Senator Rand Paul Slams Uni-Party

Debt Crisis Drives Central Banks to Gold Over Failing U.S. Dollar

Senator Rand Paul often faces backlash for exposing the wasteful spending and mismanagement of taxpayer funds by the "uni-party" in Washington. He argues that the U.S. national debt, fueled largely by government waste, fraud, and abuse, is pushing major banks to favor gold over the dollar. Is this shift deliberate? Is the dollar's decline unavoidable? Since 1996, foreign banks have increasingly favored gold over U.S. Treasury securities, likely signaling a decline in confidence in the dollar.

The Surge in U.S. Debt

The U.S. national debt has surged from $370 million in 1970 to $37 trillion, a trajectory made worse by persistent budget deficits and loose monetary policies. Add to that the waste, fraud, and abuse the DOGE has just begun to uncover, and the ridiculous use of taxpayer funds, like $350 million worth of materials left sitting in a desert, paid for by the Biden regime, the $1.1 billion in wasteful spending by government agencies, or the FED burning through money on building projects and other malarkey, then it’s easy to see how we got here.

This debt burden, coupled with rising interest payments, consumes more than 20% of government income. Central banks, particularly in emerging markets like China, Russia, India, and Turkey, are taking heed, stocking up on gold reserves as they watch the value of the dollar plummet.

36,344 Tonnes of Gold Stockpiled

According to the World Gold Council, global central banks bought 1,082 tonnes of gold in 2022, 1,037 tonnes in 2023, and a record 1,180 tonnes in 2024. As of May 2025, their gold holdings reached 36,344 tonnes, valued at approximately $4.5 trillion. This adds up to more than their $3.5 trillion in U.S. Treasury holdings. Gold accounts for 20% of global reserves now, compared to the dollar’s 46% and the euro’s 16%.

Several factors drive this shift. First, gold is a hedge against inflation and currency devaluation, especially as the Federal Reserve’s monetary expansion has weakened the dollar’s purchasing power. We need not mention the endless wars financed by the U.S. taxpayer, and the fake NGOs bleeding money into politicians’ hands.

Geopolitical risks, including sanctions like those imposed on Russia in 2022, have made gold a "sanctions-proof" asset, immune to freezing or seizure.

Countries like China have reduced their U.S. Treasury holdings from $1.3 trillion to $780 billion, while boosting their gold reserves to 4.9%.

India’s Central Bank just increased its gold reserves to 880 tonnes, and it will continue to prioritize gold.

The U.S. dollar’s share of global reserves has declined from 71% in 1999 to 58.4% in 2023, reflecting a potential move toward a totally different currency system.

20+ year Treasuries, as represented by $TLT, have dropped 37%.

Is The Flight to Gold Planned?

Some suggest central banks are strategically diversifying to reduce reliance on the dollar and to straddle risks implied by U.S. fiscal irresponsibility. Others suggest we’re going to a ledger-based system. It’s clear that we’re headed toward de-dollarization, in whatever case.

Though a complete dollar collapse is unlikely, even a modest de-dollarization could lead to a dollar glut, increasing domestic inflation and weakening the U.S. economy.

The dollar’s reserve status has historically allowed the U.S. to finance massive deficits, several world wars, a global military industrial complex, and more, but as the demand for dollar-denominated assets wanes, the risks of higher interest rates and economic instability grow.

The bedrock of global reserves for decades – the U.S. dollar – is being replaced with a non-sovereign, non-yielding asset. The American Empire is cracking. Is it planned, or was it inevitable?

As some people have advised, Trump’s government won’t suddenly revalue gold at higher rates. The tariffs are potentially meant to force LBMA paper gold price suppression to break, then the free market will “revalue physical gold.”

But this is risky. Every country that dumps US securities and buys up more Gold puts the American economy at risk, but everyone is looking to a more stable alternative, and why wouldn’t they? The U.S. debt is out of control.