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Concept of gold bond showing with Gold bars with Stock Market Graphs or charts in background getty There’s a weapon the Trump Administration should unleash to begin a huge, much-needed overhaul of the Federal Reserve. The Treasury should issue government bonds linked to gold. These securities would provide a simple everyday metric as to whether Washington is undermining or maintaining the value of the dollar. Noted economist Judy Shelton, in her seminal book Good as Gold: How to Unleash the Power of Sound Money, provides a model for how this would work. Washington would sell a zero-coupon bond with a maturity of, say, five years. The profoundly positive kicker: At bond maturity the investor would make a choice—to get the principal back in either dollars or in gold. For example, if you bought a five-year gold bond for $1 million, at maturity the bond would permit you to receive cash or a specific amount of gold, in this case, around 280 ounces. If Washington and the Fed misbehaved, as they have in the recent past, you might collect gold worth $1.5 million. Washington would set aside a certain amount of the 261 million ounces of gold it holds to cover its potential liabilities. The beauty of this is that people every day would be able to see if Washington was messing around with the dollar’s value. A weak dollar would mean Uncle Sam would lose gold. Instinctively, most people wouldn’t like that, as they’d know it was a portent of trouble. The price of these gold bonds would be a great barometer of Washington’s financial health. For a variety of reasons, gold keeps its intrinsic value better than anything else on earth, and has for thousands of years. It is to stable value what the North Star is to navigation.…