21
May 2025
Stackable, Not Hackable
Stackable, Not Hackable
On Friday, credit rating agency Moody’s downgraded U.S. debt. This isn’t just a technical adjustment—it’s a thunderclap warning. The downgrade signals rising borrowing costs ahead and underscores an ominous inflationary reality: the U.S. faces over $36 trillion in on-balance-sheet debt and another $200 trillion in off-balance-sheet obligations. We’re watching the slow bleed of the dollar’s dominance and the dawn of a very different financial era.
The Bond Mirage
Following the downgrade, longer-dated U.S. Treasury yields rose to the psychologically significant 5% mark. This should alarm millions of American investors—especially retirees—who are still relying on bond funds for stability. Unfortunately, the real risk may be hiding in plain sight.
As Ray Dalio, founder of Bridgewater, the world’s largest hedge fund, recently explained:
“Credit ratings understate credit risks because they only rate the risk of the government not paying its debt. They don't include the greater risk that the countries in debt will print money to pay their debts, thus causing holders of the bonds to suffer losses from the decreased value of the money they're getting.”
Translation? You might get your interest payments—but the value of those dollars could be eroding faster than you realize.
Even Treasury Secretary Scott Bessent acknowledged this dynamic, warning that bond investors will lose money. With U.S. debt growing at 6.7% per year, while bond yields sit at only 5%, long-term bondholders are on the losing end. And the worst part? Roughly 20% of all U.S. Treasuries are held by Americans through retirement-focused bond funds. In our view, many Americans remain dangerously at risk.
The Case for Gold Has Never Been Stronger
While traditional assets wobble, gold is stepping back into the limelight in a powerful way. And a series of new developments underscore this resurgence.
First, there’s a monumental regulatory shift: as of July 1, 2025, physical gold will be reclassified as a Tier 1, High-Quality Liquid Asset (HQLA) under Basel III banking rules. This means that for the first time in the modern era, U.S. banks can count gold at 100% of its market value on their balance sheets—just like Treasury Bills or even certain types of real estate.
This change corrects decades of absurd misclassification, which wrongly labeled gold as illiquid and risky. It’s a historic step that’s likely to unlock new institutional demand, without any increase in supply—a classic setup for higher prices.
Internationally, the move aligns with similar actions. China recently approved gold purchases by insurance companies, signaling a strategic shift in how it’s safeguarding wealth.
And it’s not just regulators—central banks are voting with their vaults. In Q1 2025 alone, they bought over 240 metric tons of gold. According to the World Gold Council, 30% of central banks plan to add more gold in the months ahead—largely funded by selling off U.S. dollar assets.
Crypto Cracks
At the same time, the cracks in crypto are widening. Coinbase, the largest U.S.-based crypto exchange, and a newly minted member of the S&P 500, just admitted its India-based employees took bribes to sell customer data. The company is now scrambling to deny that the data sales have been ongoing for months, as alleged by insiders.
This scandal follows a massive $1.5 billion hack of Bybit in February.
While all investments carry risk, gold’s appeal lies in its simplicity. As we like to say: “Stackable, not hackable.” You can hold it, store it, and it doesn’t vanish in a keystroke.
States Are Reclaiming Sound Money
Closer to home, we’re seeing a fascinating trend: U.S. states reclaiming monetary sovereignty. Just last week, Missouri passed legislation reaffirming gold and silver as legal tender. This is part of a growing national movement, with more states pushing to give citizens protection from federal monetary recklessness and its destructive impact on the dollar’s purchasing power.
As more states move to recognize gold as currency, potential tax advantages for gold holders could follow. Combine that with the fact that gold has outperformed the stock market this century, and you begin to see why this isn’t just a hedge—it’s a powerful, underappreciated long-term asset.
A Call to Wake Up—and Take Action
The financial world is changing. Fast.
America’s fiscal health is deteriorating, our monetary integrity is being diluted, and yet most citizens remain asleep at the wheel. But you don’t have to.
Call our team today. We’ll walk you through the specifics of how to wisely allocate to physical gold and protect your wealth in uncertain times.
God bless and God bless America.
Past performance is not indicative of future results.
On Friday, credit rating agency Moody’s downgraded U.S. debt. This isn’t just a technical adjustment—it’s a thunderclap warning. The downgrade signals rising borrowing costs ahead and underscores an ominous inflationary reality: the U.S. faces over $36 trillion in on-balance-sheet debt and another $200 trillion in off-balance-sheet obligations. We’re watching the slow bleed of the dollar’s dominance and the dawn of a very different financial era.
The Bond Mirage
Following the downgrade, longer-dated U.S. Treasury yields rose to the psychologically significant 5% mark. This should alarm millions of American investors—especially retirees—who are still relying on bond funds for stability. Unfortunately, the real risk may be hiding in plain sight.
As Ray Dalio, founder of Bridgewater, the world’s largest hedge fund, recently explained:
“Credit ratings understate credit risks because they only rate the risk of the government not paying its debt. They don't include the greater risk that the countries in debt will print money to pay their debts, thus causing holders of the bonds to suffer losses from the decreased value of the money they're getting.”
Translation? You might get your interest payments—but the value of those dollars could be eroding faster than you realize.
Even Treasury Secretary Scott Bessent acknowledged this dynamic, warning that bond investors will lose money. With U.S. debt growing at 6.7% per year, while bond yields sit at only 5%, long-term bondholders are on the losing end. And the worst part? Roughly 20% of all U.S. Treasuries are held by Americans through retirement-focused bond funds. In our view, many Americans remain dangerously at risk.
The Case for Gold Has Never Been Stronger
While traditional assets wobble, gold is stepping back into the limelight in a powerful way. And a series of new developments underscore this resurgence.
First, there’s a monumental regulatory shift: as of July 1, 2025, physical gold will be reclassified as a Tier 1, High-Quality Liquid Asset (HQLA) under Basel III banking rules. This means that for the first time in the modern era, U.S. banks can count gold at 100% of its market value on their balance sheets—just like Treasury Bills or even certain types of real estate.
This change corrects decades of absurd misclassification, which wrongly labeled gold as illiquid and risky. It’s a historic step that’s likely to unlock new institutional demand, without any increase in supply—a classic setup for higher prices.
Internationally, the move aligns with similar actions. China recently approved gold purchases by insurance companies, signaling a strategic shift in how it’s safeguarding wealth.
And it’s not just regulators—central banks are voting with their vaults. In Q1 2025 alone, they bought over 240 metric tons of gold. According to the World Gold Council, 30% of central banks plan to add more gold in the months ahead—largely funded by selling off U.S. dollar assets.
Crypto Cracks
At the same time, the cracks in crypto are widening. Coinbase, the largest U.S.-based crypto exchange, and a newly minted member of the S&P 500, just admitted its India-based employees took bribes to sell customer data. The company is now scrambling to deny that the data sales have been ongoing for months, as alleged by insiders.
This scandal follows a massive $1.5 billion hack of Bybit in February.
While all investments carry risk, gold’s appeal lies in its simplicity. As we like to say: “Stackable, not hackable.” You can hold it, store it, and it doesn’t vanish in a keystroke.
States Are Reclaiming Sound Money
Closer to home, we’re seeing a fascinating trend: U.S. states reclaiming monetary sovereignty. Just last week, Missouri passed legislation reaffirming gold and silver as legal tender. This is part of a growing national movement, with more states pushing to give citizens protection from federal monetary recklessness and its destructive impact on the dollar’s purchasing power.
As more states move to recognize gold as currency, potential tax advantages for gold holders could follow. Combine that with the fact that gold has outperformed the stock market this century, and you begin to see why this isn’t just a hedge—it’s a powerful, underappreciated long-term asset.
A Call to Wake Up—and Take Action
The financial world is changing. Fast.
America’s fiscal health is deteriorating, our monetary integrity is being diluted, and yet most citizens remain asleep at the wheel. But you don’t have to.
Call our team today. We’ll walk you through the specifics of how to wisely allocate to physical gold and protect your wealth in uncertain times.
God bless and God bless America.
Past performance is not indicative of future results.
