Judy Shelton on the Future of the Dollar, Gold, and a 'Dependable' US Currency

Vision for the US Economy

• 💡 The economy is poised for a transformation from government-managed to private sector-driven initiative, which is seen as healthier and more productive.
• 🎯 This shift is aligned with the vision of President Trump to foster genuine prosperity.

Confidence in the US Dollar

• 🧠 As a monetary economist, Judy Shelton expresses skepticism about doubts concerning the future of the dollar and its role as the world's dominant reserve currency.
• 🚀 She believes the US dollar has a strong future and that efforts should be redoubled to restore sound finances and sound money.
• ⚠️ The realization that the Federal Reserve is not infallible may explain some movement into gold and other currencies.

The Importance of a 'Dependable' Dollar

• 💬 While trade negotiations are important, foreign exchange movements can have a more immediate impact, as noted by former Federal Reserve Chairman Paul Volcker.
• 🔑 The focus should be on a 'dependable' dollar, not necessarily a strong or weak one, as there is no substitute for the US dollar as the world's reserve currency.
• 📈 Shelton expects the dollar to strengthen in the future.

Gold's Role and US Reserves

• 📊 There is not a clear-cut, either-or relationship between gold and the dollar currently.
• 💰 It is beneficial for the US to see the gold price rise, as the US is the world's largest holder of official gold reserves.
• 📈 The US Treasury holds 261 million ounces of gold, currently valued at a book value of $42 per ounce, representing a potential windfall gain approaching a trillion dollars as gold prices increase.

Proposal for a Gold Convertible Security

• 🗓️ Shelton proposes that the US Treasury issue a 50-year gold convertible Treasury security on July 4th, 2026, the 250th anniversary of the Declaration of Independence.
• 🔒 This security could be exchanged for a fixed amount of gold at maturity and would serve as collateral, preventing future administrations from selling off gold reserves.