After global ministers of finance and central bankers met for the World Bank/IMF Spring Meetings in Washington at the end of April, the buzz is the future of the international monetary system anchored on the dollar. US Treasury Secretary Scott Bessent’s address to the Spring Meetings reaffirmed that “the purpose of the IMF and the World Bank was to better align national interests with international order, thereby bringing stability to an unstable world. In short, their purpose was to restore and preserve balance. This remains the purpose of the Bretton Woods institutions. Yet everywhere we look across the international economic system today, we see imbalance.” Bessent complained how the US “face(s) the stark reality of large and persistent U.S. deficits as a result of an unfair trading system.

Intentional policy choices by other countries have hollowed out America’s manufacturing sector and undermined our critical supply chains, putting our national and economic security at risk. The persistent over-reliance on the United States for demand is resulting in an ever more unbalanced global economy.” As the former George Soros fund manager and now Treasury Secretary put it, “We’re going to monetize the asset side of the U.S. balance sheet for the American people”. These may include creating a sovereign wealth fund, using digital assets, allowing oil shale assets to be exploited and perhaps even revaluing gold reserves. What does the US balance sheet look like?

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According to the Federal Reserve Board’s flow of funds and national balance sheet accounts, US households’ net worth was $169.4 trillion at end 2024, with Federal government net liability of $24.6 trillion and net liability to foreigners of $24.7 trillion. In........

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