A PREDICTION FOR THE INTRODUCTION AND IMPLEMENTATION OF A NEW FINANCIAL SYSTEM FOR THE UNITED STATES OF AMERICA

This presentation describes a possible new financial system for the United States that aims to solve the many problems inherent in the present financial system. It "clicks" one level down into implementation details, explaining at a very high level how the new system would work. The actual implementation of such a system would require details that are extremely complex and would fill volumes and are far beyond the scope of this cursory presentation.

1. PREDICTION FOR THE INTRODUCTION
AND IMPLEMENTATION OF A NEW
FINANCIAL SYSTEM FOR THE UNITED
STATES OF AMERICA
AUTHORED BY NAKASATO SHIMOTO
MAY 10, 2025

2. OUTLINE
•Background and Motivation for a New Financial System
•Prediction of a Possible New Financial System
•Explaining the Prediction by Connecting the Dots
•Clicking One Level Down into Implementation Details
•How to Transition Out of the Old System with Minimal Chaos/Disruption
•Benefits of the New System
•Conclusion

3. BACKGROUND AND MOTIVATION FOR
A NEW FINANCIAL SYSTEM
•Our current financial system where debt-based fiat money is created
out of thin air with interest attached has an inherently limited lifetime
•Over the long term, the money supply will increase faster than the
real economy because the real economy is based on finite resources
that cannot be instantly created out of thin air

4. PROBLEM: MONEY SUPPLY IS GROWING FASTER
THAN GDP

5. MONEY SUPPLY HAS GONE PARABOLIC
Inflation by definition is an increase in the money supply

6. THE VALUE OF THE DOLLAR IS
DECREASING OVER THE LONG TERM
•This is a direct result of the supply of
money increasing faster than the real
economy over the long term

7. CENTRAL BANKING IS INHERENTLY
PROBLEMATIC
•Central banks have a monopoly on the creation of money in their respective countries and monopolies
never favor the consumer
•Central banks have shown no discipline to put an upper limit on how much money they create
•Central banks tend to become political as seen during the 2007/2008 financial crisis where the Federal
Reserve picked winners and losers
•Central banks can cause boom and bust cycles which invite corruption in the form of profiting from
insider information
•Since the commercial and investment banks can borrow directly from the central bank, they have access to
newly created money first and can invest or spend it before the debasement of the currency is realized

8. WHY IS A NEW FINANCIAL SYSTEM
NEEDED NOW?
•The U.S. is rapidly approaching the point where even the interest on the national debt cannot be serviced
•The market’s appetite to purchase newly issued debt is weakening
•The fallout from the turmoil in bonds could be a more severe shock to the monetary system than the
2008 financial crisis and there is concern that the global monetary system will break down
•Trillions of dollars worth of derivatives in the system are a ticking time bomb that Warren Buffet has
referred to as “financial weapons of mass destruction”
•The current monetary system - the Global Dollar Standard - has existed since 1971 and monetary
systems historically have a 30 - 50 year lifespan

9. Gold
PREDICTION OF A POSSIBLE NEW
FINANCIAL SYSTEM
•Essentially, the foundation of the new
system would be gold-backed
cryptocurrency on the blockchain
+ Cryptocurrency

10. EXPLAINING THE PREDICTION BY
CONNECTING THE DOTS
•Why do we predict a gold-backed cryptocurrency?
• Why is it likely?
•Who has the power to reshape the financial system?
• What they are likely to do based on their words and actions?

11. TRUMP CONSTANTLY REFERS TO GOLD
•Trump keeps repeating the phrase, “The ‘golden’ age of America…”
•Keeps highlighting the period of 1870 - 1910 where the US was on a
gold standard
•Wants to audit the gold in Fort Knox
•Introduced the “Gold Card” for foreigners to buy citizenship

12. TRUMP QUOTES ON GOLD

13. CENTRAL BANKS HAVE BEEN
ACCUMULATING GOLD
Indicates gold as becoming increasingly important

14. NEW BANKING RULES IN THE U.S.
•Basel III is an international set of banking regulations designed to strengthen the global
financial system by improving bank regulation, supervision, and risk management
•Basel III will be implemented in the U.S. on July 1, 2025
•Under Basel III, physical, allocated gold is reclassified as a Tier 1 asset, similar to cash,
meaning banks can hold it without needing to hold extra capital reserves

15. TRUMP AND TEAM ARE HIGHLIGHTING
CRYPTOCURRENCIES
•Trump has announced a crypto stockpile for the U.S.
•A crypto czar (David Sacks) has been appointed
•An SEC chairman (Paul Atkins) who is crypto-friendly has been
appointed
•A Secretary of Treasury (Scott Bessent) who is crypto-friendly (and
gold-friendly) has been appointed

16. WHITE HOUSE STATEMENT ON CRYPTO

17. NOTABLE QUOTES ON
CRYPTOCURRENCY
•“I want crypto. I think crypto’s important because if we don’t do it, China’s going
to.” - U.S. President Donald Trump
•“We are going to keep the U.S. the dominant currency in the world and we will
use stablecoins to do that.” -U.S. Treasury Secretary Scott Bessent
•“I can see in the next few years that we are going to have to have some kind of a
grand global economic reordering. Something on the equivalent of a new Bretton
Woods…There’s a very good chance that we are going to have to have that over
the next four years.” -U.S. Treasury Secretary Scott Bessent

18. CLICKING ONE LEVEL DOWN INTO
IMPLEMENTATION DETAILS
•For simplicity, assume M3 money supply = $20 trillion
•For simplicity, ignore U.S. debt
•The United States Treasury will create 2 trillion Digital Treasury Dollars (DTD)
•The United States Treasury will use 200 million ounces of gold to back the entire
supply of new DTD
•Every individual DTD will be backed by one ten thousandth (1/10,000) of an ounce of
gold

19. TRANSITION OUT OF THE OLD SYSTEM
•Every existing Federal Reserve Note (FRN) could initially be traded for DTD at a rate
of 10 FRNs per DTD
•Note: This implies a revaluation of gold to $100,000 in FRN per ounce
•After some initial time period, the free market would set the exchange rate
•DTD could be exchanged for gold on demand
•Note: In practice, would need a minimum of 1000 DTD to receive 1/10th ounce
physical gold

20. TRANSITION OUT OF THE OLD SYSTEM
(CON’T)
•Banks would be allowed to issue their own currency to encourage competition
•In practice, this would likely lead to banks issuing their own stablecoins backed
by DTD (or their own gold holdings) or using a FinTech stablecoin (e.g. USDT,
USDC, RLUSD, etc.)
•Every individual would decide which currency or currencies they want to hold
•Individuals could hold their savings in DTD, FRN, stablecoins or physical gold

21. BENEFITS OF THE NEW SYSTEM
•Blends the best of the new with the best of the old because it leverages the innovation, convenience, efficiency
and security of Blockchain and combines it with the foundation of a financial asset that has stood the test of
time for 5000 years
•Most of the world has a cultural, historic and innate trust/affinity with gold
•However, nobody really wants to walk around with gold in their pockets/wallets/purses to pay for things
•The new system will take advantage of modern payment technology and be as simple and as fast as credit/debit
cards or PayPal/Venmo type payments
•Competing currencies by private (i.e. non-government) companies is beneficial to the market and helps ensure
freedom from government overreach/tyranny
•Backing the new digital, Blockchain-based currency with gold limits the ability of the government to grossly
inflate the money supply which will keep prices much more stable over time

22. SUMMARY AND CONCLUSION
•We will be introduced to a new financial system soon
•The old system will remain in place while the new system is introduced in parallel
•The new system will be based on a gold-backed cryptocurrency issued by the US Treasury
•Private banks will also be permitted to create and issue their own currencies
•The public will have the choice of which system and currency to use
•Government and private institutions will compete with each other for public adoption
•Payments will be fast, convenient and secure and based on a proven foundation of trust
•Prices will be more stable over time due to the discipline of a currency tied to a physical asset

23. –U.S. Treasury Secretary Scott Bessent
“Gold has always been a store of value. Gold has history going for it. Gold
can’t run a deficit. It can’t default. It can’t go to war. It’s isolated from
government failure. That’s why people trust it.”

24. –President Trump
“I am very positive and open minded to cryptocurrency companies, and all
things related to this new and burgeoning industry. Our country must be
the leader in the field.”

25. THANK YOU
•Disclaimer: This presentation does not constitute financial advice in
any way. It simply reflects one man’s opinion. Before making any
financial investment, always consult a financial professional, even
though they are usually wrong.