Gold: The Final Answer to America’s Debt Crisis and Fiat Fiasco According to Economist Dr. Judy Shelton

America’s Debt Addiction: A Ticking Time Bomb

With U.S. debt skyrocketing to nearly $36 trillion, the cost of servicing that debt is squeezing taxpayers for billions annually. Dr. Judy Shelton warns that we’re past the point of no return—just keeping up with interest on the debt costs more than defense spending. This isn’t some hypothetical threat; it’s an existential crisis, one that leaves the American dream gasping for air under the weight of its own currency.

In her book, Good as Gold: How to Unleash the Power of Sound Money, Shelton points out that U.S. federal debt has gone from $400 billion in 1971 to an eye-watering $36 trillion today. The kicker? The cost of managing this debt is nearly doubling decade after decade. The Congressional Budget Office (CBO) has already projected a mind-numbing $10.6 trillion in interest payments over the next ten years alone. This isn’t just fiscal irresponsibility; it’s fiscal madness.

And what’s worse? The Federal Reserve is fueling this debt addiction, quietly orchestrating a new kind of economic control by bending banks into government-controlled utilities. Through backdoor channels, the Fed has been rigging interest rates and tightening the noose on private lending. Remember the emergency powers granted to the Fed in 2008? They haven’t gone away—they’ve simply been normalized, allowing the Fed to bleed taxpayer dollars into a system of manipulated reserves that props up only the government and the banking elite.

The Fed: Complicit in America’s Dollar Dystopia

Dr. Shelton doesn’t pull punches: the Fed is in bed with Congress and the White House, complicit in deficit spending that’s wrecking the dollar’s value. By choosing to inflate the debt away, the Fed is actively eroding your purchasing power. Think about that the next time you buy groceries or fill up your gas tank. The Fed is a stealth tax on your freedom, on your ability to save, invest, and actually have a say in your financial future.

To top it all off, the Fed has grown “too prominent, too powerful, and too political.” According to Shelton, the central bank is more than just a puppet for monetary policy; it’s a roadblock for any president attempting to implement a meaningful economic agenda. How does that sit with a country supposedly based on freedom and democracy? Our own central bank, created to provide stability, is now actively undermining the very system it was supposed to protect.

Gold: America’s Last Line of Defense?

Shelton’s solution? Return to gold, the original backbone of real economic value. From the classic Gold Standard to the Bretton Woods system, history shows us that stability—and prosperity—comes when the dollar isn’t just paper, but backed by tangible wealth. With central banks worldwide stacking gold in their reserves, it’s clear they see the writing on the wall for fiat currencies. And the U.S.? Still sitting on a stash of 261 million ounces.

Shelton’s bold proposal would see the Treasury issuing “Treasury Trust Bonds” backed by gold. Investors would have the choice at maturity: take your return in dollars or get the equivalent in actual gold. Imagine the Fed having to back the dollar with something real—talk about a check on government power. This would force some real accountability, making our currency more than just a symbol of unrestrained spending.

The Dollar Isn’t What It Used to Be

This is the cold truth: the dollar once meant something. It was “as good as gold.” Now? It’s a hollow shell, propped up by debt and the illusion of value. Shelton argues we should use America’s gold reserves to back a new form of bond that’s collateralized in actual gold. By doing this, the dollar could regain its purchasing power, and our economy wouldn’t be at the mercy of the Fed’s whims and Congress’s reckless spending.

Let’s be clear—since 1971, the Fed has treated us to the fantasy that the dollar’s value can just be printed into existence. They value gold at a laughable $42.22 per ounce, while the real market value is closer to $2,700 per ounce. This gap is a testament to how distorted the system has become.

Conclusion: Time to Prepare

Dr. Shelton’s warnings are crystal clear: if we want to restore financial stability and protect our hard-earned wealth, we need to demand real value in our currency. Otherwise, we’re just sheep in a system designed to drain us dry. Get educated, get prepared, and start taking steps to protect your assets. If the system crashes, it won’t be the Fed or the government left holding the bag—it’ll be you.

Download “Seven Steps to Protect Yourself from Bank Failure” by Bill Brocius here.