Linking gold to U.S. dollar: How America's debt and fiat dependence threaten stability – exclusive i

[libertybele]

Linking gold to U.S. dollar: How America's debt and fiat dependence threaten stability – exclusive interview with Dr. Judy Shelton

With quickly rising debt levels in the U.S., dollar stability and America's economy are facing an "existential threat," warned Dr. Judy Shelton, Senior Fellow at Independent Institute and former economic advisor to President Donald Trump. She added that it is time to get back to sound money, and one historically proven option is linking gold to the U.S. dollar.

The U.S. national debt is fast approaching $36 trillion, and servicing this debt is already costing taxpayers billions of dollars yearly.

"It's come to everyone's attention now that paying the interest on the debt is now costing more taxpayer money … than to pay for our defense needs," Dr. Shelton told Jeremy Szafron, Anchor at Kitco News.

U.S. debt crisis is an 'existential' threat

The latest estimates from the Congressional Budget Office (CBO) make things more dire. The CBO has projected that the ten-year cost of servicing U.S. debt from 2024 to 2033 will be $10.6 trillion, nearly double the original forecast from 2021.

"If you ask someone, do you think the United States will still be here in 50 years? It's troubling that they almost have to think about it. We hear so much about fiscal unsustainability; if we're serious, that's an existential threat," Dr. Shelton said. "I'm not predicting that for the United States, but I'm concerned."

The concern is that the U.S. banking system is becoming a utility that channels credit back to the government to cover an increasing gap in revenues and expenditures.

"The Fed ends up regulating interest rates, controlling them by paying banks, not to make loans to the private sector. This is something that changed after 2008. The Fed was granted an emergency power to pay interest on the reserve balances," Dr. Shelton said.

Why the Fed is complicit in U.S. debt levels, dollar devaluation

The Federal Reserve is at the helm of monetary policy in the U.S., and it has been complicit in all of this by overreaching with its "no-limit" powers, according to Dr. Shelton.....................

https://www.kitco.com/news/article/2024-10-30/linking-gold-us-dollar-how-americas-debt-and-fiat-dependence-threaten

[Bigun]

 

[Hoodat]

The latest estimates from the Congressional Budget Office (CBO) make things more dire. The CBO has projected that the ten-year cost of servicing U.S. debt from 2024 to 2033 will be $10.6 trillion, nearly double the original forecast from 2021.

$10.6 trillion is based on the silly assumption that Congress balances the budget every year for the next ten years.  Since we all know that won't happen, a more realistic estimate is $12.9 trillion.

[Bigun]

Why the Fed is complicit in U.S. debt levels, dollar devaluation...

Complicit??? Try root cause!

[Bigun]

https://twitter.com/RonPaul/status/1852413736151056582

[Bigun]

https://twitter.com/RonPaul/status/1852443008664498464

[Bigun]

[DefiantMassRINO]

Linking its currency to gold hasn't helped Zimbabwe.  It's not that they lose faith in the currency; it's that they lose faith in the issuer of that currency.

https://www.aljazeera.com/news/2024/10/24/zimbabwes-gold-backed-currency-loses-half-its-value-why-and-whats-next
Zimbabwe’s gold-backed currency loses half its value: Why and what’s next?
Six months in, the gold-backed ZiG touted as a solution to the currency crisis is struggling to win confidence.

By Al Jazeera Staff
Published On 24 Oct 202424 Oct 2024

Less than six months after Zimbabwe launched yet another new currency, it was forced to devalue it, signalling new challenges for the Southern African country’s efforts to stand up a local currency and reduce dependency on the United States dollar.

In April, Zimbabwe’s central bank launched the ZiG, or Zimbabwe Gold, which was hyped as a stabiliser amid the country’s long-running currency and economic crisis.

But in late September, authorities slashed the value of the new gold-backed currency by more than 40 percent. ...

[Smokin Joe]

Linking its currency to gold hasn't helped Zimbabwe.  It's not that they lose faith in the currency; it's that they lose faith in the issuer of that currency.

https://www.aljazeera.com/news/2024/10/24/zimbabwes-gold-backed-currency-loses-half-its-value-why-and-whats-next
Zimbabwe’s gold-backed currency loses half its value: Why and what’s next?
Six months in, the gold-backed ZiG touted as a solution to the currency crisis is struggling to win confidence.

By Al Jazeera Staff
Published On 24 Oct 202424 Oct 2024

Less than six months after Zimbabwe launched yet another new currency, it was forced to devalue it, signalling new challenges for the Southern African country’s efforts to stand up a local currency and reduce dependency on the United States dollar.

In April, Zimbabwe’s central bank launched the ZiG, or Zimbabwe Gold, which was hyped as a stabiliser amid the country’s long-running currency and economic crisis.

But in late September, authorities slashed the value of the new gold-backed currency by more than 40 percent. ...

Not much different than the Rooseveldt gold roundup of the 1933, 'buying' gold from people at the fixed price of $20.67/oz, and then changing that price to $32.32/oz later that year, effectively devaluing the greenbacks by 56%.

[libertybele]

Harris will never link gold to the dollar -- so right now it's a wait and see what happens anyways. 

[DefiantMassRINO]

It looks like gold closed at $2736.27.  Yikes!