Could the Trump Presidency usher in a return to the gold standard and strip powers away from the Federal Reserve?
Donald Trump is known to be sympathetic to the concept of a gold standard, believing it could be a good way of maintaining the stability and value of the US Dollar.
“Bringing back the gold standard would be very hard to do, but boy would it be wonderful. We’d have a standard on which to base our money.”
Multiple Trump economic advisors are also pro-gold and could advise President-elect Trump to move the U.S. monetary system back toward sound money and the financial discipline that gold commands.
John Paulson is an economic advisor to Donald Trump known for his fund’s investments in gold with Paulson & Co currently the 5th largest institutional investor the SPDR Gold Trust (GLD). The appointment of Paulson to a position on Trump’s team could also arguably bolster Trump’s position on gold in the monetary system.
Dr. Judy Shelton, part of Donald Trump’s economic advisory team, is also a senior fellow and co-director of the Atlas Sound Money Project. Their mission is to promote the principles of sound money and raise awareness of what they see as the inherent problems of our current monetary system.
When Fortune Magazine asked her how she would propose changing monetary policy, she responded with the following:
“I’m not opposed to a new Bretton Woods conference. In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal. It’s a well-accepted monetary surrogate that transcends borders and time. If you look at the foreign reserves of the most important countries, they keep them mostly in gold. I don’t want to read too much into it, but it proves that gold is not some barbarous relic.”
Concerning the Federal Reserve, Trump was asked a question in a March 2015 TV interview:
Question: Let’s go back to our audience now coming from Bob. What is your question? …