Can a President Create Wealth Out of Thin Air?
Theoretically, yes. Recently, Donald Trump and Elon Musk have been vocal about Fort Knox, the U.S. facility that houses the nation’s gold reserves. Both figures have announced plans to visit the site soon, expressing a desire to verify the presence of the gold. They claim their mission is to ensure that no gold has been pilfered. However, underlying their statements may be a more absurd and potentially perilous scheme: they are likely aware that the gold is intact and see an opportunity to leverage it for establishing a Bitcoin reserve.
The Conspiracy Surrounding Fort Knox Gold
The notion that Fort Knox is lacking its gold is a long-standing conspiracy theory often circulated among certain demographics, particularly on social media. During a meeting on February 24 with French President Emmanuel Macron, Trump raised questions about the supposed missing gold, stating, “We’re actually going to Ft Knox to see if the gold is there. Because maybe somebody stole the gold. Tons of gold.” Musk has also engaged in discussions on X regarding the topic in recent days. The reality is that the gold is likely secure, as the likelihood of someone secretly removing it without detection is virtually nonexistent. Historical records show that non-authorized individuals have only accessed the vaults three times: President Franklin D. Roosevelt in 1943, Congress with journalists in 1974, and then-Treasury Secretary Steven Mnuchin alongside Mitch McConnell in 2017, where they were photographed with gold bars.
Historical Context of Fort Knox Visits
Roosevelt’s visit in 1943 holds particular significance, as it may provide insights into utilizing the nation’s gold reserves to initiate a strategic Bitcoin reserve—an idea that, to be clear, would be quite imprudent. Nathan Tankus has extensively analyzed this topic on his blog, “Notes On the Crises,” describing the Fort Knox expedition as “a scam built atop an accounting gimmick wrapped in nonsense.” The underlying issue involves the president’s power to fabricate wealth.
The President’s Authority Over Gold Valuation
The president possesses the authority to establish the price of the United States’ gold. This power was exercised by Roosevelt in 1934 when the U.S. departed from the gold standard. At that time, the government valued gold at $20.67 per ounce, but Roosevelt declared it to be worth $35, effectively generating $2.8 billion. While this maneuver was a mere accounting strategy, it enabled investments in the World Bank and International Monetary Fund, with approximately a billion dollars utilized to navigate the first debt ceiling crisis in 1953.
Potential Financial Windfall from Gold Reserves
If Trump and Musk proceed with their visit to Fort Knox, they will discover 5,000 tons of gold, currently valued at $42 per ounce, while its market value could reach $2,800 per ounce. By simply altering the price of gold, Trump could infuse hundreds of billions into the U.S. Treasury’s balance sheet. His authority to do so is backed by Supreme Court precedent established in the case of Perry v. United States, which ruled in favor of Roosevelt during a similar crisis.
Strategic Bitcoin Reserve Proposal
So, what would happen with an influx of $800 billion? The answer might be investing in Bitcoin. The concept of adjusting gold prices to fund a Strategic Bitcoin Reserve has been circulating for some time. Senator Cynthia Lummis (R-WY) introduced the BITCOIN Act in Congress last summer. This legislation would authorize the Treasury to issue new gold certificates based on prevailing market prices and use those certificates to acquire Bitcoin.
Is This Feasible?
Could this scenario come to fruition? It’s certainly within the realm of possibility. We are living in an era that has been characterized by unpredictability and unusual developments. The prospect of the president, alongside the wealthiest individual in the world, visiting Fort Knox raises the potential that they might discover the gold is not only present but perhaps in larger quantities than anticipated.
