Gold prices are up on Friday morning. The price of gold is trading at $2571.25, up $6.40. The price of silver is trading at $30.69, up 24 cents.
Judy Shelton’s book “Good as Gold: How to Unleash the Power of Sound Money” advocates for a return to a gold standard to restore stability to the U.S. dollar and monetary system. She criticizes the Federal Reserve’s wide discretion in monetary policy, which leads to unpredictable decisions and rapid interest rate changes that disrupt markets. Shelton argues that the current system has led to a significant decline in the dollar’s value over time, distorting price calculations and favoring those with investment savvy over savers.
To address these issues, Shelton proposes reconnecting the dollar to gold by issuing federal treasury bonds with gold-redeemability clauses. She suggests that this approach could provide a more stable monetary regime, reduce currency manipulation, and potentially allow for longer-dated government debt at lower interest rates. While acknowledging the political challenges of implementing such a system, Shelton contends that it would create a more predictable and prosperous economic environment by limiting the ability of government officials and central bankers to manipulate the currency for short-term gains.
