Dr. Judy Shelton: Why Shouldn't the Dollar be as Good as Gold?

Tom welcomes a well known and interesting guest for the first time to the show, Dr. Judy Shelton. Judy is Senior Fellow at the Independent Institute and author of Good as Gold, passionately advocates for sound money as a moral obligation of governments to their citizens. Sound money, according to Shelton, should maintain its value over time, acting as an unchanging standard for economic planning and transactions. She criticizes the Federal Reserve's policy of debasing the U.S. dollar through inflation targeting, which undermines its purchasing power and creates inequality in society.

The Federal Reserve was initially established to provide an elastic currency that addressed seasonal economic fluctuations. However, the role of the Fed has shifted significantly over time, leading to concerns about its growing dependence on the government for budgeting needs and potential consequences for the economy and small businesses.

Shelton argues for market-determined interest rates, pointing to historical examples like the gold standard. She also highlights the importance of accurate data in monetary policy decision-making and critiques central banks' conflicting policies on a global scale that can lead to currency wars and instability in international trade.

Shelton advocates for a new international monetary system anchored by a gold convertible long-term US Treasury bond, which would promote stability and accountability in international transactions. She recalls her unsuccessful nomination to the Federal Reserve and expresses her belief that economic growth under President Trump's agenda and Elon Musk's involvement could lead to controlling the budget and promoting sound money. Shelton urges for less central planning by governments, believing there is a collective yearning for trustworthy, stable money in society.

The interview concludes with Dr. Judy Shelton expressing her gratitude for the opportunity to discuss her ideas and the success of her book "Good as Gold" on Amazon's charts. She encourages listeners to get radical and demand sound money from their governments for a more prosperous economy based on individual liberty.

Time Stamp References:
0:00 - Introduction
0:45 - Sound Money & Morality
2:27 - Money Vs. Currency
4:32 - Price Stability?
11:52 - Fed Control & Hubris
18:30 - Central Planning & Mkts
24:03 - Fed 'Independence'
27:20 - Pricing Money Free Mkt.
36:10 - C.B. Global Effects
39:34 - BRICS & Gold?
44:34 - U.S. Gold Bonds?
55:30 - Golds History of Restraint
59:15 - Politics & Financial Plans
1:01:59 - Nominee & 'Extreme Views'
1:10:22 - Book 'Good as Gold'
1:11:50 - Get Radical & Wrap Up

Talking Points From This Episode
- Dr. Judy Shelton advocates for sound money as a moral obligation of governments to ensure economic stability and planning through unchanging currency value.
- The Federal Reserve's inflation targeting policy weakens U.S. dollar purchasing power, leading to inequality and potential consequences for the economy.
- Shelton proposes a new international monetary system anchored by a gold convertible long-term US Treasury bond for stability in global transactions.

Guest Links:
X: https://x.com/judyshel

Book: Good as Gold: How to Unleash the Power of Sound Money
https://www.amazon.com/Good-Gold-Unleash-Power-Sound/dp/1598133896

Dr. Judy Shelton is a senior fellow at Independent Institute, former chairman of the National Endowment for Democracy, and former US director of the European Bank for Reconstruction and Development. She has provided testimony before the Senate and has been consulted on international monetary issues by the White House and the Pentagon. She is the author of multiple books and has written for the Wall Street Journal and Financial Times.