Can Trump Make Money Sound Again?
Negative real interest rates have become the new normal, a sign of how far the Federal Reserve has strayed from any rational policy, not to mention the inflation of another financial bubble. US President Donald Trump, to his credit, has expressed his concern over the "false economy," and he even considered gold-bug John Allison, former CEO of BB&T and former president of the Cato Institute, for a position with the Fed.
Another cause for optimism has been his recruitment of Judy Shelton of the Atlas Network as an economic adviser. Shelton, a longtime monetary economist and sound-money advocate, gave a presentation and participated in a panel at the recent New Orleans Investment Conference, where we sat down to review how Trump could actually nudge the United States toward her constitutional legacy of sound money.
In terms of the candidate for chairman, Shelton foresees only three options: (1) continuation with Janet Yellen, (2) rearrangement with Jerome Powell (already on the board), or (3) limited change with John Taylor of Stanford University.
- Taylor rule.
- Dirty float.
- Fixing The Dollar Now by Judy Shelton (68 pages, Atlas Economic Research Foundation).
- Sound Money Project.