Fresh Take: Judy Shelton's Gold-Backed Dollar Plan for a Steadfast Economy
A former economic advisor to Trump advocates for a revaluation of the US dollar, arguing for a shift towards gold as a base currency.
Economist and former advisor to President Donald Trump, Judy Shelton, presents an audacious idea to safeguard the U.S. dollar and capitalize on the climbing gold prices. Her brainchild? Issuing long-term Treasury bonds that are exchangeable for gold upon maturity. Here's a lowdown of her plan:
Key Component
- Gold-Secured Bonds: Shelton dreams up long-term Treasury bonds that can be converted into golden goodies at maturity. This idea borrows from the 1981 musings of Alan Greenspan, who believed anchoring debt obligations to a tangible asset like gold promotes disciplined spending.
Benefits
- Investor Delight: At maturity, investors can choose between cashing in or converting their bonds into real-life gold bars or cold, hard cash. This option caters to gilded-glove investors seeking an asset mimicking currency integrity.
- Long-Term Stability: The 50-year timeframe aims for policy and monetary stability in lockstep, guaranteeing a solid financial future for the almighty dollar.
Aim
- Fiscal Responsibility: By connecting debt obligations with gold, Shelton aims to instill austerity among lawmakers, signaling a commitment to the dollar's enduring reputation, taking advantage of gold's historical surge since the U.S. ditched the gold standard in 1971.
Hurdles
- Technical Obstacles: Divvying up large gold bars into smaller denominations and making sure pricing remains fair over four decades poses challenges. Critics wonder if the Treasury could dodge market manipulation or ensure consistent gold supply.
Scheduled Launch
- Shelton eyes initiating this venture on July 4, 2026, marking the 250th anniversary of the Declaration of Independence.[1]
This scheme is part of an expansive crusade to reinvigorate trust in the U.S. dollar as a global crown jewel and champion fiscal restraint under President Trump's financial agenda.[1][5]
- Judy Shelton's plan for the U.S. dollar's stability includes the issue of long-term Treasury bonds, which can be exchanged for gold upon maturity, a concept similar to Alan Greenspan's 1981 proposal.
- The gold-secured bonds, a key component of Shelton's plan, aim to instill fiscal responsibility and long-term stability in the economy, as well as cater to investors seeking assets mimicking currency integrity.
- Critics question the technical feasibility of Shelton's plan, as challenges arise in dividing large gold bars into smaller denominations, maintaining fair pricing over four decades, and avoiding market manipulation or ensuring a consistent gold supply.
