Russia backs return to Gold Standard to solve financial crisis

[ReichGirl]

Arkady Dvorkevich, the Kremlin's chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.

Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.

http://www.telegraph.co.uk/finance/financetopics/g20-summit/5072484/Russia-backs-return-to-Gold-Standard-to-solve-financial-crisis.html


i have said this for years now.. but if we went on the gold standard the fed could not claim more debt then there was money in circulation, banks would have to have gold in the vault, if you went to the bank you should be able to trade in the $$ for an = amount of gold, it looks like the ruskies are taking there country back from the jewish criminals ;)

ReichGirl

[Psychonaut]

They can't do it. No nation has enough of a gold supply to switch back to a gold standard without completely overhauling their currency and cutting themselves off from the world economy. What I really wonder though, is if Russia has enough palladium to base their currency on. They've had the world's precious metals markets cornered or years with palladium.

[Æmeric]

Gold is currently trading at just under $1,000 a troy ounce. But it is probably undervalued even at that price & if the gold standard was restored, gold would be worth much more as it would actually have a use as money instead of just being a metallic commodity. Maybe $2,000 an ounce.

Befroe the rapid increase in the physical supply of US$ in the past year, there was approximately $750 billion in circulation & sitting in bank vaults. At $1,000 an ounce it would have taken 750 million ounce of gold to back the currency at 100%. At $2,000 it would have taken 375 million. The US gold reserves is about 260 million troy ounces. The difference between what the US owns & what would be needed would be made up buy issuing interest bearing gold bonds for privately held gold. The are over 4.5 billion troy ounces of gold in the world, that is enough to support the world economy.

Of course with the rapid increase in physical dollars the price of gold will rapidly increase but that does not change the fact that the US will need approximately 375-750 million punce of gold to go on the gold standard. A gold standard would mean a radical change in the way we conduct our finances. Trade deficits could no longer be maintained by increasing the (paper) money supply. An outflow of gold (as the result of continued trade deficits) would result in the contraction of the domestic economy. So long free trade.

[Barack Obama]

A return to the gold standard will never happen. Keynesian economics is here to stay. A central banking system ran by expert bureaucrats is the only way to run a modern economy.

[chap]

Governments could not be trusted to run pizza restaurants properly, what makes anyone think they can be trusted with money?

We will have viable currencies when the minting of money is in private hands. Gold, silver, palladiu, oil; all or none could serve as money in the free market, would be up to participants to decide.

[Barack Obama]

Governments could not be trusted to run pizza restaurants properly, what makes anyone think they can be trusted with money?


Governments are the only entities that can be trusted with monetary management. And I will prove that beyond any doubt over the next few years as the effect of my stimulus policies take effect & re-inflate the economy.