Loading ...For that to work the incentive to take the cash instead of GOLD the price will need to be much higher ! The Treasury should not risk its GOLD being takin’ Thats why NIXON closed the GOLD WINDOW ! The Price wasent high enough !
Her idea will help prevent a Bond Market collapse and eliminate the need for higher interest rates …The Fluctuation its ALL in the PRICE of the BOND ,not the rate of interest .Very similar to a ZERO COUPON BOND ..everything is in the price at ZERO interest…The Bond Price will FLOAT ,the interest rate will stay fixed at zero…..the price will reflect inflation ….I traded ZERO COUPON BONDS when rates were high in 1970’s and falling ,VOLKER reversed everything.I bought Zero coupon Bonds at severe discount example ! $ 120 for a Bond that matured in 20 years at full price $1000.00 ..What happened was rates came down from 21% down to 6 % the BOND skyrocketed. I got 1300 for a Bond I bought at 130.00… That process can be reversed ! JUDY SHELTON learned that from VOLKER !!!!
ALL US DEBT can be converted to a ZERO COUPON BOND guaranteed by a GOLD option if the Price is allowed to float then the GOLD will stay PUT in the Treasurys hands where it ought to be..The cost to Treasury on its debt will be ZERO ….The Treasury has found a way to protect itself ,the PUBLIC needs to own GOLD to do likewise since they dont issue debt BONDS ..The PUBLIC NEEDS to own GOLD ..!!(as long as the convertibility remains intact….)..
JUDY SHELTON said the Bond buyer will get back the “FACE” value of the BOND,so investers should not buy the BOND since the price go higher than the FACE value as I did in the example ,they should buy GOLD as long as convertibility feature remains intact.I hope my ZERO BOND experience explains why you need to own GOLD…..