The U.S. national debt has surged to $40 trillion, with annual growth accelerating to 8.6% since the pandemic. Morris argues that this trajectory, combined with Treasury interventions, creates a reflationary environment that forces capital into gold. While the Treasury aims to suppress borrowing costs through bond buybacks, the limited supply of long-dated debt makes this a difficult cycle to sustain. As central banks navigate an era of global instability and trade imbalances, gold remains the most liquid store of value.

Morris highlights that the total value of above-ground gold currently sits at $31 trillion, representing roughly 77% of U.S. debt. Historically, this ratio has exceeded 100% during periods of financial crisis. Furthermore, gold holdings remain undervalued relative to U.S. equities, which are currently trading at four times the value of global gold reserves. With China and other central banks increasingly diversifying away from Treasuries, Morris suggests that gold’s role as a structural necessity will only intensify as debt-to-GDP ratios continue to diverge.