Judy Shelton Is Ready to Turn to a Gold StandardJudy Rubio
Judy Shelton received Donald Trump’s support when she got the nomination to join the Federal Reserve and become part of the board of governors. Now the economic advisor expressed her opinion regarding the new opportunity of turning back to a gold standard. According to Shelton, this will take a cryptocurrency direction. Other board members are advocating for this innovative approach as well. After the discussion, the board decided that it is worth trying to add digital currency and make the mix more varied.
The mass media sources took an interview asking the advisor to tell more details about the issue. During the interview, Shelton announced that she sees the move very important since it will help the country’s economy in the long run. She believes that a gold standard stands for the U.S. monetary policy only. Money is a unit of account. It is a reliable measure. It is also a dependable store of value. She added that she has a futuristic vision of the gold standard and it can include a digital currency element. She noted that central banks work differently and apply other methods – they are not serving the private sector and do not give that strong unit of account. When the gold standard was in use, many had enough stability. Shelton says she misses something that central banks should use in a cryptocurrency way.
The Dollar Will Serve as a Global Standard
The sector of digital currencies is expanding. There are more and more participants who are ready to try out the opportunities that the crypto industry offers. Shelton has had quite much experience in the area and cryptocurrencies are not something new or unknown for the advisor. Shelton has already advocated for a digital U.S. fiat currency’s potential. Her mission was to help protect the primacy and preserve the dollar’s strength and influence on a global scale.
As an advisor, Shelton understands that the country requires a new direction. The USA has met too many distortions of the Fed in the past fifty years. Nowadays, the country’s society plays by the market’s rules, and this is something the Federal Reserve cannot ignore. The committee is powerless when it comes to the entire country’s economy. None of the governors can decide on the cost of capital. Only market supply can determine the rate. The Reserve cannot predict and foresee future events and market tendencies. The authorities cannot know the right rate, either. It would be a great mistake to believe that people decide what rate will be in the future since this sort of attitude may lead to failure. The resurrection of Gosplan is no option at all and capitalism’s success depends on many other factors.
Shelton says that the activism coming from central banks prevents the market from free functioning and makes it dependent on an overreach planned centrally. This is what BTC’s proponents think – they do not believe in the immunity of the currency and claim that blockchain technology cannot ensure that. There is no single entity that the market can use to manipulate the cryptocurrency’s value.
Digital scarcity may have too few advocates yet Shelton feels sympathetic to them. They admit that BTC may induce a deflationary monetary policy. In this case it would serve as a reserve currency and would have limited supply. The advisor noted that she is ready to consider various approaches. She is interested in the Fed targeting a dollar price for gold. She would then link the supply of money and credit to gold. The country needs a linked system that allows both individuals and central banks to convert currency. This alternative could remove the pressure caused by inflation.
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