Jun. 30 at 4:33 PM
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Economist Judy Shelton is urging President Trump to issue 50-year gold-convertible Treasury bonds, termed "Treasury Trust Bonds," on July 4, 2026, to coincide with America's 250th anniversary. These zero-coupon securities would allow investors to redeem them at maturity in 2076 for either U.S. dollars or a pre-specified weight of gold, aiming to restore confidence in the dollar and lower government borrowing costs.
Collateral and Valuation: The proposal leverages the U.S. official gold reserve of 261 million ounces, currently carried on Treasury books at a statutory value of
$42.22 per ounce despite market prices exceeding
$3,300. Shelton argues this undervalued asset should serve as collateral ("family jewels") rather than being sold, effectively monetizing the difference between book value and market value to back the new debt instrument.