The gold re-evaluation thing as an accounting trick
I saw it mentioned first just before Orange Man took office
I think it was Hayes's blog
Here, found it. December 18, 2024. It might have been mentioned by someone else earlier on, during sleepy Joe's reign, but it wouldn't have had the same resonance.
Currently, gold is valued at $42.22/oz on the American balance sheet. Technically speaking, the Treasury issues a gold certificate to the US Federal Reserve (Fed), which the Treasury values at $42.22/oz.
Suppose Bessent can convince the US Congress to change the statutory price of gold, thus devaluing the dollar vs. gold. In that case, the Treasury’s General Account (TGA) at the Fed receives a dollar credit, which can be spent on the economy. The larger the devaluation, the higher the TGA balance immediately grows.
This makes sense because, essentially, dollars are being created out of thin air by valuing gold at a specific price. Every $3,824/oz increase in the statutory price of gold generates a $1 trillion increase in the TGA. For example, adjusting the carrying cost to the current spot price of gold would generate a $695 billion TGA credit.
(My emphasis)
Keep in mind Bessent is the puppet master now. Powell is dubbed towel boy (or worse) because he can't and won't do much, despite the apparent position of absolute power he seems to hold. It's the curse of the Fed chair: nominally independent, but factually in serfdom to politics.
Personally, I don't think this will happen. There are subtler ways of printing without printing, and my guess is they will be picked over the very apparent and likely too noisy gold accounting trick.
Bessant is an interesting and enigmatic fellow.