Judy Shelton...And The Coming Gold Revaluation?

Submitted by QTR's Fringe Finance

If you were looking for evidence that the United States was seriously considering revaluing its gold reserves, or potentially moving toward some form of gold-linked monetary system, the appointment of Judy Shelton to advise Treasury Secretary Scott Bessent is almost exactly what you would expect to see.

News this morning reports that Shelton, a longtime advocate of monetary reform and former Trump nominee to the Federal Reserve Board, has joined Treasury as a counselor to Bessent. Her responsibilities reportedly include advising on currency policy and evaluating financial conditions in China.

For anybody familiar with Shelton’s views on gold, or the increasingly precarious fiscal position of the United States, I think this deserves considerably more attention than your typical Washington personnel announcement.

Shelton has spent years questioning the monetary system we’ve built since abandoning gold convertibility, advocating for a more stable dollar and proposing ways to bring gold back into government finance.

And now she’s advising the man responsible for managing nearly $40 trillion in federal debt.

About a week ago, I wrote an article exploring what would happen if the United States decided to revalue its enormous gold reserves, which are still officially carried on the government’s books at the absurd price of $42.22 per ounce. I explained how a revaluation could potentially create trillions of dollars in new Treasury financing capacity and, taken to an extreme, fundamentally alter the relationship between the dollar, gold and the national debt. (Read: Gold At $155,000 An Ounce)

At the time, it was a thought experiment. One I thought was worth taking seriously, but a thought experiment nonetheless. Now, barely a week later, we have one of the country’s most recognizable proponents of gold-linked monetary reform sitting inside the Treasury Department.

I don’t think that means a gold revaluation is imminent. But I do think it makes the possibility a hell of a lot more interesting. And if you’ve been following my writing about the bond market, the unsustainability of our national debt and the eventual limits of the fiat monetary system, you can probably see why this appointment has my attention.

Shelton hasn’t been subtle about her views. She has proposed issuing 50-year Treasury bonds redeemable in gold at maturity, which she calls...(READ THIS ARTICLE 100% FREE HERE).