Saturday, May 18, 2019

Will the Next FED Board Member be a Gold Bug? Could Balance Finally be Restored?

In 1910, Senate Republican leader Nelson Aldrich and executives representing the banks of J.P. Morgan, Rockefeller, and Kuhn, Loeb & Co., secluded themselves for ten days on Jekyll Island, Georgia.

This was a secretive meeting in which no one at the time knew much about, nor knew what was discussed.

The secret would take three years to manifest itself, after which the Federal Reserve Act was passed in 1913, then three more years for the secret to become public, when journalist Bertie Charles Forbes in 1916 wrote an article about the "hunting trip".

From the year the Federal Reserve Act was passed, until this modern day, the United States has been run by a largely unaccountable body of banking elite executives, wielding ungodly powers that have shaped our economic history.

From that day onward, the United States and the West as a whole have systematically devolved further and further into a fiat based system, that cares little about accountability, or financial responsibility, preferring to simply print more and more fiat dollars to help keep this corrupt system afloat.

This financial moral bankruptcy really began to accelerate in 1933 on June 5th when President Roosevelt signed HJR 192 into law, demanding that all US citizens turn in their gold and gold certificates, disabling the citizens ability to redeem dollars for gold.

As the years went by, the Federal Reserve continued to pressure the US government from behind the scenes, moving the country further and further away from the founding fathers gold standard vision.

In 1971, it was officially time to severe all sense of sanity and all ties with the gold standard.

On August 15, 1971, President Nixon announced that the US dollar would no longer be convertible into gold bullion for international settlement and that the gold standard was officially dead.

Fast forward to today, and you will see a purely fiat based dollar system, in which digital dollars are created in untold numbers, injected into the system at a rate that would even have the founders of the Federal Reserve shaking their heads.

Now we hear statements such as "barbarous relic" from modern Federal Reserve board members when referring to honest money such as gold and silver bullion. Ridicule and disrespect for the noble metal is not only common, but expected from any "sane" economist.

Fortunately, this may be about to change.

It is being speculated that at least one of the two empty Federal Reserve Board member seats might be filled by an open gold bug.

Economist Judy Shelton is rumored to be President Trumps next pick for the Federal Reserve Board.

Judy Shelton is a friend of the precious metals community, as she is an advocate for the return of the gold standard and honest money policies.

Bloomberg reports;

"The White House is considering conservative economist Judy Shelton to fill one of the two vacancies on the Federal Reserve Board of Governors that President Donald Trump has struggled to fill.

Shelton has been contacted by the White House regarding the position, according to two people familiar with the matter who described the outreach on condition of anonymity."

Judy Shelton is currently considered a close economic adviser to President Trump and has penned articles such as those seen in the Wall St Journal, titled "The Case for Monetary Regime Change", in which she tries to address the issues in our horribly flawed fiat based system;

"Money is meant to serve as a reliable unit of account and store of value across borders and through time. It’s entirely reasonable to ask whether this might be better assured by linking the supply of money and credit to gold or some other reference point as opposed to relying on the judgment of a dozen or so monetary officials meeting eight times a year to set interest rates. A linked system could allow currency convertibility by individuals (as under a gold standard) or foreign central banks (as under Bretton Woods). Either way, it could redress inflationary pressures."

Sadly, even if nominated and appointed to the position, it is very unlikely that she alone will be able to make the radical changes that are needed to restore financial sanity and balance.

However, it undoubtedly would be a step in the right direction and for now, that's the best we can ask for.

- Source, as first seen on the Sprott Money Blog