Is this not how you read it? Does he need to go out on the streets of Washington D.C. and yell out “I won’t hike rates” for the street to understand that he is a dove? This is the playbook of a central bank yielding to political power. Change the measures of inflation so that you don’t have it as high anymore.
Why should we believe the credibility of a central bank that says it will hike rates, has missed its inflation target for 5 years, and is still contemplating the hike? I think there is no credibility to what the Fed says until it actually hikes rates. Until then, it’s just talk and the inflation will not come down by talk.
The U.S. BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act) is a legislative proposal designed to establish a federal Strategic Bitcoin Reserve. It directs the U.S. Treasury to acquire 1 million Bitcoin over a five-year period to create a non-inflationary national asset. The intent is to strengthen the national balance sheet, hedge against long-term fiat currency devaluation, and establish a digital equivalent to U.S. gold reserves.
The main mechanism in Senator Cynthia Lummis’s BITCOIN Act (and related bills) involves revaluing U.S. gold certificates held by the Federal Reserve. Gold is currently booked at the statutory price of ~$42.22/oz (totaling ~$11 billion), while market value is hundreds of billions higher (e.g., ~$750B+ depending on prices). The bill would reissue certificates at market value, with the difference (a large accounting gain) remitted to the Treasury and used to fund Bitcoin purchases in a “budget-neutral” way. This is an accounting maneuver to unlock “paper” gains.
The gold certificate revaluation accounting maneuver would effectively add to the money supply. It is widely viewed as a form of “backdoor money printing” or monetization of an existing asset, though it doesn’t involve issuing new debt or physically printing currency.
How It Works Mechanically
• U.S. gold is valued on Treasury books at the old statutory price (~$42.22/oz), making gold certificates held by the Fed worth only ~$11 billion.
• Revaluing to (or near) market price (~hundreds of billions to $750B+ depending on gold prices) creates a large accounting gain.
• The process typically involves:
1. Treasury/Fed exchanging or reissuing certificates at the new higher value.
2. The Fed credits the Treasury General Account (TGA) with newly created reserves/dollars equal to the difference.
• No new Treasury borrowing or debt ceiling impact occurs. The Treasury gains spendable funds in its Fed account.
When the Treasury spends these funds (e.g., to buy Bitcoin for a strategic reserve), the money enters the banking system:
• It increases bank reserves (part of the monetary base).
• As it circulates, it can expand broader money supply measures like M1/M2 through lending and deposits.