What is Judy Shelton's view on the U.S. economy?

She believes the economy is ready for transformation towards private sector initiative.

What does Shelton think about the future of the U.S. dollar?

She is optimistic about the dollar's future and its role as the world's reserve currency.

What is the significance of gold in Shelton's discussion?

She sees potential benefits in rising gold prices for the U.S. due to its large gold reserves.

How does Shelton view the relationship between the dollar and gold?

She believes there is no clear-cut relationship and that both can benefit the U.S.

What does Shelton mean by a 'dependable dollar'?

She emphasizes the importance of having a stable and reliable dollar rather than focusing on it being strong or weak.

What historical reference does Shelton make regarding trade negotiations?

She cites Paul Volcker's view that foreign exchange movements can quickly overshadow trade negotiations.

What anniversary does Shelton mention for her proposal?

She mentions July 4, 2026, the 250th anniversary of the Declaration of Independence.

What is the current book value of U.S. gold reserves?

The U.S. Treasury carries its gold reserves at a book value of $42 per ounce.

What potential windfall does Shelton mention regarding gold prices?

If gold prices rise to $3500 or more, it could represent a windfall gain close to a trillion dollars.

In gold we trust? Ex-Trump economic advisor makes the case for a dollar reset

00:03:50

https://www.youtube.com/watch?v=XvZQmi1Op-U

Summary

TLDRJudy Shelton, a monetary economist, discusses the potential transformation of the U.S. economy under President Trump's vision, advocating for a shift from government management to private sector initiative. She expresses confidence in the U.S. dollar's future as the world's dominant reserve currency and emphasizes the need for sound financial principles. Shelton highlights the U.S.'s significant gold reserves and proposes the issuance of a 50-year gold convertible Treasury security to protect these assets and ensure their use as collateral, particularly in light of rising gold prices.

Takeaways

💡 The economy is ready for transformation towards private sector initiative.
💵 Shelton is optimistic about the future of the U.S. dollar.
🏅 A dependable dollar is more important than a strong or weak dollar.
📈 Rising gold prices could benefit the U.S. significantly.
🏛️ Shelton proposes a 50-year gold convertible Treasury security.
📅 The proposal is linked to the 250th anniversary of the Declaration of Independence.
🔒 Protecting gold reserves is crucial for future administrations.
📊 Foreign exchange movements can overshadow trade negotiations.
💰 The U.S. holds 261 million ounces of gold at a book value of $42.
🌍 There is no substitute for the U.S. dollar as the world's reserve currency.

Timeline

00:00:00 - 00:03:50
Judy Shelton, a monetary economist, believes the economy is poised for transformation towards a private sector-driven model, moving away from government management. She expresses confidence in the future of the US dollar as the world's dominant reserve currency, emphasizing the need for sound finances and money. Shelton notes that skepticism about the dollar stems from perceptions of the Federal Reserve's limitations, which has led to increased interest in gold and other currencies. She highlights the impact of foreign exchange movements on trade negotiations and advocates for a dependable dollar rather than a strong or weak one. Shelton also discusses the potential benefits of rising gold prices for the US, given its substantial gold reserves, and proposes the issuance of a 50-year gold convertible Treasury security by the US Treasury to secure these reserves and prevent future administrations from selling them off.

Mind Map

Video Q&A

What is Judy Shelton's view on the U.S. economy?
She believes the economy is ready for transformation towards private sector initiative.
What does Shelton think about the future of the U.S. dollar?
She is optimistic about the dollar's future and its role as the world's reserve currency.
What is the significance of gold in Shelton's discussion?
She sees potential benefits in rising gold prices for the U.S. due to its large gold reserves.
What proposal does Shelton make regarding U.S. Treasury securities?
She suggests issuing a 50-year gold convertible Treasury security to protect gold reserves.
How does Shelton view the relationship between the dollar and gold?
She believes there is no clear-cut relationship and that both can benefit the U.S.
What does Shelton mean by a 'dependable dollar'?
She emphasizes the importance of having a stable and reliable dollar rather than focusing on it being strong or weak.
What historical reference does Shelton make regarding trade negotiations?
She cites Paul Volcker's view that foreign exchange movements can quickly overshadow trade negotiations.
What anniversary does Shelton mention for her proposal?
She mentions July 4, 2026, the 250th anniversary of the Declaration of Independence.
What is the current book value of U.S. gold reserves?
The U.S. Treasury carries its gold reserves at a book value of $42 per ounce.
What potential windfall does Shelton mention regarding gold prices?
If gold prices rise to $3500 or more, it could represent a windfall gain close to a trillion dollars.

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00:00:03
I think the economy is ready, willing
00:00:07
and able to make the transformation
00:00:11
happen. And the transformation is the
00:00:14
vision of President Trump to go from
00:00:17
being an economy that I think was
00:00:20
increasingly shifting toward being
00:00:22
government managed and governmentfed to
00:00:26
one that will be driven by private
00:00:28
sector initiative which would be so much
00:00:31
healthier, so much more productive,
00:00:33
which could deliver genuine prosperity.
00:00:36
My name is Judy Shelton. Uh I am a
00:00:39
monetary economist. I'm skeptical when
00:00:43
when people doubt the future of the
00:00:45
dollar or the role of US currency as a
00:00:49
world's dominant reserve currency. I
00:00:51
think I think the dollar has a great
00:00:53
future ahead of it. Um I think that we
00:00:57
need to be true to our principles,
00:01:00
founding principles and go redouble our
00:01:04
efforts to restore sound finances and
00:01:06
sound money. And um I think that the
00:01:10
problem with the dollar has been
00:01:13
that people realize that the Federal
00:01:16
Reserve is not omnisient and maybe that
00:01:19
explains some of the movement into gold
00:01:21
and even other
00:01:22
currencies. Um there was a little bit of
00:01:25
a tantrum when the US said that we were
00:01:27
going to get tougher on trade
00:01:29
negotiations and that shows up in
00:01:32
foreign exchange markets. But one thing
00:01:35
I always remember Paul Vulker, former
00:01:37
Federal Reserve chairman, wrote in a
00:01:40
book called Changing Fortunes. He said
00:01:43
that all of the trade negotiations that
00:01:46
might take place even over years can be
00:01:50
overwhelmed in 10 minutes by foreign
00:01:53
exchange movements. So I think it's very
00:01:56
important to look at the need for not a
00:01:59
strong or a weak dollar, but a
00:02:01
dependable dollar. There really is no
00:02:03
substitute for the US dollar as the
00:02:06
world's reserve currency. So I expect to
00:02:09
see the dollar strengthen in the future,
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not weaken. For me, there's not a
00:02:14
clearcut relationship between gold and
00:02:17
the dollar right now. That is, it's not
00:02:20
an eitheror. I think that um it's very
00:02:24
much to the benefit of the US to have
00:02:26
the gold price go up in this sense. We
00:02:30
are the world's largest holder of
00:02:32
official gold reserves. The US Treasury
00:02:36
owns 261 million ounces of gold and we
00:02:40
carry them at a book value of
00:02:43
$42. So as gold gets to
00:02:47
3500 or more, we're talking about a
00:02:51
potential windfall gain there. That's
00:02:54
getting close to a trillion dollars. I
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think a very smart thing for the US to
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do and I'm hoping this could happen next
00:03:02
year specifically on July 4th uh
00:03:06
2026 the 250th anniversary of the
00:03:09
signing of the Declaration of
00:03:11
Independence. I would like the US
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Treasury to issue a 50-year gold
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convertible Treasury security which at
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maturity could be exchanged for a fixed
00:03:23
amount of gold. And I say that because I
00:03:26
think it would be a good way to ensure
00:03:28
that nobody in in the following
00:03:31
administrations between now and then
00:03:33
gets the bright idea to sell off those
00:03:36
gold reserves. Let's let's use them to
00:03:38
warehouse to to serve as collateral for
00:03:42
this long-term gold bond.