Judy Shelton: How a gold-backed bond could open an avenue to monetary reform

Section:

By Judy Shelton
New York Sun
Saturday, September 5, 2015

Today's global economy is so utterly dependent on the latest move by a major central bank, or even the latest utterance of any semi-important monetary official, that it seems scarcely able to function without gleaning hints about the next big monetary policy decision. But why has a global obsession with "monetary policy" become more important than money itself? How can we reconnect money to its more fundamental purpose of providing a tool of measurement for real economic performance? ...

Pity those who actually produce real goods, though. Mere manufacturers can't operate with the nimbleness of savvy financiers. If only money worked for them as a meaningful unit of account and a reliable store of value. ...

Why not allow the private sector to decide what fiat money issued by central banks is worth in terms of a universally-acknowledged surrogate for real money? Gold serves as a common denominator for value across borders and through time; it has historically represented a true measure of monetary value. If the U.S. Treasury were to issue a bond that could be redeemed at maturity in either dollars or gold -- at the option of the bondholder -- it would send an important signal that America recognizes the need to reverse the trend toward financialization of the economy in favor of encouraging genuinely productive output. ...

More significantly, it would establish a vital beachhead toward building a stable monetary foundation to support international trade based on a level playing field. Trading partners could emulate America’s example by moving away from currency manipulation in favor of gold-convertible money. ...

... For the full commentary:

http://www.nysun.com/national/how-a-gold-backed-bond-could-open-an-avenu...



ADVERTISEMENT

Free Storage with BullionStar in Singapore Until 2016

Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore.

Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter.

For more information, please visit Bullion Star here:

https://www.bullionstar.com/



Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Wednesday-Saturday, October 28-31, 2015

https://jeffersoncompanies.com/landing/gata

The Silver Summit and Resource Expo 2015
Park Central Hotel, San Francisco, California
Monday-Tuesday, November 23-24, 2015

http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2...

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16