America’s Trillion-Dollar Reserve

America’s soaring debt is a problem. With the country’s debt-to-GDP ratio now exceeding 120%, it is becoming imminent.

And this week’s episode of Government Shut Down theatre shows, once again, we’re politically incapable of even talking about it.

Critics argue we can’t look at America’s debt without considering its assets.

For example, the United States is the largest landholder in the country, owning over 70% of some Western states. And, thanks to gold’s surge over $3,800 per ounce this week, America’s gold reserves have now topped $1 trillion for the first time:

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The value of America’s gold holdings now exceeds $1 trillion (Source: Kobeissi Letter/X)

Of course, that gold remains unaudited in Fort Knox, the basement of the New York Federal Reserve Bank, and no doubt a few other more secret places.

Even at this price, $1 trillion is a fraction of the $37 trillion on the debt side of the government ledger.

And gold’s value isn’t necessarily rising – the dollar is collapsing, practically in real-time. Year-to-date, the U.S. dollar has declined by over 10% against other currencies. In crypto, that’s just a day of volatility. In the forex market, it’s an earthquake.

All things being equal, our forecast for the gold price remains intact.

As is our forecast for a terrifying bull market. Gold is just one asset of many rising during the Trump era grand realignment of the geopolitical and global monetary systems.

We’ll concede to gold’s critics that it’s an inert metal that just sits there, generating no income. But, as such, it’s also the perfect barometer for the health of the fiat monetary system.

Judging by gold’s massive rally the past few years – and the fact that it’s outperformed the S&P 500 century-to-date, sometimes being in the right place and doing nothing is the right move.

~ Addison

P.S. Our forecast for significantly higher gold prices continues to move in the right direction. We’ll also note that even if gold reaches our price target, it wouldn’t be nearly enough to pay off the national debt.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

America’s soaring debt is a problem. With the country’s debt-to-GDP ratio now exceeding 120%, it is becoming imminent.

And this week’s episode of Government Shut Down theatre shows, once again, we’re politically incapable of even talking about it.

Critics argue we can’t look at America’s debt without considering its assets.

Turn Your Images On

The value of America’s gold holdings now exceeds $1 trillion (Source: Kobeissi Letter/X)

Of course, that gold remains unaudited in Fort Knox, the basement of the New York Federal Reserve Bank, and no doubt a few other more secret places.

Even at this price, $1 trillion is a fraction of the $37 trillion on the debt side of the government ledger.

All things being equal, our forecast for the gold price remains intact.

As is our forecast for a terrifying bull market. Gold is just one asset of many rising during the Trump era grand realignment of the geopolitical and global monetary systems.

We’ll concede to gold’s critics that it’s an inert metal that just sits there, generating no income. But, as such, it’s also the perfect barometer for the health of the fiat monetary system.

Judging by gold’s massive rally the past few years – and the fact that it’s outperformed the S&P 500 century-to-date, sometimes being in the right place and doing nothing is the right move.

~ Addison

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

Altman’s claim is that not only will people get more done with less with AI, they will be happier because their work is easier and…more fun. This follows a report from Anthropic, responsible for the Claude AI, that said AI increases productivity.

I will say I’m skeptical. But we’ve been told the nature of exponential change is that it comes at you faster than you can measure or observe. And if that is true, it will have consequences in 2026 for employees and investors. Big ones.

For employees–those who are not replaced by automated processes and robots–it will mean secure employment and higher wages. A small number of winners getting richer.

American consumers don’t feel – or are at least unaware of – monetary nuance. They’re just getting the bill.

Trump declared last night that “affordability doesn’t mean anything to anybody,” dismissing the term as a “Democrat scam”— this despite recently proclaiming
himself the “Affordability President” on Truth Social.

That’s the current state of political messaging on cost-of-living: part whiplash, part vaudeville. But voters aren’t confused. Grocery prices are still 30% higher than 2020. Tariffs add daily friction. Utilities, rent, houses, tuition, healthcare continue their daily grind upward.

During a Fed rate cut cycle, bond yields follow, which typically means bond prices tick higher. If you buy bonds now, you’ll be getting in ahead of the crowd.

And if this tech wreck shapes up anything like 2000-01, investors will want to get out fast. Despite the debt mess in Washington, bonds will again look “safe.”

One minor bonus: if you buy now, you’ll lock in higher yields before the next Fed rate cut, which is expected to come one week from today.

But Green is describing more than just a new calculation. He’s talking about a new form of misery.’ It’s a poverty where you may still have most of the accoutrements of middle-class life. But your relationship with the financial elite has changed: you are indentured to the credit industry — for life.

For employees–those who are not replaced by automated processes and robots–it will mean secure employment and higher wages. A small number of winners getting richer.

American consumers don’t feel – or are at least unaware of – monetary nuance. They’re just getting the bill.

During a Fed rate cut cycle, bond yields follow, which typically means bond prices tick higher. If you buy bonds now, you’ll be getting in ahead of the crowd.

And if this tech wreck shapes up anything like 2000-01, investors will want to get out fast. Despite the debt mess in Washington, bonds will again look “safe.”

One minor bonus: if you buy now, you’ll lock in higher yields before the next Fed rate cut, which is expected to come one week from today.