Almost everything we think we know about the economy comes from initially flawed data. Jobs data, inflation data, spending data, production data, all of it is imperfect. There is no certainty in this business.
The real problem is the welfare systems of the U.S. In the 19th century, there was immense immigration to the U.S. But there was zero government support.
Last week, the Fed acknowledged growing speculation about revaluing U.S. gold reserves to boost government finances, enable more money creation, and reduce debt.
Global gold demand rose 3% in the first half of 2025, fueled largely by central banks and Asian investors. Americans, on the other hand, sat out—or worse, sold off.
Gold revaluation is unlikely in the near term. However, the fact that it has moved from fringe speculation to official modelling is a development worth noting.
The Fed’s Colin Weiss examines gold revaluations in five countries: Curacao, Germany, Italy, Lebanon, South Africa, signal growing interest in unlocking reserve value.
