Judy Shelton: It's "Day 1" Of The Reckoning As US' Unsustainable Fiscal Path Runs Out

This episode explores the solvency of the United States and the effectiveness of current monetary and fiscal policies. Against the backdrop of consistently unsustainable fiscal paths highlighted by Congressional testimony, Dr. Judy Shelton, an economist and former advisor to President Trump, assesses the current situation as a critical pivot point. More significantly, she critiques the Federal Reserve's monetary policy, giving it a "D" grade for its flawed model and failure to acknowledge the impact of fiscal overspending, leading to a disproportionate benefit for the wealthy. As the discussion pivoted to Congressional fiscal policy, Dr. Shelton initially gave a low grade but expressed hope for improvement, emphasizing the need for Congress to take responsibility for regulating the money supply and holding the Federal Reserve accountable. In contrast to the Fed's focus on demand reduction, Dr. Shelton advocates for increasing supply through tax cuts and deregulation to combat inflation. Ultimately, Dr. Shelton proposes reforms including ending the Fed's interest payments on reserves and issuing gold-backed treasury bonds to restore a sound money foundation, potentially leading to a more stable international monetary system. This means a potential shift towards a more equitable distribution of wealth and a stronger US dollar, reflecting emerging industry patterns that prioritize sound financial practices.