• Stablecoin issuers were scrutinised or blocked.
• Agencies coordinated to squeeze crypto access points.

This crackdown became known as Operation Chokepoint 2.0 — a deliberate attempt to starve the crypto ecosystem of banking support.

Then, suddenly, everything changed.

4.1 The crypto pivot of 2025

In 2025, the US government:

• Shut down its internal crypto enforcement teams.
• Ended Operation Chokepoint 2.0.
• Banned the development of a central bank digital currency (CBDC).
• Announced a US Strategic Bitcoin Reserve.
• Stopped selling seized Bitcoin and began holding it.

The government, through law enforcement seizures alone, controls at least 325,000 Bitcoin. Instead of auctioning it, as it historically did, the government is now treating it like gold — a strategic asset.

This pivot sent shockwaves through the financial world. Bitcoin ETFs were approved, enabling institutional and pension fund access. Financial advisors who once avoided Bitcoin are now obligated to offer it as an investment option.

Whether by design or consequence, the United States is now accumulating and legitimising Bitcoin just as its inflation problem becomes unmanageable.

4.2 Why Bitcoin benefits the government during a monetary reset

• Bitcoin appreciates when fiat currencies weaken.
• The government’s holdings grow in real value as inflation rises.
• Bitcoin can serve as a modern counterpart to gold in a future reset.
• It provides an alternative anchor if public trust in fiat collapses.

A nation that controls a large share of Bitcoin wields significant power in a digital financial future.

5. The Digital Prison That Never Materialised — Yet

The one instrument that could have cemented full control over citizens’ finances was a central bank digital currency. CBDCs offer governments extraordinary power:

• Transactions can be tracked in real time.
• Purchases can be restricted by category (fuel, meat, travel).
• Funds can expire, forcing consumption.
• Taxes can be deducted automatically.
• Dissenters can be blacklisted from spending.
• Interest rates can be applied individually.

China’s digital yuan already incorporates many of these features. The Bank for International Settlements — the central bank of central banks — has openly stated that CBDCs allow governments to exercise “absolute control” over money.

In the United States, a CBDC looked inevitable.

Until it was banned.

The current ban could be temporary — political theatre to gain public support — but even if permanent, the underlying infrastructure for digital financial control already exists: banking surveillance, payment monitoring, taxation data sharing, and the private sector’s own systems.

CBDCs may return in the future under the guise of crisis management, cybersecurity protection, or anti-fraud measures.

6. The Three-Part Strategy to Erase the Debt

Taken together, these developments form a coherent picture of a larger strategy:

Step 1 — Inflate the debt away

Let inflation run above interest rates so that:

• The real value of $38 trillion shrinks.
• Citizens, not politicians, bear the cost.
• Savings are quietly transferred to the state.

Step 2 — Accumulate and revalue strategic assets

Hold and reprice hard assets such as:

• Gold (officially undervalued)
• Bitcoin (rising with inflation)
• Treasury-owned real estate and land

These assets gain value as the dollar loses value, providing balance-sheet support for a future reset.

Step 3 — Transition to a new monetary structure

When inflation becomes unmanageable or global confidence falters, introduce a new system, potentially involving:

• A partially gold-backed or Bitcoin-backed dollar.
• A dual-currency regime.
• A revaluation of reserves.
• A new financial architecture built on digital rails.

In such a scenario, the United States could stabilise its currency while allowing the old debt to fade into irrelevance.

7. The Role of the Public in the Transition

While the government quietly accumulates assets, the public is experiencing inflation as a form of economic pressure. This pressure encourages behavioural change:

• People move their savings from cash into assets (stocks, gold, Bitcoin).
• Those assets rise in price due to increased demand.
• The government indirectly benefits from the rising value of the same assets it holds.

This is the paradox:

People believe they are protecting themselves from inflation — but they are also helping the government offset its collapsing currency.

Citizens become fuel for the transition.

Their fear drives them toward the very instruments the government is using to absorb decades of excessive money printing.

8. What a Monetary Reset Might Look Like

Although no government announces a monetary reset in advance, history shows a consistent pattern:

• Severe inflation
• Loss of confidence in currency
• Rising interest burden
• Growing political instability
• Financial repression (limits on withdrawals, capital controls)
• Sudden announcement of a new system

The “reset” typically involves:

• Revaluing hard assets
• Devaluing existing currency
• Restructuring or nullifying debt
• Introducing a new currency or collateral framework

The United States may choose one of several possibilities:

8.1 A gold-revalued dollar

Gold is revalued from $42/oz to a much higher level, allowing the Treasury to repair its balance sheet.

8.2 A dual-dollar system

One currency for domestic use, another for international settlements backed partly by hard assets.

8.3 A Bitcoin-anchored digital settlement layer

Not a CBDC, but a government-controlled Bitcoin reserve used to stabilise global trade.

8.4 A partial default disguised as a “currency upgrade”

Debts are redenominated or diluted into a new framework.

Each of these scenarios wipes out a large share of the debt without explicitly declaring default.

9. The Illusion of Stability

The extraordinary aspect of this process is how ordinary it feels. Most citizens are more concerned with entertainment, celebrity scandals, sports, political point-scoring, and the minutiae of daily life. This is not their fault; the modern information ecosystem is designed to distract.

Meanwhile, quietly, steadily, methodically:

• The dollar is being devalued.
• The government is accumulating hard assets.
• Crypto is being institutionalised.
• Gold remains the silent heavyweight on the balance sheet.
• The system is preparing for transformation.

When the reset arrives, it will likely be presented as a solution to a crisis, not the culmination of decades of policy.

10. Conclusion: A New Financial Order Is Emerging

The United States faces a mathematical certainty: its $38 trillion debt can never be repaid. Traditional methods — taxation, spending cuts, economic growth — are insufficient. Default is politically impossible. That leaves only one option: a controlled devaluation of the currency combined with the strategic revaluation of assets.

Gold provides the historical foundation.
Bitcoin provides the modern counterpart.
Inflation provides the mechanism.
A monetary reset provides the resolution.

Whether this strategy is deliberate or the natural evolution of a failing system depends on interpretation. But the trajectory is clear: the dollar of tomorrow will not be the dollar of today, and the financial system that emerges may blend ancient monetary principles with digital-era tools.

The real question is not whether the United States will reset its financial system — the numbers make that inevitable — but who will benefit when it happens. Nations that understand the shift will position themselves wisely. Individuals who recognise the signs will protect themselves. Those who remain distracted may find themselves on the wrong side of history’s most significant monetary transformation in a century.