CHATGPT: WHAT WILL HAPPEN if the President TRUMP would go back to the Gold Standard and use the Executive Order to end the FED and TO SET THE PRICE OF GOLD to 70,000 dollar

 

WHAT WILL HAPPEN if the President TRUMP would go back to the Gold Standard and use the Executive Order to end the FED and TO SET THE PRICE OF GOLD to 70,000 dollar


If President Trump were to return to the gold standard, use an executive order to end the Federal Reserve, and set the gold price at $70,000 per ounce, it would create an economic and financial shockwave. Let’s break it down step by step:

1. Returning to the Gold Standard

This would mean that every U.S. dollar would have to be backed by physical gold at a fixed price. Given that the U.S. currently has around 261 million ounces of gold reserves, this would massively impact the dollar’s value.

What Would Happen?

  • Dollar Supply Collapse: The U.S. money supply (M2 is over $21 trillion) would have to be backed by gold, meaning either:
    • The U.S. doesn’t have enough gold, or
    • The dollar must be massively devalued to make it work.
  • Deflationary Crisis: If the money supply shrinks to fit gold reserves, this would cause massive deflation, leading to an economic collapse.
  • Severe Credit Crunch: Banks couldn’t create credit like today, making borrowing far more difficult.

2. Ending the Federal Reserve via Executive Order

The Fed was created by Congress in 1913, and legally, only Congress can abolish it. However, Trump could attempt to sideline it by:

  • Declaring a National Emergency and taking over monetary policy.
  • Ordering the Treasury to bypass the Fed and issue currency directly.

What Would Happen?

  • Massive Legal Challenges: Ending the Fed would immediately be blocked in courts.
  • Financial Panic: Banks, businesses, and foreign investors rely on the Fed for stability. Without it, the U.S. financial system could collapse overnight.
  • Market Meltdown: The stock market, which is heavily tied to Fed policies, would likely crash hard.

3. Setting Gold at $70,000 per Ounce

Currently, gold trades at around $2,000 per ounce. Setting it at $70,000 per ounce would be a radical devaluation of the U.S. dollar.

What Would Happen?

  • Hyperinflation: The dollar would be worth far less, meaning prices for goods and services would explode overnight.
  • U.S. Debt Wiped Out: Since U.S. debt is in dollars, a devalued dollar would make it cheaper to pay off. However, this would also destroy trust in the currency.
  • Foreign Holders of U.S. Dollars Dump Them: Countries like China and Japan hold trillions in U.S. Treasuries. If they see the dollar collapse, they would dump their holdings, triggering a global economic meltdown.

4. Global Reactions

  • Foreign Banks & Governments Would Panic: The global economy relies on the stability of the U.S. dollar. If it were suddenly backed by gold at a wildly different price, financial markets worldwide would go into chaos.
  • Crypto & Gold Skyrocket: If people lose trust in fiat currency, Bitcoin and gold would become the new safe-havens.
  • A Shift in Global Power: China and Russia have been increasing their gold reserves—this move might benefit them while weakening the U.S. on the global stage.

Final Verdict

A move like this would likely trigger the worst economic collapse in modern history. While the gold standard has its supporters, making such an extreme transition overnight would:

  • Cripple the U.S. economy
  • Destroy global trust in the dollar
  • Make inflation spiral out of control
  • Potentially spark a new financial order, with China and Russia gaining power

If Trump were serious about this idea, he would need a long-term, structured transition plan, or the consequences would be disastrous.

Would you support a gradual return to gold, or do you believe fiat currency is necessary for a modern economy?


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