Could This Be the Biggest Gold Announcement in Decades? Andy Schectman & Michelle Makori
Andy Schectman and Michelle Makori discuss the possibility of Trump announcing gold-backed U.S. Treasuries on July 4th, exploring how this could solve America's debt crisis while maintaining the dollar as a medium of exchange. They analyze the Genius Act, Fed policy changes under new Chair Kevin Walsh, and China's parallel financial infrastructure being built through gold accumulation and alternative payment systems like Embridge.
Summary
The conversation opens with discussion of a preliminary Iran nuclear agreement framed as a memorandum of understanding rather than a binding deal, with significant discrepancies between U.S. and Iranian versions regarding sanctions relief and missile dismantlement timelines. Schectman argues markets are trading irrationally by rallying on geopolitical de-escalation when gold should be rising due to fundamental inflation concerns.
The core thesis centers on a potential July 4th announcement of gold-backed Treasuries as a solution to America's fiscal and monetary crisis. Schectman explains that gold-backed Treasuries (not a gold standard) would allow the U.S. to maintain the dollar as a medium of exchange and unit of account while using gold as the reserve asset backing the long end of the Treasury curve. This mechanism would theoretically enable the government to inflate while gradually bringing back manufacturing by making American exports more competitive through dollar devaluation.
Key policy mechanisms discussed include the Genius Act (requiring short-term Treasury backing for stablecoins like Tether, creating synthetic demand for the front end of the curve) and the Clarity Act (making interest non-transferable, forcing accumulation of gold rather than interest payments). Schectman theorizes that Tether's massive gold purchases—exceeding all countries except Poland—could be part of a coordinated strategy to accumulate gold through proxies rather than direct government purchases that would signal intent too openly.
The conversation examines new Fed Chair Kevin Walsh's appointment of Paul Winfrey, who authored the Federal Reserve chapter in Project 2025 proposing gold-convertible Treasury instruments and parallel commodity-backed monetary systems. This hire is analyzed as potentially signaling administration alignment with gold-backed monetary framework ideas.
Schectman discusses China's parallel strategy: building alternative financial infrastructure (Embridge, SIPS, Shanghai Metal Exchange) while accumulating gold for 19 consecutive months. He argues this represents a two-track approach addressing both reserves (physical gold) and payments (alternative settlement networks). The conversation notes that countries like Saudi Arabia, UAE, Hong Kong, and Thailand participating in Embridge are simultaneously members of BRICS, suggesting coordinated global monetary system redesign.
The discussion addresses how gold-backed Treasuries would function: governments could issue 50-year bonds redeemable in gold or dollars with zero coupon, creating zero upfront borrowing costs. As non-transferable interest is forced into gold purchases, gold prices would appreciate organically while the dollar weakens, making U.S. manufacturing competitive without explicit government revaluation.
Schectman assigns a 50/50 probability to a July 4th announcement, increasing the odds if Judy Shelton (a vocal gold-backing advocate) is hired as a second Fed advisor. He emphasizes that central banks' inelastic gold purchasing regardless of rates or currency strength indicates they understand where the system is heading. The conversation concludes that even if July 4th passes without an announcement, the fundamental trajectory toward higher gold and weakened dollar reserve status appears inevitable given debt levels and geopolitical alternatives being constructed.
About this episode
Michelle Makori, President & Editor-in-Chief, Miles Franklin Media, sits down with Andy Schectman, Founder & CEO, Miles Franklin Precious Metals, to discuss a theory that is gaining traction among gold investors ahead of July 4th: could the Trump administration unveil a major gold-related initiative that reshapes the global monetary system? Schectman explains why he believes there is a growing possibility that gold-backed U.S. Treasury instruments could emerge as part of a broader strategy to address America’s debt burden, restore manufacturing competitiveness, and navigate the accelerating shift toward a multipolar financial system. The conversation explores the implications of Kevin Warsh’s appointment as Fed Chair, the hiring of Project 2025 contributor Paul Winfree, the passage of the GENIUS Act, China’s continued gold accumulation, the rollout of mBridge, and the growing challenge to the dollar-centric financial order. In this episode of The Real Story with Michelle Makori: - Iran deal: peace agreement or temporary pause? - Why gold is rallying despite de-escalation - Kevin Warsh, inflation metrics and Fed policy - Gold-backed Treasuries explained - Why Andy gives a July 4 announcement a 50/50 chance - Gold, the dollar and Triffin’s dilemma - China, mBridge and the alternative financial system - Singapore’s new gold-clearing initiative - Could Western commodity pricing be losing control? #Gold #GoldPrice #Trump #FortKnox #FederalReserve #KevinWarsh #JudyShelton #USDebt #Dollar #GoldBackedTreasuries You can sign up for our newsletter here: https://milesfranklin.com/sign-up/ Follow Michelle Makori on X: https://x.com/MichelleMakori Follow Miles Franklin Media on X: https://x.com/MilesFranklinCo Follow Andy Schectman on X: https://x.com/ASchectman 00:00 Coming Up 01:15 Introduction 03:46 Iran Deal Breakdown 09:35 Gold Reaction 14:02 Warsh Fed Shift 18:13 Genius Act Explained 21:13 Project 2025 Gold Link 25:39 Debt Trap Exit Plan 29:12 Tether Gold Proxy Theory 32:35 De Treasurization Era 36:03 Proxy Gold Revaluation 36:59 Mechanics of Gold Treasuries 38:29 mBridge and CBDC Rails 40:44 BRICS Unit and Gold Settlement 44:59 Asian Gold Clearing Hubs 48:52 COMEX Deliveries and Trump 51:31 July 4th Announcement Odds 54:03 Why Manufacturing Needs Devaluation 55:39 Debt Spiral and Triffin Dilemma 01:00:15 Wrap Up and Central Bank Signal 👍 Like, 🔔 Subscribe, and Stay Informed Join Miles Franklin Media for expert interviews, market insights, and real-time coverage of gold, silver, Bitcoin, and global economics. Hit the bell to get notified the moment new content drops – don’t miss a move in the markets. ___________________ Miles Franklin: 📞 Call us: 1-952-929-7006 📧 Email us: [email protected] 🔗 Website: https://milesfranklin.com/ ▶️ YouTube: https://youtube.com/MilesFranklinCo?sub_confirmation=1 📱 X: https://x.com/MilesFranklinCo 📸 Instagram: https://www.instagram.com/milesfranklinmedia/ 💼 LinkedIn: https://www.linkedin.com/in/miles-franklin-9a6632369/ 📘 Facebook: http://fb.com/MilesFranklinCo 📩 For media inquiries, contact: [email protected] 📺 About Miles Franklin Media Join Miles Franklin Media for unfiltered financial and economic news and insights. Through expert interviews and real market intelligence, we cut through the noise and challenge the mainstream narrative. Anchored in the principles of sound money, we uncover the truth about money, markets, macroeconomics, geopolitics, and power – delivering credible insights to help you protect your wealth, future, and freedom. 🏦 About Miles Franklin Miles Franklin is a trusted leader in wealth preservation, with over $11 billion in precious metals sales since 1989. Specializing in gold and silver, we help clients safeguard their wealth with real assets that stand the test of time. ___________________ Disclaimer: The views and opinions expressed in this video are those of the individual speakers and do not necessarily reflect the views of Miles Franklin Precious Metals, its affiliates, owners, anchors, producers or hosts. This content is provided for informational and educational purposes only and is not intended as financial, legal, or investment advice. Nothing said in this video should be construed as a recommendation to buy or sell any financial asset. You should always consult with a qualified financial advisor, legal professional, or tax expert before making any investment decisions. Investing involves risk, including the potential loss of principal. By watching this video, you agree that neither the hosts, guests, nor Miles Franklin Media are responsible for any investment decisions you make based on the information presented. Use of this content is at your own risk.
Key Insights
- Schectman argues markets trade on central bank reaction expectations rather than fundamental stability, with every headline becoming a trigger for Fed-driven speculation rather than real economic conditions.
- Gold should rally on inflation fundamentals and geopolitical risk, but instead only rallies when markets believe the Fed will cut rates, despite inflation remaining elevated at pandemic levels.
- The Genius Act structurally pins the front end of the Treasury curve to the floor by requiring all money movement to be backed by 90-day or less short-term Treasuries, effectively neutering the Fed's dual mandate.
- Gold-backed Treasuries would separate the store-of-value function (gold) from the medium-of-exchange function (dollar), allowing the U.S. to maintain dollar dominance in trade while using gold to restore fiscal discipline.
- Tether's purchases of gold—exceeding Poland's accumulation—combined with CEO Bo Hines' Trump administration background suggests a potential coordinated arrangement where Tether serves as a government proxy for gold accumulation.
- Paul Winfrey's hiring by Fed Chair Walsh and his authored chapter on gold-convertible Treasuries in Project 2025 represents the first public signal that the new administration may pursue gold-backed monetary framework changes.
- Central banks' inelastic gold purchasing for 18+ consecutive months regardless of interest rates or currency strength indicates they understand the future monetary system direction better than markets.
- A 50-year gold-backed Treasury at $139,000 per ounce would pay back only 120 ounces versus today's 4,500 ounces, creating the mathematical mechanics for sustainable debt servicing under currency devaluation.
- China's simultaneous strategies of maximum gold accumulation and building alternative payment rails (Embridge, SIPS, Shanghai Metal Exchange) represent a deliberate two-track approach to reserve asset and payment system redesign.
- The U.S. faces only three paths out of debt: produce more than consumed, inflate, or default; gold-backed Treasuries represent the mechanism to achieve all three simultaneously while bringing manufacturing home.
- Van Eck's emerging market bond team calculated that dollar loss of reserve status could drive gold to $139,000, implying the gold market has already priced in eventual reserve currency restructuring.
- The Iran deal's discrepancies between U.S. and Iranian versions—with Iran seeking full sanctions relief upfront and U.S. demanding disarmament first—suggests the agreement is primarily a geopolitical pause rather than a structural resolution.
Topics
Transcript
[0:00] July 4th will be a big deal. I don't think I'll go to sleep July 3rd. He is going to make a speech. We're going to go to gold back treasuries. This is their one path out where you can inflate and you can also bring back manufacturing to bring back your ability to produce more than you consume. Gold goes higher, the dollar goes lower. You bring back manufacturing at zero upfront cost if you can back the back end of the treasury market with gold. >> So, what are the odds that you're giving this now? >> 5050. 5050 chance that come July 4th, [0:30] Trump announced a goldbacked long-term treasury. >> If you put the pieces…
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