Judy Shelton’s proposal for issuing gold-backed Treasury bonds aims to reintroduce sound money into the economy, challenging the Federal Reserve’s power to print money endlessly. This approach offers a potential solution for restoring trust in the financial system while preserving the current monetary framework. By linking the dollar to gold, Shelton hopes to create a mechanism for determining an appropriate gold price, without the need to abolish the Federal Reserve or overhaul the entire system.
Proposal for a 50-year Treasury bond convertible into gold issued at the initiative of President Trump on July 4, 2026. pic.twitter.com/vXVy0SnIq6
— Judy Shelton (@judyshel) November 22, 2024
— GoldSilver HQ (@GoldSilverHQ) December 8, 2024
Gold-convertible Treasury bonds could also help leverage the U.S. government’s substantial gold reserves, which are undervalued. With gold redeemability, the government could issue long-dated debt at lower interest rates, mitigating concerns about future dollar devaluation. Shelton views this as a way to restore currency as a standardized measure for public use, not a tool for economic manipulation.
However, this proposal comes at a time when bullion banks are significantly short on gold. Their current short positions, about eight times more than their long positions, are believed to suppress gold prices—along with silver, which tends to follow gold’s price movements. This manipulation is occurring as inflation erodes Americans’ purchasing power. The U.S. inflation rate, at 2.6% for the year ending in October 2024, continues to strain household budgets, despite efforts to curb it.
Many see the suppression of gold prices as a serious problem, especially amid rising inflation. The unallocated-to-allocated gold ratio in markets like the London Bullion Market Association could range from 20:1 to 100:1, indicating a fractional-reserve system where claims on gold vastly outnumber the actual metal available. This imbalance threatens the gold market’s stability and underscores the need for greater transparency.
Shelton’s gold-convertible Treasury bond proposal represents a bold move toward sound money and controlling inflation. While challenges like bullion bank manipulation and inflationary pressures remain, the idea of a gold-backed currency offers a potential path to restore stability and trust in the financial system. As the July 4, 2026 deadline approaches, all eyes will be on whether this proposal can usher in a new Golden Age.
The bullion banks are about 8x short to gold as they are long.
This is designed to suppress price of gold (and thereby silver which follows gold price direction).
During a time which American's purchasing power is being destroyed by inflation.
This is criminal. 😡 pic.twitter.com/bgLAhLndHS
— Rob Kientz | The Freedom Report (@freedom_rpt) December 17, 2024
The 1930s Depression wasn’t a failure of the free market – it was a failure of the Federal Reserve.
Their policies caused the crash, and the system remains broken today. pic.twitter.com/E0a8AuBIvx
— GoldSilver HQ (@GoldSilverHQ) December 17, 2024
Sources:
https://mises.org/mises-wire/gold-back-and-so-judy-shelton
https://goldseek.com/article/gold-price-likely-suppressed-concentrated-shorting-could-explode
https://www.usinflationcalculator.com/inflation/current-inflation-rates/