Commodities

Kitco News: The World Is Being Repriced Right Now

Posted on by Andrew Packer

President Trump is off to a rapid start in his second term. Markets are a bit skeptical about the impact of tariffs. However, investors remain on board with polices like deregulation and low taxes.

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    • But Trump is looking at ways to make big changes in how the U.S. government manages his assets. He’s signed an executive order to create a sovereign wealth fund. Such a fund could better monetize the country’s assets.

    That includes assets such as land. The U.S. government owns most of the land in the Western United States. Selling off some of that land, or extracting the resources from that land, could generate billions annually that wouldn’t need to be taxed or borrowed.

    That move couldn’t come at a better time. Many nations are sitting on record debt levels. And issuing new debt isn’t having the same impact on GDP that it used to. Over the past 20 years, nations have created $185 trillion in interest-bearing debt. That debt has only generated $46 trillion in GDP growth.

    The creation of a sovereign wealth fund could lead to a revaluation of U.S. gold holdings. Currently, the metal trades over $2,900 per ounce. However, it’s still listed on the government’s books at just over $40. And a sovereign wealth fund could also own digital assets such as bitcoin.

     

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    • To see the full ways the United States could better reprice its financial assets, click here.