The Real Reason The Rich Get Richer & Everyone Else Poorer (Uncut) 02-25-2025

I would rather see the FED eliminate paying interest on reserves and that’s what an audit I definitely would audit the fed that’s what an audit would reveal I’d like to know how much of that half trillion has gone to the top five largest US Banks I’d like to know how much of that half trillion has gone to foreign owned Banks because they also benefit from this this is Kaiser Johnson with liberty and finance and these are the Franklin weekly specials for February 17th through February 24th 2025 while supplies last right now you can

swap any uncirculated 1 o gold coin or 1 oz carded bar for an ms62 $20 Liberty with no extra premium whatsoever just ship us your gold coins or bars and exchange them for pre-33 gold ms62 $20 Liberties at no extra cost call us for details welcome back to Liberty and finance we are privileged to have a firsttime distinguished guest today Dr Judy Shelton is a monetary Economist she’s Trump’s former lead economic adviser of international Affairs for Treasury and she was Trump’s former candidate to the

FED she’s the author of The Coming Soviet crash which was a pressian book written in 1989 money meltdown in 1994 and now good as gold in 2024 she’s also a senior fellow at the independent Institute Dr Judy Shelton thank you for joining us this first time on Liberty and finance my my pleasure and thank you for such a kind introduction we are delighted to have you here uh it was with great uh honor and privilege that we were able to get you on our schedule our viewers and subscribers have been hearing about you

you cast along long Shadow and they’ve been looking forward to this visit that I promised them for the last couple of weeks so so we’re delighted to finally make this connection and you uh well I would just say go ahead you’re almost a folk hero um together with like Paul V vulker and Ron Paul and some others who have been uh fairly outspoken advocates for simple truth and uh return where possible to constitutional soundness to our money supply and honesty to our um our monetary world and uh you you look at

that not only from an individual standpoint you look at it from a constitutional standpoint you look at it from a historical standpoint you look at it from an international standpoint and you’ve you’ve uh laid out proposals or at least Frameworks of proposals that could benefit not only ordinary people the United States in general uh even other trading partners in the world just kind of one of these everybody wins except for those who have who have lived off of uh basically graft and uh and misdirection and and lies about our

about our money to Ordinary People and we want to get into some of that today in fact we’ll just plunge right in the first topic we’d like to talk about is inflation versus honest money and you have been accused in in written uh articles uh by others as being a radical who proposes a radical proposal about honest money you they say the fed’s goal of stable inflation is an oxymoron you you have said and you say that honest money is a moral contract and we want to talk with you about why you say that

honest money is a moral contract with the people and why stable inflation is an oxymoron well I’m very honored and grateful for the way you you um framed up My Views um I I think accurately if I may say so I do think honest money is um not only required by our constitution but it’s really a moral imperative and um for me it’s it’s there there are many biblical references to the importance of honest weights and measures and and I think it goes to the idea that really what what makes us human is that we we engage in Commerce

with with voluntary transactions with other humans and that that has been um a great boom to our species and we’ve achieved increasing levels of prosperity because we have voluntary trade and having a trustworthy unit of account that provides that Medium of exchange for carrying out those transactions is really vital and and um in Deuteronomy in um Proverbs in Ezekiel and in um it numerous books in the Bible there are references to to not having differing weights in your bag the idea going all the way back to when people would would

trade by by having a a a balance that that went to the market with them and they would put on one side a weight which represented their money’s worth and then the good they were purchasing on the other side but if you had a heavyweight when you were buying it was to get more than the price it was to cheat the person selling to you and if you use the lightweight when you were selling again it was to deceive the purchaser to give them less than the agreed price and that is something that’s referred to as an

Abomination and um that’s why I feel that honest money um is is what citizens especially in a self self-governing country based on that American idea people such as our ourselves as as American citizen have the right to demand that from government and when the Federal Reserve deliberately targets not stable prices as their mandate says literally but rather stable inflation it becomes then a deliberate policy on the part of our government which has entrusted this function of of securing the the monetary Integrity of

the US Dollars our legal tender it sets up the Federal Reserve to deliberately debase purchasing power that is if the FED hits its 2% inflation Target and Pats itself on the back something it hasn’t done or going on four years it has not hit 2% but if it did it would congratulate itself now think over over 10 years at 2% annual inflation the purchasing power of money you have earned or saved has has lost 20% I consider that expropriation of your purchasing power because in addition to serving as a

medium of exchange and a unit of account that that Fosters Trust on both sides of any transaction money is supposed to serve as a store of value and for a lot lot of people saving money over 10 or 20 years or putting it into a house and then having the value of the house renominated in diminished dollars is highly unfair and and fundamentally dishonest yeah you um one of the things you said echoed from the biblical prescription against uh depriving The Working Man of his wages essentially uh is one of those things in addition to

the weights and measures which are intimately connected it says it cries out to heaven for vengeance and we interviewed uh Wayne jet the author of uh fruits of graft great depressions then and now talking about how intentional policies to First steal from the working people their earnings their savings and their retirements but secondly to lie to them about it is like you know you’re hurting them you’re hurting them twice adding adding insult to injury uh and you talked about how this has actually come up for discussion

uh this this changing sub subtly and and uh uh not overtly changing the definition of one of the charters of the Federal Reserve which is supposed to be St maintaining of stable prices how they how that morphed into uh maintaining quote unquote stable inflation of course then they get to cook the books and change the definition of inflation measures but uh it just reminds me of that pop song from a few decades ago tell me tell me lies tell me Sweet Little Lies uh which unfortunately ends up being you know stealing from the

working class can can you explain to people how that ended up being not just a policy but a deceptive policy one that can’t be talked about openly why the choir part isn’t said out loud well I commend you for remembering the lyrics to a pop song and it’s very appropo um I I’m someone who actually goes back and reads the transcripts of the Federal Reserve U mon monetary policy committee and um if you go to 1996 July this was a time when Alan Greenspan was the chairman um Janet Yellen was a governor and uh there was a discussion

around the table of of what is the meaning of the stable prices mandate and Greenspan said in his view it meant Zero inflation that could be the only Target and in fact if you look at that legislation it was from 1978 it calls for trying to reach zero inflation by 1987 so it definitely saw that as a final objective at a time when inflation was running higher um it’s interesting to read the discussion because after greens spent introduced it by saying I think it has to mean we target zero inflation Janet

Yellen was called on she differed she said I think it needs to be a low rate but nevertheless a positive rate of 2 to 3% inflation and in explaining her view she Drew on Keynesian Theory and and particularly a it’s called the the squeaky wheel approach greasing greasing the wheel and um or sometimes referred to as money illusion but it’s the idea that people would not realize if they were essentially deceived on their wages if if they received a higher nominal wage let’s say an increase but relative to inflation they

were losing purchasing power but still psychologically they could accept that and Shay put forward the idea that if you had inflation of 2% % and you gave someone a 1% raise they would be happy getting a 1% raise and somehow oblivious to the fact that they were now 1% docked in terms of their actual earnings that reflected their purchasing power because inflation was higher than the amount of the raise and and to shore up this argument she cited a survey of workers this had been done by her husband who was a very preeminent

Economist he still is George akerlof and the survey asked workers would you be happy to get a 2% raise even if inflation was 2% and just over 50% of the workers said yes which they took to mean so they would count it as a gain even though it really wasn’t but then she added in that they gave the same survey to economists and the way she phrased it and this is captured in the transcript she said you’ll be pleased to know that when we put the same survey to economists and said would you be gratified if you got a

2% raise but inflation was 2% the majority said no they would not and the transcript records laughter around the table and and I saw that as an example of of hubris thinking we the economists are so much smarter than the average employee someone who works for their their wages but I also thought it was just plain faults we’ve certainly seen that unions are more than happy to bargain for much higher future wages to compensate for what they expect to be higher future inflation so this was discussed around the table and the next

day um chair Greenspan and and the vice chair said I don’t think we should publicly say that we’re going to Target 2% or 3% inflation because Congress might fault us for doing that and I think on the same logic that maybe you and I are saying because it seems like a deliberate deception and it was even suggested by McDonald the vice chair that this is something that really should be decided by the American people maybe even subjected to a vote that should your Central Bank the Federal Reserve um deliberately Target a decline

of 2% in the purchasing power of the dollar as a matter of policy and then they decided not to put that to an American vote not to put it to Congress but they did not publicly say they had an inflation Target until I believe it was 2012 under the new chair Ben Bernan there’s there’s this Cascade of lies in my view that that happened there I guess it’s it’s that’s what happens with lies you got to cover up that with another lie and cover up that with another lie so if the first lie is rather than honest money that’s

guaranteed by the the Constitution and the coinage act of 1792 and all that you go with this no we’re just going to make it up as we go and then there’s the second lie is well we’re going to rather than calling it theft we’re going to call it a target of inflation or policy come up with some words that make it sound like something that economists have to manage rather than we’re going to take from your earnings and we’re going to take from your savings and then the third thing is we’re going to cook the book so

that we can tell you that the rate of of uh that we’ll tell you it’s like when you go to the doctor and they say no no you don’t know what you’re talking about we’ll tell you how what’s really going on for you it’s like we’re not going to tell you how much pain you’re feeling in your life trying to make ends me we’ll we’ll we’re going to we’re going to give you the answer because we know better than you and so and then we see these charts decade after decade this is when I was a kid I remember these charts say

look the rich are getting richer and the poor are not and the rich are getting richer and the poor are not the top 1% is is getting up and up and then you hear these various things thrown out there oh it’s corporate greed or oh they’re giving too many bonuses or whatever but you nobody that I recall hearing from the from the the top of the food chain there uh at the national level saying look guys the monetary system is built this way we’ve built it we’ve structured it this way to where we’re going to we’re going to debase the

currency that means it’s going to take away from your wages and it’s can take away from your savings so all those who are in the working class who tend to earn in dollars and from wages and then they tend to save in dollars in their rank are going to keep losing purchasing power but the asset owners in the top tier are going to going to see nominal huge nominal increases in their stocks bonds and real estate um and how this leads to this distorted this this absolutely um apparently Unstoppable separation of of financial benefits for

the for those who are asset owners and financial impoverishment theft from those who are workers um any comments on any aspect of that that I just on many I I think those are all very very brilliant points we itely seen this bifurcation among those who who live off their paycheck versus those who live off their portfolios and we have definitely seen a patronizing attitude on the part of government trying to tell people look you you you have it you have it so good you couldn’t be suffering inflation

because look at these numbers from the Bureau of Labor Statistics and I think it does not really capture the the individual experience and I would also note um when inflation targeting first became was first put into use it was this is kind of an interesting just little piece of History it was New Zealand’s Central Bank that came up with this idea and what they said is we need to get inflation down let’s set up a contractural relationship with the head of our Central Bank and they will state what their objective is in bringing down

inflation and if they achieve it they get to keep their job and if they don’t they agree they should be fired and so there were consequences and the New Zealand Bank followed by the Australian Central Bank set up these rules and contractual arrangements with their Central Bank officials and uh if they did not hit their Target and they set it up usually as a range of 0 to 2% 0 to 2% they would be fired nobody got fired at our federal reserve for having the CPI go above 9% in July of 2021 and for being incapable of getting

it down to even their target 2% rate for I think it’s something like 48 months now I might know too since you talked about that bifurcated way that money Works where I think real Financial benefits are channeled to C members of our society at the expense of others um which really violates even the fundamental American idea of being equal under the law um when the dollar did have a link to Gold during the Bretton Woods era so roughly from the mid-40s to the early 70s what we saw was not only economic growth but

we saw a tremendous increase in in productivity so it was productive growth not just increasing financialization of the gross domestic product which is what we have today a lot of the money is just Financial assets inflating but we also saw to your point decreasing wealth inequality we saw broader worker participation but a closing of that Gap as as people were able to work and benefit from stable purchasing power because you did have an international monetary system based on fixed exchange rates and anchored by a

dollar convertible into gold and I think that also helped us workers in in being able to compete against foreign producers of of competitive products because we had a level international monetary playing field whereas with the loss of that international monetary system we opened it up to current C manipulation by our trading partners and I think especially because of transgressions by by China we saw hollowing out of our own productive workers who were not able to compete against not just cheap Goods but goods

made cheaper because of the currency depreciation of other countries who allowed their exchange rate to decline against the US dollar making the imported product products cheaper in our market and making it more difficult for the the goods produced by us workers to compete in global markets you also mentioned along the way this notion that persists at the FED that experts so-called experts know better than the people uh what what the H money should be valued and what and not given the free choice to decide what

money they would want or prefer um and it seems to me two things about this one is that people forever have done fairly well thank you of taking care of their individual uh households and and lives by by know if they if they know if they have informed consent informed of what the true option is like you said with the weights and measures if the weights and measures are true then people make millions and millions of good decisions every day in the best interest of theirselves and their family and that’s

that Miracle of of uh that collective intelligence of everybody doing what’s good for them is good for everybody in the end um so I guess I want to challenge one notion that that comes out a lot that it’s just arrogance or it’s just Hubris in other words I would say is it arrogance or is it are they crooked because if if if it was simple arrogance they wouldn’t need to be hiding the fact that they they wouldn’t hide the fact that they’re that they’re cooking the books and changing the definition of the CPI to make it look

better than it than it make it looks less harmful on people than than inflation actually is or not saying out loud yeah we’re going to be taking away value from your checking account and your savings account every single month uh for the foreseeable future by policy by intentional policy Etc and your earnings so to me that gets back to that biblical reference when you have to start hiding things in the dark rather than shouting from the rooftop there’s probably a clue that it’s crooked but any comments from you on on whether it’s

arrogance or crookedness that that underlies these policies I am I would would hate to malign individ uals with intent to deceive but I I feel very comfortable in pointing out how unreliable a lot of government statistics have turned out to be how often revisions to employment numbers and growth numbers completely change the earlier understanding of what had been happening in the economy and um and I would say why why not allow at least Congress where you have elected officials to to weigh in on whether they

think it’s appropriate to deliberately debase the value of our money unit and I heard you cite earlier the 1792 law and currencies and that was based on Thomas Jefferson’s notes on the establishment of a money unit for the United States and he felt that if we make the dollar our unit we have to then say with precision what a dollar is and the founders thought that it was it was extremely important to have stable money with Integrity that people could trust that it would remain a certain value and

that was defined in terms of a specific weight of gold or silver and they hoped that would become a universal standard and certainly a a permanent measure it’s uh Article 1 Section 8 of the constit itu that gives Congress the power to regulate the money and it’s it’s in the same sentence that gives Congress the power to Define official weights and measures because money was meant to be a measure and not something subject to to variance going forward so I would like to recapture that concept and it seems

to me perfectly reasonable to to ask the American people do you think you think we should have zero inflation does that does that fit with your idea of stable prices or do you like that purchasing power is intentionally reduced at least 2% per year by the fed’s monetary policy decisions so that the dollar over over let’s say a hundred years goes um to being worth at 2% in inflation um about 5 cents or 3% inflation well I might have to reverse that 13 cents and 5 cents at 3% so that was once brought up at a Federal

Reserve meeting and one of the members of the Federal Open Market Committee who was the head of a Federal Reserve District Bank Jerry Jordan said I don’t think we should be asking people whether they they want the to depreciate 2% a year or 3% a year he said I think we should be asking them do you think it should depreciate at all why can’t a dollar be worth a dollar in a hundred years or 50 years why can’t it be as good as gold and um and that goes back to that founding principle that the the value of our currency is insulated from

rule of men it’s it’s uh determined by rule of law and I think that’s much more consistent with our our framework for government and with the idea that that it’s a government that serves the people and not vice versa being able to manipulate the value of the dollar by controlling the cost of capital and interest rates in a free market Society is is tan amount to saying that money should serve as yet another tool of economic control by the government rather than being as you started out saying this vital planning instrument

that every family every individual uses to make decisions about what to buy what to sell uh what to produce what to consume whether to work or engage in Leisure uh whether to save money whether to invest it the the whole idea of a free market economy uh Works in delivering optimal outcomes meaning maximum prosperity to participants when price signals are accurate and in order to convey accurate price signals the money has to be meaningful and dependable so it’s really the oxymoron in saying stable inflation

uh is somehow a goal if if it’s stable it’s not inflating but I think it also shows how in congr that concept is with a free market economy that needs price signals so that um transactions take place where where supply and demand meet and that has to be at a price that then reflects those forces and and when that gets distorted because the unit itself doesn’t convey accurate price signals then then I think you’re in trouble of the sort that we’ve seen it really shows up in malinvestment and and distortions and

decisions about long-term capital projects and I think that gets back to something you brought up way in the beginning which was that the freedom to make your own decisions about your life based on truth is part of what it is to be human to be a person and that anything that interferes or infringes on your ability to make decisions in an informed basis about your own life takes away from your intrinsic rights as a as a human about Who We Are Who we’re made to be uh I remember working as a as an intern at an

engine major engineering company in the late 70s early 80s and we were doing energy audits on all kinds of governments and other facilities and everything and half of our work was doing the energy audit part which was the heat loss and heat gain and insulation and calculations all and half of it was trying to figure out what was inflation going to do to all the net present value of these so called dollars that we were using and then you’re going to have your savings yeah but your savings are going to be in smaller

dollars in the future so it does it really pay you back for all oh yeah and by the way you have a high interest on all your all your uh loans you have to take out to buy the ins insulation all that junk so just whether it’s at the individual household level whether it’s at the business level the the countries doing trade with each other you you point out that at every level having a stable monetary basis frees up so much bandwidth to make proper decisions um rather than sitting there trying to guess through this fortune telling in uh

crystal ball about these these weights and measures that are going to be changing it’s ridiculous that I scientific background you can’t have your your weights and measures changing all the time how can you make any any decisions go ahead well no a sound money Foundation to your point is is the only appropriate platform for productive economic decision making and ultimately growth I can’t help but bring up this question audit the fed and the FED um we’ve heard proposals for both you’ve pointed out in some recent article in

some recent interviews and articles that uh the FED has been audited but not according to the rules that other people have or other businesses have to follow Etc um and the FED is also a provocative question uh it’s been uh baned about uh Ron Paul has been perhaps a a champion of that others have said no you can’t do that cuz you got to we need the FED to protect us from the from the ch is destroying your currency or whatever what are your views on the necessity or the desirability of and possibility of

auditing the FED in a meaningful way or do we even need the FED I remember um a year after Allan Greenspan had left after being the head of the world’s most powerful Central Bank the Federal Reserve for close to 18 years he was asked exactly that question on air on fxse business why do we even need a a central bank David asman asked him as the moderator and I suppose you could have expected this the chairman of the FED prior chairman to just say ridiculous question obviously us enjoys soft power

around the world we have the dominant Reserve currency that gives us some geopolitical advantages and and because of our depth and financial markets there there are many arguments in favor of having the dominant Central Bank in the world however green Spence’s response I think is is very um intriguing he said it was an interesting question and he said we live in a Democratic Society so we have decided to have Fiat money and that’s Latin it basically means it’s money because I say so it’s I declare so be

it and Greenspan went on to say if you’re going to have Fiat money provided by government it can’t work in the same way as he said if you have either a gold standard or a currency board where there’s a finite quantity of money where it’s limited um if you don’t have some kind of limit in creating money and you just have an everg growing money supply he said history has shown you will have inflation with very dilar effects and he ended up saying I think I’m quoting there are some of us myself included Greenspan said who think we did

very well under the international gold standard from 1880 to 1913 and even as chairman and I had the privilege of of meeting with him pretty regularly when he was chairman and after he had been chairman and he remained intellectually consistent with views saying when we had a ghou standard we did have disturbances but they were limited and they self-corrected versus when you’re controlling the money supply and and we’re really talking about not just for the United States but as Robert Mandell a Nobel Prize winner who I greatly

admire always said the only closed economy is the world economy so you have spillover effects from whatever our Federal Reserve does um I think that we see that you you have crashes like 2008 I mean the Federal Reserve was really set up to prevent these massive breakdowns but even Bernan said that what happened in 2008 had worse consequences than the Great Depression so what do we gain from having a Federal Reserve because I think you could make the argument there was no other Institution that could be deemed more responsible

for miscalibration the amount of money and Credit in the world leading up to the 2008 Global Financial meltdown than the US Central Bank I mean they had the most power to control money and credit so it’s reasonable if radical to say why not in the FED I have tremendous respect for um Ron Paul and I and I h i proudly say that radical Solutions are something likewise to be proud of radical again going to the Latin refers to the root getting to the fundamental issue which brings us back to trustworthy money can the FED deliver

it I won’t say at this point whether to End the Fed but should we reform it should there be limits on how much government debt the Federal Reserve can purchase how much federal debt it can monetize how much purchasing power it create literally out of thin air with a keystroke by crediting The Reserve balance accounts of the member banks who are required to have cash Accounts at the FED when it buys treasury Securities from those institutions it merely writes up the amount of cash in their accounts

the FED um that’s a power it has should it should there be limits on how much money the Federal Reserve can pay Banks to keep that money seting in cash that’s something relatively new it was only after 2008 as part of an emergency package that the Federal Reserve gained the right to pay interest on those cash accounts that Banks must keep at the Federal Reserve but now that has become the primary tool the FED uses it doesn’t try to fight inflation the way Paul vuler did by buying and selling treasury

Securities it just more in keeping with what the old Soviet garu Darman go Bank the old Soviet state bank used to do during the era of the Soviet Union which is to just dictate the interest rate not with any regard to Market forces but just dictate it and the Federal Reserve now pays currently it’s paying 4.4% on those cash accounts and since it started paying very very high interest and that started in March of 2022 so in less than those three years we’re coming up on the three-year Mark over a half trillion

dollars has been paid by the Federal Reserve in the form of interest to those Banks paying them not to lend that money out keep it in cash sitting in your deposit account at the FED that I think if the American public was aware of it would would rub people the wrong way for two reasons one if if the Fed was not paying Banks money to keep them from lending it elsewhere some of that money it’s 3.2 trillion currently that’s a lot of money sitting at the FED um would surely go into other treasury Securities

that would bring down those five and 10 year rates The Benchmark rates and the longer term rates that affect mortgages but some of it even better would be loan to the private sector the FED created those High Reserve accounts those High cash balances by purchasing government debt but then it keeps them coralled by paying this excessive High rate of interest and I think that has messed up the yield curve and caused this weird anomaly where the the rate the FED pays is 4.4 and yet we see High Ates for the

longterm the 10year instead of having a a a normal yield curve um you see that Banks I think speculate banks are more interested in engaging with the fed and listening to the latest statement and If the Fed starts talking about um being more hawkish then they think well let’s just keep the money sitting in cash why lock it in for these longer five or 10 or 20 or 30y year treasury security why lock it in the fed’s going to keep paying us to do nothing to keep it in cash we don’t even have to hire a a a

loan officer we just have to worry about a compliance officer and so the examiners stay happy at the FED um I think that’s a mistake I would rather see the FED eliminate paying interest on reserves and that’s what an audit I definitely would audit the fed that’s what an audit would reveal I’d like to know how much of that half trillion has gone to the top five largest US Banks I’d like to know how much of that half trillion has gone to foreign owned Banks because they also benefit from this and

we see that Banks belonging to the European Union or or other rivals in Asia they can park their cash also at our fed and when their own central banks are paying much lower rates as their target interest rates they’re more than happy to pick up this bonus which is in the end coming out of Treasury which means it’s being paid by by taxpayers because if the money was not being paid out and right now the FED is even losing money as it pays that interest to Banks it would otherwise go back to Treasury

and it would it would increase those funds available to tax payers another thing that you have been coming out very large on in fact you said earlier you you gave a little teaser early in the interview you said why shouldn’t the dollar be as good as gold and the title of your recent book published just last year is good as gold and you have a interesting proposal in there about what if we had a long Bond that’s redeemable potentially in gold at the at maturity can you tell us why you think that that is a seriously uh

virtuous proposal why it should be given a serious look by the current Administration I see that as a a winwin initiative that is actually doable it’s it’s one thing for someone such as myself to to criticize the Federal Reserve but if you really want to have something concrete happen to to draw attention to the the burden that works against individuals in the United States when you have fiscal and monetary policy that empowers government that that reduces purchasing power through no fault of their own people have to deal

with inflation and that then requires um the Federal Reserve to ratchet up interest rates so it’s a double whammy for for the average American paying higher interest rates and having to deal with inflation if you want to change the Arc of that unsustainable situation you have to do something um that’s an actual program the United States is the world’s largest holder of gold reserves we have 261 million ounces and we have been carrying them since February 1973 at a book value at Treasury and also recorded

on the fed’s balance sheet as being worth 11 billion at $422 an ounce there is a tremendous windfall profit to be captured if we were to Mark those to Market and this is now being discussed um in many Realms uh because people are seeing that gold is approaching $3,000 an ounce there’s close to3 trillion worth of windfall profit what I’m suggesting is first I don’t want someone to get the bright idea to just sell off our goal and take that money and give it to Treasury and here we are running these massive

deficits to me that’s sending it down a rat hole no I want to make sure that can’t happen I want to lock up our gold Holdings by marking them to Market but holding them as specific collateral and issuing long-term treasury bonds that alone will get the world’s attention a relinking of the US dollar to Gold after over 50 years and these should be made available to bond holders and essentially the instrument it would work much like a treasury inflation protected security a tips bomb does today it would be saying

you’re you’re willing to make a loan to the US government but you’re concerned about the possibility that purchasing power will go down over the life of the bond Now tips Bond pays back gives additional compensation in addition to the real rate of return based on the Consumer Price Index so you get compensated for unanticipated inflation in addition to just making a loan to the US government what a goldbeck bond would do is say at maturity you can redeem your instrument in either the face value amount or a pre-specified

amount of goal let’s say an ounce and that would be for the bond holder the equivalent of a US Treasury security and a Futures option on gold I think such an instrument would be over subscribed and would end up being a very efficient and inexpensive way for the US government to borrow but even more importantly this would serve as a barometer we could start to look at the yield on a goldback treasury offering compared to a traditional treasury offering and and that would show aggregate expectations about the future

purchasing power of the dollar because it would reflect what a premium Bond holders would pay to know that they would have the option to be repaid in gold which for a lot of people is even better than the CPI because they look at a loss of dollar purchasing power with with gold as kind of a surrogate for the real economy and for Commodities in general and not just not just a number compiled by the Bureau of Labor Statistics so I think that would be very worthy and and appr propo as we enter this this Golden Age under President

trump it seems an ideal time to to launch such an initiative and have it out there and say we want fiscal policy to do better we want to move toward a balanced budget we want monetary policy to move toward stable prices and not just continual inflation even at a low rate we don’t want that steady erosion of our legal tender I think it could be held up as as an ideal and to our trading partners if you start to measure the the variance between the Dollar’s value in terms of gold compared to these

other currencies you get a very clear-cut picture um if you look over the last decade at how the currencies of our five major trade partners that would be Mexico Canada European Union Japan and China how their currencies have been debased relative to Gold even though the United States dollar has also depreciated ours has performed the best against that standard and that begins to say whether it was intentional or not the currency misalignment has given an unfair trade advantage to our trade partners and there needs to be some kind

of compensation probably most straightforwardly in the form of a terara just to bring us up to a level monetary International playing field and just one brief example just in 2024 the Mexican peso and Mexico’s our largest trade partner depreciated 23% against the US dollar so even if you’re talking about a 25% tar that would barely start to compensate for the pricing advantage of of products coming in from Mexico that come in 23% cheaper because of that currency impact you could avoid by just looking at at call

Gold the neutral reference asset um then you don’t even have to say uh we’re questioning your monetary policy currency manipulation is carried out by central banks these days and all of those same countries are major trading partners their central banks are all signaling looser monetary policy coming up at a time when our our own Central Bank is saying we’re taking wait and see attitude the European Central Bank is talking about a 2% Target interest rate by the summer and here we are at 4.4 so you start to see how how these

misalignments which are conducted by having different interest rate targets carried out by other central banks have immediate effects in the exchange rates and those exchange rates substantially shift the terms of trade when it comes to imports and exports of goods and services it sounds a lot like the um confusion that happens at the household level or the business level now you scale it up to the international level it’s a so much wasted effort so much now you’re going to apply tariffs to compensate for the sliding scale that’s

taking us in different directions rather than just saying let’s get on honest an honest basis and then we can get back to the business of actually uh making honest decisions based on uh honest expectations of what the money age with your assessment uh interesting we’ll put a link in the in the description of this video to an article uh saying that gold is now the second largest world Reserve asset ahead of the Euro so that’s uh as an interesting thing to keep in track because watch their body language in

addition to what they what they central banks are buying yeah well Dr Shelton this has been a great introductory uh tour Whirlwind tour for me and for our viewers and subscribers uh we have some more topics the next time we can get you back on we’d love to talk about a Fort Knox gold audit which I understand can’t be just limited to the to Fort Knox itself because according to some uh analyses about half of the treasury’s gold is supposedly kept at Fort Knox also kept at the fed the treasury Etc so

we need to talk about what would be a truly meaningful audit also question about the Dodd Frank act next time is it true that quote unquote nothing in the bank is yours if you really get down to it from a legal ownership standpoint and FDIC protection uh what happened during the Silicon Valley Bank Signature Bank First Republic Bank uh failures in 2023 and Janet yelling in testimony before Congress saying well we had to make some exceptions here because these were systemically important was that a saying

the quiet part out loud that the system was at risk so we want to talk to you more about those things next time we’ve been speaking with Dr Judy Shelton monetary Economist and author of the book good as gold Dr Shelton thank you for joining us this first time on Liberty and finance thank you very much enjoyed it so much this is Kaiser Johnson with liberty and finance and these are the miles Franklin weekly specials for February 17th through February 24th 2025 while supplies last right now you can swap any uncirculated

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