Economists Uncut

Trump’s Plan to Kill the Fed & Income Tax – Is $100K Gold Next? (Uncut) 02-04-2025

Trump’s Plan to Kill the Fed & Income Tax – Is $100K Gold Next?

Imagine a world with no income tax. President Trump says it’s possible, but what’s the catch? And could this be the catalyst that sends gold soaring past $100,000 an ounce? In case you missed it, President Trump has been taking aim at the modern financial system, income taxes, the Federal Reserve, and even suggesting a return to pre-1913 policies. Now, while Donald Trump continues to push for a massive income tax overhaul.

 

The United States in 1870 to 1913, all tariffs, and that was the richest period in the history of the United States. Now, pre-1913, there was no income tax and the dollar was fully backed by gold. But could a system like this even work in today’s modern world? A full return to the gold standard would be unlikely, as it allow for the level of credit or spending that our system relies on and those in power benefit from.

 

However, the idea of revaluing gold or partially backing a currency with gold has been gaining momentum. If tariffs were to replace income taxes, as President Trump suggests, this would be one of the biggest shifts in economic history because something else would have to change to make it make sense. And if that’s something, was the revaluation of gold to its fundamental value, how high could we see it go? I know all of this might sound wild, but so is a current president calling to abolish income taxes.

 

So let’s get into it. Before 1913, it is true that the United States government operated without income tax. The primary source of revenue were tariffs or import taxes that raised funds and kept U.S. industry strong.

 

During this time period, the U.S. dollar was tied to gold and the system worked great. That is, until everything changed with the creation of the Federal Reserve. When the Federal Reserve was created in 1913, most Americans are unaware today that that was the same year the income taxes were created.

 

Not a coincidence. The Federal Reserve enabled the U.S. to transition from a gold-backed system to a credit-based system. But this transition required an additional stream of revenue to finance its growing debts, a shift that we’re well familiar with today that has resulted in the loss of 90% of our purchasing power.

 

Fast forward to today and the idea of eliminating income taxes and relying solely on tariffs going back to a pre-1913 sounds incredible, but it’s not that simple. See, in 1910, the U.S. government’s total spending annually was about $700 million. Adjusted for inflation in today’s dollars, that’s about $24 billion.

 

By comparison, today the U.S. government last year spent over $7 trillion. A hundred years ago, citizens didn’t expect much from their government, but today is a very different world. Citizens rely on Social Security, Medicare, Medicaid, defense spending, natural disaster relief, unemployment, the list goes on and on.

 

The reality is today, income tax combined with Social Security and corporate tax accounts for over 85% of the United States revenue, whereas tariffs account for less than 2%. But that’s not all. While the U.S.’s budget was $5 trillion, we know that they blew that out of the water.

 

They went a couple trillion over budget, meaning that tariffs are actually accounting for only 1% of total U.S. spend. So even if we were to put 100% import tax on all goods across the board, the math does not add up, which brings us to a critical point. It does not cover the bill.

 

So all this talk around tariffs replacing income tax simply doesn’t work. But if it doesn’t work on its own, what else would get it there? This is where gold enters the picture. As global debt has risen, calling into question the stability of fiat currency systems, while confidence continues to diminish in the dollar as a global reserve currency, there has been a growing momentum around the movement to revalue gold.

 

By assigning gold a much higher price, governments could use their gold reserves to significantly reduce or eliminate their liabilities. But while this might sound wild, it’s not a new concept. In fact, here in the United States in 1934, that exact thing happened.

 

Gold was revalued from $20.5 to $35 an ounce to increase the value of the gold reserves. Today, many would argue that gold’s fundamental value is far higher than its current price. Fiat currencies, which hold no intrinsic value, have flooded the system.

 

And if gold prices were revalued to align with the money supply, well, then we could see $100,000 to $150,000 or higher per ounce. Now, revaluing the gold does not mean a return to the gold standard. No, the United States could take its 8,000 plus metric tons of gold and use it as a partial backing to the dollar, or even a revaluation of let’s say $10,000 an ounce, and that would significantly reduce the United States’ debt.

 

And this would still maintain enough flexibility for credit and growth that would benefit those in power. But how would this actually work? Well, the United States in theory could act alone, but unlike 1934, today the world is far more interconnected, so the odds of that are less likely. But a coordinated effort starting at the very top would have legs, and it might be closer than you think.

 

The BIS, the Bank for International Settlements, or the Central Bank for Central Banks, and the IMF, the International Monetary Fund, have both floated the idea of the revaluation of gold as a way to strengthen currencies, fiat currencies, that again have no intrinsic value. And with the BIS classifying gold as a Tier 1 asset, many have speculated that this is laying the foundation for the inevitable re-evaluation that’s coming our way. Knowing all of this, and then looking at President Trump’s comments around tariffs, income tax, and a pre-1913 system shows a clear desire to challenge the current status quo Federal Reserve-led system that we have in place today.

 

But while I can’t say for certain that a gold revaluation is on the table for the immediate future, it does seem more and more likely as more policies align with this and momentum continues to grow. The United States would also benefit tremendously given their massive gold reserve holdings. But this wouldn’t just benefit governments, this would also benefit individuals who held gold because they would see the gold prices rise significantly and not only have that immediate effect, but it would also signal the coming close of the fiat currency life cycle of the U.S. dollar, meaning that there would be a shift of wealth into precious metals that would continue that cycle of gold rising and rising.

 

But the big question remains, what are President Trump’s true intentions? What is he signaling with these comments? Is this the start of a massive economic shift with gold at the center of it all? Tell me what you think in the comments below. I want to hear your thoughts on this. No matter what though, we know that things are changing and they are changing fast.

 

So this is going to be a wild ride for all of us, anyone who holds gold and anyone who holds dollar-dollar denominated assets because the landscape that we know today will probably not be the same tomorrow. But there is one thing we know for certain and that is that the conversation around gold’s role in the global financial system is accelerating. And if history tells us anything, it’s that massive financial shifts don’t wait for permission, they happen whether we’re ready or not.

 

Most people don’t fully understand the role of gold and silver in protecting wealth during economic transitions, but thankfully this is why we have put together a free ITM gold and silver guide to help you learn because this is not just about hype, this is about education. The financial system is changing and those who see it take action and are prepared will be in a very different position than those who wait until it’s too late. So do not be one of those people who wait until it’s too late.

 

Go ahead and click the link in the description below. You can scan the QR code, get your free guide today as an important first step on your journey to protecting yourself with physical gold and silver against what’s coming next. And if you want to take it a step further and create a strategy that makes sense for you, you can always talk to one of our expert analysts who have decades of experience in helping people just like you not only protect themselves against what’s coming next, but set themselves up for success so that you are in a position of opportunity for this coming currency reset.

 

In order to do that, again, click on the link below, call us at the number below, or scan the QR code. There’s going to be a lot more to cover on this so stay tuned in the coming weeks. I will be continuing to talk about this.

 

If you’re not already, please make sure to subscribe so you don’t miss any of these important updates. And as always, I’m Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.

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