What Will 4 More Years of a Trump Administration Usher in for Crypto Currencies and Gold?

January 20th 2025 will be the beginning of 4 more years of Donald J. Trump being President. Everyone on the right of politics believes these will be 4 glorious years. Everyone on the left it seems believes, at least according to President Biden’s farewell speech, an ushering in of oligarchy. Oligarchy is defined as “a small group of people having control of a country, organization, or institution” according to Oxford.

Who does the alleged oligarchy consist of? It would be billionaires, Trump, Elon Musk and Vivek Ramaswamy. The latter two are creating a non-governmental agency called DOGE which stands for Department of Government Efficiency. While this agency is slated to cut government waste, it is only promising thus far to do what President Clinton did during a couple years of his term, cut the budget deficit. Elon Musk originally said they wanted to cut $2 trillion from the budget but is already walking that number back to a lower figure. 

But one thing most don’t realize with these cuts is the same mistake when in the past I have pointed out that Clinton didn’t do it either, and in fact no President since at least Reagan has done it and that is lower the national debt. Cutting the budget doesn’t eliminate the addition of more debt. It’s the elephant in the room that goes unchecked by everyone President since Reagan, even though over and over again each President claims they will reduce the national debt.

What most people don’t also realize is the last time a non-government agency came into existence was under Woodrow Wilson as a certain group of oligarchs voted in the existence of the Federal Reserve which has the name “Federal” in it to make it seem like it is part of the government. In reality, it is the non-government agency that only serves to allow our Congress an unlimited amount of money printed out of thin air and the only requirement is that said Congress pays interest to the oligarchs who created it.

This Federal Reserve got involved with creating Federal Reserve Notes that used to be redeemable into gold coin (and silver) but in 1933 there was a bank run going on and something had to be done to stop it so a bank holiday was declared, banks closed, and FDR said don’t you worry about a thing, your money will be there when the banks opened again. But what he did was through an executive order disallow the exchange of Federal Reserve Notes into gold and also outlawed the ownership of gold for any amount over $100.  Then in 1934 he valued gold higher and thus reducing the purchasing power of the Federal Reserve notes.

So far I am just giving you the overview of things but I have explained all this in detail in previous articles and also in my book Buy Gold and Silver Safely which you can find for free here.I go into even further detail in my book Illusions of Wealth which you can find on Amazon.com.

There has only been one Presidential candidate over the years who has said we need to address the national debt issue. During the 2016 election, not one Democrat had anything to say about the national debt. Republicans are allegedly the “conservative” party but there is nothing conservative about them as they too, even when having control of the House and Congress, continue to add to the debt. And once in office, their only goal is to get elected again and that is where much of their time is spent. What is really needed is what Ron Paul suggested when he ran for President in 2006 and that is to cut government many agencies out completely. For this both sides of the media tried to paint him as a tin foil hat wearing candidate and he was disregarded by all media as a quack, conspiracy nut. Of course they also labeled him as a racist and antisemite. Sound familiar? At least they didn’t try and shoot him! There have been stories of other Presidents eliminated for various reasons but nothing that can be proved.

One of those Presidents was Andrew Jackson who presided over the U.S. 2nd National Bank. Jackson thought that this bank had too much power concentrated in the hands of a few and thus ended the bank in 1836. “Jackson thought the Bank put too much power in the hands of too few wealthy American private citizens, and the majority of stockholders were foreign investors with allegiances to other governments.” But leading up to this ending of the bank there was an assassination attempt on his life. He survived.

So we have 3 examples now of oligarchs interfering with government, but only one of them is still ongoing, and supplies the means to which government spending can get out of control like it has. Funny how no one talks about the Federal Reserve but when current Fed Chairman Powell was asked if he was worried about losing his job once President Trump was sworn in, his reply was he wasn’t concerned about the Fed losing its independence.

The question then becomes, what does President Trump have up his sleeve when it comes with resolving our national debt issues and the unsustainable path our nation is on to a failed experiment with your current monetary system? To ask this another way, how do you get rid of the elephant in the room? Ignoring it isn’t an options.

We have already seen the rise of alternative currencies and the price of gold overall, but what will Trump choose to back? I honestly believe he went to crypto conferences to garner votes because that’s what politicians do, pander. I do know that Trump is a fan of gold. So what’s it going to be for him?

For now, to answer this question one must look at what the leading banker of the world says, the CEO of JP Morgan, Jamie Dimon. He is labeling the most well known crypto currency a ponzi scheme and as useless as a pet rock. These words are quite harsh but I can’t disagree. Crypto currencies right now have had a great run but it takes new money coming in for you to get your money back, hopefully with profit. That’s the definition of ponzi. While I do think it’s ok to “trade” crypto and do so with money you can afford to lose, it shouldn’t be where all your investments are. It would behoove you to put some into gold and silver today at these present discounted rates and possibly further discounts available over the next few months as Trump transitions into office.

But the real scare for me with crypto is another area that no one talks to anyone about. If banking laws change and banks no longer will work with your account where you hold your crypto (or add your crypto back to from personal possession), how will you capture that wealth? What happens to the value if everyone wants out at once? Where is your safe haven?

To answer this question that scares me, could banks actually do this? Banks work primarily with Federal Reserve Notes, or today, the digital Federal Reserve Note. While we are heading towards digital transparency, only banks and the biggest bank, the Federal Reserve has control of what happens next. I would listen to Jamie Dimon and assume at some point banks will come after the crypto world. While they may create a new system of a digital currency to replace the Federal Reserve Note, you can bet it will be in their best interest, not in the interest of all the holders of crypto currencies.

What does this mean for gold and silver? The answer is simple. Gold and silver don’t change. You bury it in your back yard and dig it up today, it’s the same gold and silver. It’s exchangeable into whatever the currency or as I say, “scrip” of the day is.

In the next few years, gold and silver are going to head much higher as our national debt issues will not be resolved under this administration or any other. Congress will not eliminate entire departments nor will they do anything to fix our fraud of a health system. Inflation is going to get out of control at some point and the Fed will as usual be behind in their actions. The interest on the debt will not be able to be paid and it becomes a choice of pay the interest with more printed money (good for gold) or cut departments entirely (not a real solution our government is willing to take). Our government will spend till the cows come home and the cows ain’t coming home. They are out in the pasture trying to eat up the last grass known as a functioning U.S. economy.

We already see signs of failure with rising homelessness and city governments running out of money. California will lead the nation in running out of money first with failed policies and as California goes, so goes the nation.

The stock market will eventually get his as well and sooner than later. If you have a 401k, it’s a good idea to put it in the fixed account, that hopefully can keep pace with inflation, rather than take the risk of a multi-year downturn. Gold and silver mining stocks will also do well. Oil stocks too. Crypto there will eventually be a rush to the door and as the Federal Reserve notes lose purchasing power, only gold and silver will be left standing.

What about a Trump wild card in ending the Fed? While there is a chance of this occurring, we would have to hit rock bottom first. If we hit rock bottom during Trump’s administration, which is possible, it may usher in 20 or more years of socialism. It’s not out of the question.

There will be a time to sell your gold and silver but only when you can buy beaten down assets like stocks or real estate. Talk to me in 2028.

About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534