This is not the classical gold standard which requires convertibility upon demand.
Shelton appears to be calling for a gold peg, which IIRC is something that Paul Volcker was using when he chaired the Fed. What Shelton is proposing doesn’t sound very controversial.
A debtor nation doesn’t control its destiny under the classical standard, and we most certainly are a debtor nation. The nations who hold our debt can sell that paper and demand gold, draining our monetary base. This was a serious issue back at the outbreak of the First World War.
That is already the case since the prices of various commodities are evaluated by the Fed system when looking at the future value of money.
Remember when France raided our Gold supply? I always wondered why we didn't just thank them for the payment on their war debt and keep the Gold.
This is not the classical gold standard which requires convertibility upon demand.
Shelton appears to be calling for a gold peg, which IIRC is something that Paul Volcker was using when he chaired the Fed. What Shelton is proposing doesn’t sound very controversial.
...
Here’s some more info on Shelton.
She’s adopted an old idea by Greenspan to issue a gold backed bond similar to TIPS. The purpose is to stabilize the foreign exchange market and discourage manipulation.
For dollar policy she favors a market approach, rather than the Fed’s current system based on their fake claim that economic growth causes inflation.
http://www.freerepublic.com/focus/f-news/3761577/posts