{"id":1501230,"date":"2024-11-08T17:50:00","date_gmt":"2024-11-08T22:50:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1501230"},"modified":"2024-11-08T17:50:00","modified_gmt":"2024-11-08T22:50:00","slug":"judy-shelton-returns-with-a-bold-plan-to-restore-gold","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/judy-shelton-returns-with-a-bold-plan-to-restore-gold\/1501230\/","title":{"rendered":"Judy Shelton Returns With A Bold Plan To Restore Gold"},"content":{"rendered":"

Judy Shelton Returns With A Bold Plan To Restore Gold<\/span><\/p>\n

\n

Via SchiffGold.com,<\/em><\/a><\/p>\n

2024 has demonstrated why\u00a0gold is worth investing in, especially for foreign central banks,<\/a>\u00a0who\u00a0seek to shore up the weaknesses of their fiat currency by buying gold.<\/a>\u00a0<\/p>\n

In her newest work, former Trump administration advisor Judy Shelton argues that a return to sound money requires going back to gold.<\/strong><\/p>\n

<\/a><\/p>\n

The\u00a0following article\u00a0<\/a>was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.<\/em><\/p>\n

Gold is on the rise, and so is the typical\u00a0gold-standard nostalgia<\/a>\u00a0that has erupted every time\u00a0price inflation<\/a>,\u00a0banking crises<\/a>, and\/or\u00a0debt concerns<\/a>\u00a0have reappeared after the fall of the Bretton Woods\u00a0gold-exchange standard<\/a>\u00a0in 1971.<\/strong> Certainly, the precious metal\u2019s ascent, as usual, is signaling that all is not well.<\/p>\n

Earlier this year, the precious metal soared\u00a0past $2500 an ounce<\/a>\u00a0to all-time price highs, making it one of the best-performing assets of 2024, following a price gain of\u00a013 percent<\/a>\u00a0in 2023\u2014the result of persistent economic as well as geopolitical uncertainties. More interestingly, perhaps, the\u00a0World Gold Council<\/a>\u00a0reports that central banks have been the precious metal\u2019s most aggressive buyers, purchasing 1,037 tons of gold in 2023 alone\u2014the second highest annual purchase in history\u2014following the record high of 1,082 tons in 2022. Indeed, a Gold Council survey revealed that 29 percent of central banks respondents planned on increasing their gold reserves in the coming year\u2014the highest percentage since the World Gold Council\u00a0began this survey<\/a>\u00a0in 2018.<\/p>\n

A recent\u00a0piece<\/a>\u00a0in\u00a0The Times<\/em>\u00a0(of London) sums up the moment:<\/p>\n

Gold, it seems, just can\u2019t be ignored any more. The prospect of falling US interest rates, a decline in the dollar and worries about America\u2019s debt sustainability should lead to more institutional and retail money flocking into gold\u2026 There is even talk that the long-mooted new currency set up by the expanded Brics countries will be backed by a number of assets, including gold. A century on from the demise of the [Classical] Gold Standard, which collapsed in the interwar years amid a breakdown in central bank cooperation over how to manage the metal, gold is quietly becoming a more important feature of our financial system rather than an outmoded 20th-century relic.<\/em><\/p>\n

All of which has led to much talk about sound money, cryptocurrencies, and even the feasibility of\u00a0a new gold standard<\/a>, as is attested by the latest title from former Trump administration economic adviser and longtime sound money advocate Judy Shelton\u2014Good as Gold: How to Unleash the Power of Sound Money<\/em><\/a>\u2014currently a best-seller on Amazon.<\/p>\n

Shelton, speaking on the phone from Paris, on her way back from a recent New Delhi gathering of the Mont Pelerin Society\u2014the free-market economics conference founded by Friedrich Hayek and Milton Friedman\u2014remains surprisingly upbeat about the precious metal\u2019s monetary prospects despite the myriad of setbacks over the past fifty years.<\/p>\n

\u201cWe\u00a0have\u00a0the gold,\u201d<\/strong><\/em> she says, pointing to the US government\u2019s reported holdings of 261.5 million ounces\u2014more than any other nation. \u201cWhy not utilize it?\u201d<\/strong><\/em><\/p>\n

An inveterate\u00a0sound money champion<\/a>, Shelton argues that the present moment is especially propitious, especially on the international level.<\/p>\n

The fact that gold-buying by central banks has reached a near-frenzy \u201ctestifies to good prospects for the serious consideration of a new proposal,\u201d she says.<\/strong><\/p>\n

And she has one, of course: a well-articulated plan to reaffirm gold convertibility for the average American for the first time since the days of the\u00a0Classical Gold Standard<\/a>\u00a0(1815-1914); albeit beginning exclusively through the ownership of gold-linked US Treasury bonds. To Shelton, the right of dollar-to-gold convertibility\u2014her end goal for the entire US monetary system\u2014is essential: it wouldn\u2019t just signify fiscal and monetary rectitude; it \u201cprovides the ultimate simple rule for regulating the money supply in accordance with individual rights and free-market principles,\u201d one of the book\u2019s key arguments.<\/p>\n

Her proposal calls for a new issuance of Treasury zero-coupon securities\u2014dubbed Treasury Trust Bonds\u2014offering lower interest rates than conventional Treasuries (thus reducing current deficits), but with the distinguishing feature that they can be redeemed at maturity either at their face value in dollars\u00a0or<\/em>\u00a0at a pre-specified equivalent in gold\u2014at the buyer\u2019s discretion.<\/p>\n

In other words, should monetary policy continue on its current off-the-rails path, and the purchasing power of the dollar decline significantly, it could result in a significant loss of US government gold. If not, and the United States straightens out its finances, most of the bonds would be likely redeemed in dollars. In essence, they would offer a \u201ctrust-but-verify provision,\u201d as Shelton calls it, staking the nation\u2019s gold holdings on a new resolve to demonstrate fiscal and monetary rectitude. \u201cAll that officials would need to do to make the issuance a success is to surpass expectations,\u201d she explains. If they do, the bonds will have led the way \u201cfor the United States to issue a dollar-denominated financial instrument that is, literally, as good as gold.\u201d<\/p>\n

Acknowledging that her proposal appears modest in comparison with the \u201cimpressive\u00a0gold-standard proposal<\/a>\u201d that came out of the US Gold Commission during the Reagan years, Shelton argues that by successfully establishing this type of \u201cbeachhead for sound money\u201d and \u201cbulwark for fiscal and monetary integrity,\u201d substantial monetary reform here and abroad would likely follow, perhaps even resulting in a new, gold-based international monetary system.<\/strong><\/p>\n

In that case, the power of the Federal Reserve would have to be substantially curtailed, of course. Describing her economic views as \u201ccloser to the Austrian School\u2019s than others,\u201d despite her long-time association with supply-side advocates and theory, Shelton agrees with Austrians that the fatal flaw in Bretton Woods (1945-1971) as well as myriad other rule-based proposals is that they ultimately rely on the \u201cdiscretionary inclinations of technocrat authorities.\u201d Indeed, she acknowledges that the classical gold standard of the late nineteenth century was \u201cmuch better\u201d than the watered-down, gold-exchange standard of Bretton Woods (in which individuals were denied direct convertibility) as a result of the fact that \u201cit gave individuals, not the government, the power to control the money supply.\u201d<\/p>\n

Moreover, the new book makes it clear that 1) central planning doesn\u2019t and has never worked, whether in the old Soviet Union or modern central banking policy; and, therefore, that 2) the Federal Reserve\u2019s \u201cdisplacement of free-market outcomes may one day breed the same sort of cynicism that caused the Soviet approach to collapse.\u201d<\/strong><\/p>\n

The bottom line for Shelton is that \u201cthe highest level of performance to which a central bank could aspire would be to match the economic interactions and results that would likely occur under a gold standard,\u201d an argument her book makes by surveying the results of previous monetary systems. Alternatively, she adds, alluding to Hayek\u2019s\u00a0best-known book<\/a>, \u201csubstituting the perspicacity of designated monetary authorities for the shared acumen of hundreds of millions of people carrying out voluntary transactions to facilitate their daily needs and future dreams is akin to selecting the path to serfdom.\u201d<\/p>\n

In short, while Shelton\u2019s new plan may represent yet another\u00a0less-than-ideal monetary reform<\/a>, it would certainly mark a positive step in the unambiguous direction of sound money; and possibly with some real teeth, as she outlines in\u00a0Good as Gold<\/em>. Perhaps it will even generate grassroots enthusiasm for real monetary freedom, the reason she hopes the bonds are inaugurated in 2026, the 250th anniversary of the Declaration of Independence.<\/strong><\/p>\n

Indeed, the new book presents such a robust and articulate defense of free-market capitalism in the context of American history and its founding principles, that it makes one wonder whether the prospects for sound policy are better today because Judy Shelton was blocked from joining the Federal Reserve in 2020 and instead continues, unabashedly, to expound her sound-money message.<\/p>\n

With the new book, Shelton has doubled-down on everything that got her labeled as a member of the\u00a0\u201ccrank right-wing fringe\u201d and denizen of the \u201cgold-bug circuit\u201d<\/a>\u00a0by mainstream writers and analysts in 2020. And her Treasury Trust Bond plan\u2014and greater vision for sound money\u2014will have succeeded, she says, if it leads the nation toward a future in which \u201cpayment in future dollars is deemed literally as good as gold.\u201d<\/p>\n

\u201cThat,\u201d she says, \u201cwould be historic.\u201d It certainly would be.<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 11\/08\/2024 – 12:50<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/precious-metals\/judy-shelton-returns-bold-plan-restore-gold<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Judy Shelton Returns With A Bold Plan To Restore Gold Via SchiffGold.com, 2024 has demonstrated why\u00a0gold is worth investing in, especially for foreign central banks,\u00a0who\u00a0seek…<\/p>\n","protected":false},"author":0,"featured_media":1501231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1501230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6ixo","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2024\/11\/judy-shelton_0-LXx9q8.jpeg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1501230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1501230"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1501230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1501231"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1501230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1501230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1501230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}