Treasury Just Hired a Gold Standard Advocate
Joe Brown examines Judy Shelton’s appointment as a Treasury counselor, her past advocacy for gold-linked Treasury bonds, and the possibility that her role centers on evaluating China’s financial conditions rather than reviving the gold standard. He concludes that a gold-bond initiative is unlikely to meaningfully change U.S. fiscal policy and says he does not think the appointment signals a return to sound money.
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Treasury Secretary Scott Bessent appointed Judy Shelton as a counselor in the Secretary’s office, with a stated focus on advising about currency policy and evaluating financial conditions in China.
Brown says Shelton’s appointment is more likely about assessing China than advancing a gold standard, noting she is not known as a China expert.
Shelton has advocated Treasury trust bonds that would let lenders choose repayment in a specified amount of gold; Brown says this could place some constraints on borrowing and spending.
Brown says that if gold bonds are issued, they either may be too small to affect government finances or so large that they could constrain spending and put the government at risk of defaulting.
Judy Shelton Joins the U.S. Treasury
Judy Shelton has joined Treasury as a counselor, with an official focus on currency policy and China; Joe Brown doubts the appointment signals a plan to restore the gold standard.
Why Gold Became Money
Brown explains gold’s emergence as money, emphasizing its durability, verifiability, and broad acceptance compared with perishable or inconvenient alternatives.
How Gold-Backed Paper Money Began
He describes how gold’s rising value led people to store it in banks and use redeemable paper currency, making transactions easier without moving physical gold.
Free Portfolio Stress Test (Promo)
Brown promotes a free portfolio stress test that provides investors with a customized blueprint and access to his investing courses.
Paper Money, Bank Runs and Central Banks
He argues that banks issued more gold-redeemable paper than they held, and that governments institutionalized the practice through central banking.
FDR’s Gold Restrictions
Brown recounts how FDR restricted private gold ownership and revalued gold, while the dollar remained redeemable for foreign holders.
Nixon Ends the Gold Standard (1971)
He says Nixon ended foreign dollar redemption for gold in 1971, after which the dollar continued as a widely accepted fiat currency.
Fiat Money and the U.S. Debt Problem
Brown argues that fiat money enables persistent borrowing and spending, and points to U.S. debt, deficits, and rising interest costs as evidence of fiscal strain.
Judy Shelton’s Gold-Backed Bond Proposal
Shelton has proposed Treasury trust bonds that let lenders receive a specified amount of gold, potentially adding a modest constraint to government borrowing.
Judy Shelton’s China Role Explained
Brown thinks Shelton’s China assignment is more likely tied to her analysis of hidden financial fragility in the Soviet Union and similar risks in China.
Would Gold Bonds Fix Government Spending?
He concludes that gold bonds would either be too small to affect fiscal policy or large enough to create serious debt and default risks.
Why I Hold 20% of My Net Worth in Gold
Brown says he does not think Shelton’s appointment signals a return to sound money, though he personally continues to hold about 20% of his net worth in gold.
Portfolio Stress Test: How to Access It
Brown closes by again offering viewers the free Portfolio Stress Test and access to investing education through his website.
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