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World Bank Head Is Back, Says Don't Ignore Gold Which Is Now "The Elephant In The Room"

Tyler Durden's picture





 

After making some very unwelcome advances calling for a return to the gold reserve, World Bank head Robert Zoellick is again back, and refuses to shut up. The FT reports that earlier Zoellick said
the increasing use of gold as a monetary asset was an “elephant in the room”
that was being ignored by policymakers in the debate over how to correct global
trade and fiscal imbalances. It gets worse: during a conference presentation, Zoellick said the price of gold indicated that the world was heading towards a new monetary system in which the US dollar would be only one of a number of reserve currencies with flexible exchange rates. As we highlighted yesterday, a variety of factors have already conspired to make it appears that not the dollar, but the Chinese currency is increasingly starting to act as a reserve currency on its own merit.

More comments from Zoellick:

“Gold is now being viewed as an alternative monetary asset. This is not the same as a gold standard,” said Mr Zoellick. “Gold has become a reference point because holders of money see weak or uncertain growth prospects in all currencies other than the renminbi, and the renminbi is not free for exchange.

“So, in relative terms, gold is appealing to people who ask where should I put my money. It is a hedge against uncertainty.”

Mr Zoellick said the use of gold indicated that the largest economies “need pro-growth policies, structural reforms, open trade and an anti-protectionist agenda”. He said that would build confidence in private sector development.

This means that no matter how high the margin requirements on precious metals, the inevitable move in the price of gold and silver is just one, as there is no way that the FX tension can ever be resolved now that the only possible outcome for the global economy is a race to deflate. The World Bank head agrees:

He said there was no “silver bullet” that would resolve the world’s problems with trade imbalances and capital flows, however, suggesting that achieving a revised international trading and monetary system would require a process of “relentless incrementalism”.

Yet in an attempt to not come off as alarmist, Zoellick toned down previous comments from Brazil's Mantega (that's the guy with the hot daughter), that a full blown currency war has broken out.

“I don’t believe we are going to be in a currency war; I think this is an overstated description,” he said. “I have had to deal with real wars in my career, so I know what they are and I’m sensitive to the use of the term.

“[But] I do think there are tensions in the system, and if not properly managed those tensions risk an increase in protectionism.”

We are all ears to understand just what alternative to protectionism and FX wars exists for the world... and just what the alternative case for gold as a pseudo gold standard is.

 


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Wed, 11/10/2010 - 10:20 | Link to Comment DollarDive
DollarDive's picture

The niece is nice !

Wed, 11/10/2010 - 11:07 | Link to Comment Bananamerican
Bananamerican's picture

YUAN Bitches??

niece is nice, wide and milk-able.... i dub her "Daisy"

Wed, 11/10/2010 - 11:26 | Link to Comment Huxley Ann
Huxley Ann's picture

I wouldn't mind using the Yuan instead of the US$ or Mexican$peso. Both are crap currencies and I've made money on a Yuan ETF (though I've since moved it into silver.) I just have the cash I earn weekly in fiat and all my savings (since I started walking to Banamex to buy cheap Ag coins with my allowance) are in gold and silver. But why not switch to the Yuan?

As an aside, my favorite fiction genre is SciFi and two of the all time great SciFi books ("Man in the High Tower" by P.K.Dick and "China Mountain Zhang by Megan McHugh) both deal with the USA being taken over by the Chinese. Neither mentioned the Yuan, thouigh.

Wed, 11/10/2010 - 10:20 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

The amount of damage that the United Auto Workers have done to the world economy is truly staggering.  The more I watch Glenn Beck, the more sense this all makes. 

 

Wed, 11/10/2010 - 10:23 | Link to Comment sourgrapesson
sourgrapesson's picture

I'd rather have my fingernails pulled out one by one then suffer through Becks two bit bad acting.

Wed, 11/10/2010 - 12:13 | Link to Comment LowProfile
LowProfile's picture

Sucks for you, because aside from not revealing the influence of corporations in our government (TTBOMK), he's spot on.

Wed, 11/10/2010 - 10:24 | Link to Comment Tortfeasor
Tortfeasor's picture

Unrelated personal vendetta is unrelated.

Wed, 11/10/2010 - 10:43 | Link to Comment RockyRacoon
RockyRacoon's picture

That's tautological, no, actually it's redundant.

Correct nonetheless.

Wed, 11/10/2010 - 10:30 | Link to Comment tmosley
tmosley's picture

This "Hate of the Week" brought to you by the Democratic National Committee. 

Be sure to bring up how much you hate him, preferably using dumbshit satire, in any and all conversations you see, relevant or not.

Wed, 11/10/2010 - 11:01 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

It's absolutely relevant.  Last week, Glenn Beck - using his famous connect-the-dot game -blamed the American unions for QE2. That segment was posted on ZH. 

This article is about the various FX wars and the call to return to the gold standard rather than debasing our currency with policies like QE2.

Thus, by adding one more dot, one can easily assume that the American Auto Workers are to blame for the FX wars and the parabolic rise of gold.  

It's perfectly relevant, and I'm actually considerate enough to use the same connect-the-dots logic that Beck employs so that all the Beck followers can easily understand without having to activate their brain. You should thank me. 

Since I'm so god-damn considerate, here's a Glenn Beck flow chart for you:

Stupid, selfish unions --> QE2 --> destruction of the world. 

 

Wed, 11/10/2010 - 11:10 | Link to Comment Bananamerican
Bananamerican's picture

lol

"why do we scream at each other? This is what it sounds like when Glenn cries"

Wed, 11/10/2010 - 12:32 | Link to Comment Ragnarok
Ragnarok's picture

If anyone wants to watch what glenn actually says, commercial free full episodes can be found at:

 

The Daily Beck

http://www.watchglennbeck.com/

Wed, 11/10/2010 - 10:44 | Link to Comment RockyRacoon
RockyRacoon's picture

The more I watch Glenn Beck, the more nonsense this all makes.

There.  That's better.

Wed, 11/10/2010 - 10:21 | Link to Comment johngaltfla
johngaltfla's picture

Shouldn't that read a "herd" of elephants.

Wed, 11/10/2010 - 10:34 | Link to Comment Abigail Adams
Abigail Adams's picture

Right? They'll hafta start giving those Ringling Bros. elephant trainers huge bankster bonuses, just to contain the stampedes.

Wed, 11/10/2010 - 10:47 | Link to Comment RockyRacoon
RockyRacoon's picture

Reminds me of the concept of the rope that tethers the elephant to the stake.  It's flimsy but the elephant doesn't know he can simply break it.  The rope is the chimerical dollar.

Wed, 11/10/2010 - 12:15 | Link to Comment A Nanny Moose
A Nanny Moose's picture

+1

Wed, 11/10/2010 - 10:53 | Link to Comment the not so migh...
the not so mighty maximiza's picture

herd of elephents or herd of donkeys same shit.

Wed, 11/10/2010 - 11:12 | Link to Comment Bananamerican
Bananamerican's picture

different feed stock/same effect

Wed, 11/10/2010 - 11:56 | Link to Comment quasimodo
quasimodo's picture

ya, um, you ever seen an elephant shit? It's like a small earthquake.

Wed, 11/10/2010 - 10:21 | Link to Comment Goldenballs
Goldenballs's picture

As far as I am concerned the higher Gold Price shows we are in an unofficial Gold Standard,people trust Gold more than official Fiat.However its put over thats the situation.

Wed, 11/10/2010 - 10:49 | Link to Comment RockyRacoon
RockyRacoon's picture

The evolution of the old gold money standards was slow and fraught with peril.  The new evolution to a gold standard appears to be just as disorderly.  This is how "markets" develop.  Now if we could just convince governments to leave us the hell alone!

Wed, 11/10/2010 - 10:23 | Link to Comment Mediocritas
Mediocritas's picture

So the IMF is finally going to get its day in the sun and do what it was always supposed to do? Expand the SDR to include the Yuan (plus other currencies) and make it the global trading currency.

If that happens, Bernanke better be Johnny-on-the-spot with some inflation dampeners.

Wed, 11/10/2010 - 10:25 | Link to Comment Bob
Bob's picture

Dollar already dead, obituary to follow: 

http://www.youtube.com/watch?v=8P1fihT5B7o&feature=player_embedded

 

Wed, 11/10/2010 - 10:26 | Link to Comment Tortfeasor
Tortfeasor's picture

It's the elephant in the room that they want to shoot down, Ted Roosevelt style.

Wed, 11/10/2010 - 10:26 | Link to Comment Ragnarok
Ragnarok's picture

Freegold?

 

- Two tier currency system dependent on time for the deployment of capital (i.e. Gold to save, fiat to spend).

- End of fractional reserve banking

Wed, 11/10/2010 - 10:27 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Very suspicious of World Bankers. The WB has historically been a tool of the US and the Z man has a long history of being a beltline power elite. Methinks he speaks with forked tongue.

Wed, 11/10/2010 - 10:28 | Link to Comment TWORIVER
TWORIVER's picture

Silver headed to 25 today, Gold to 1370.

Wed, 11/10/2010 - 11:06 | Link to Comment Turd Ferguson
Turd Ferguson's picture

don't hold your breath.

More likely, consolidation with the new "reality" of higher margin requirements. Sideways between 1390 and 1405 until late morning tomorrow. PMs then begin to breakout and head higher in advance of $10B POMO on Friday.

If I had to guess right now, on Wednesday morning, Gold finishes the week around 1415-1420, silver maybe 28.50-29. Another solid, up week. Volatile but solid.

Next week should be a lot of fun with new highs in both as we get $33B in POMO by Thursday. Gold to 1450 and silver to 30, at least.

Again, add that up. That's $43,000,000,000 in fucking POMO by late morning next Thursday. $43B!! Now, I suppose all kinds of crap can happen all over the world that would cause panic and preclude dollar-denominated asset rallies but, you have to admit, the apocalypse is not likely to happen before next Thursday. Buy everything. Gold, silver, crude, wheat, AAPL, NFLX, AMZN, whatever. That thundering you hear in the distance is the sound of 43 billion fucking dollars coming over the horizon.

Wed, 11/10/2010 - 11:49 | Link to Comment AGoldhamster
AGoldhamster's picture

Pls where did you get that numbers from? (Usually they are here - not?: http://www.ny.frb.org/markets/pomo/display/index.cfm?showmore=1&opertype=orig)

Wed, 11/10/2010 - 11:56 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Helpfully provided yesterday by your friends here at ZH:

http://www.zerohedge.com/article/advance-look-upcoming-pomo-schedule-130...

Admittedly, these are projections. The actual announcement is later today. 

Btw, there should be a lot of support for gold near yesterday's lows, between 1380-85.

Wed, 11/10/2010 - 11:58 | Link to Comment AGoldhamster
AGoldhamster's picture

this the latest schedule - in the meantime overdue or course?

http://www.ny.frb.org/markets/tot_operation_schedule.html

ok ... last reply clarified it - projections, thx anyway!

Wed, 11/10/2010 - 11:04 | Link to Comment Kina
Kina's picture

A representative of JPM giving advanced notice of today's manipulation?

Wed, 11/10/2010 - 10:29 | Link to Comment Arius
Arius's picture

Viva Mr. Z !!!

you bet against him at your own peril...

Wed, 12/08/2010 - 00:47 | Link to Comment Z
Z's picture

.

Wed, 11/10/2010 - 10:29 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

“I don’t believe we are going to be in a currency war; I think this is an overstated description,” he said. “I have had to deal with real wars in my career, so I know what they are and I’m sensitive to the use of the term.

Well, I've had my belly laugh this morning. Were those real shooting wars you were involved in?

It's amazing how arrogant these ass hats are when all is going well with their “relentless incrementalism” when it comes to the slow but steady debasement of currencies. But God forbid we don't accept your word that your currency is "as good as Gold" because them there are fighting words.

FU AssHat

Wed, 11/10/2010 - 10:33 | Link to Comment Charley
Charley's picture

The last big currency war was in the 60s -- the US won simply by reneging on its obligation to redeem in gold.

Wed, 11/10/2010 - 10:40 | Link to Comment ZackAttack
ZackAttack's picture

Well, from my friends in Sao Paolo, I am given to understand that there are sometimes shootouts with the bodyguards when Brazilian kidnappers snatch a wealthy professional off the downtown streets in midday to ransom. So I suppose his shooting war could refer to how he Brazil treats its poor. There's always that interpretation.  

Wed, 11/10/2010 - 12:19 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Do food fights in the cafeteria count? It's all fun n' games till someone loses an eye.

Wed, 11/10/2010 - 10:31 | Link to Comment Steak
Steak's picture

random tunes on a random day

playlist throwback

game recognize game (a playlist): http://www.youtube.com/view_play_list?p=33135E8E214454B3

Wed, 11/10/2010 - 10:31 | Link to Comment Charley
Charley's picture

"Mr Zoellick said the use of gold indicated that the largest economies 'need pro-growth policies, structural reforms, open trade and an anti-protectionist agenda'. He said that would build confidence in private sector development. This means that no matter how high the margin requirements on precious metals, the inevitable move in the price of gold and silver is just one, as there is no way that the FX tension can ever be resolved now that the only possible outcome for the global economy is a race to deflate."

His words have the exact opposite meaning. "Pro-growth" mean dollar devaluation. "Open trade" means a growing US trade deficit. "Anti-protectionism" mean a shift of US industry to less developed regions of the world market. "Structural reform" means removing US treasuries as a savings option.

This is not a suggestion for the use of gold as money; it is a prescription to prevent gold from emerging as an alternative money. Zoelick is stating that the US must continue to devalue its currency, increase its role as the absorber of global surpluses, move its industry offshore, and prevent US public debt from being a safe haven for global surpluses.

There will be no currency war, not because Brazil doesn't want one, but because it has no weapons to fight it.

Come on people, the last time this happened the US just stop paying its debts in gold. Everyone grumbled, but no one could do a thing about it. It will be the same here as well. Washington has declared war on Bretton Woods II.

Wed, 11/10/2010 - 10:37 | Link to Comment Charley
Charley's picture

The very things that make gold a good play, makes it impossible for any nation to allow it the opportunity to become money. Gold immediately places a zero interest rate floor under the global economy. Without negative interest rates no nation has the ability to pursure montary and fiscal policy.

All fiat currency is is money with a negative interest rate -- to discourage saving and force holders of money to find investments!

Wed, 11/10/2010 - 10:58 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Charley,
Thanks for both the thought-provoking post above.

ORI

Wed, 11/10/2010 - 10:59 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Charley,
Thanks for both the thought-provoking posts above.

ORI

Wed, 11/10/2010 - 11:37 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Question Charley: Gold exists, gold has historically been used as money, now that fiat currencies are being printed in a race for market share of export markets (as stated by Obama that we want to double exports in five years) and people/banks/soverigns are exchanging their fiat currency for gold; what do you propose the 'leaders' of the world do about it?...by 'do about it' I mean the fact that gold exists and many are now using it for a store of value?...Would you confiscate all of it and shoot it into space toward the sun? What is your solution? 

Thu, 11/11/2010 - 10:02 | Link to Comment Charley
Charley's picture

The fact that gold is the preeminent money makes it a deadly threat to every national government issued fiat, not just the United States. Gold allows society to resist the predations of government on productive activity - to siphon off that activity into purely unproductive pursuits.

With gold money, India has no nuclear arsenal -- neither does the Russia or China; the US could not maintain its empire. To imagine India, China, or Brazil would want gold money when it threatens fundamental domestic national policy flexibility is to suffer delusions. The complaint from these nations is not that gold should be money, but that the US should cease doing to them what they are already doing to their own citizens!

But, they will not have their way. Unless China introduces gold money to its citizens, it cannot have gold money as the world reserve currency. It can rob its people through state issued fiat only so long as the US can rob it through the dollar. Further, it will have to dollarize its economy for the very same reason that its own citizens must accept the yuan as payment for goods.

I do not think this crisis is over until every nation on the planet dollarizes its economy. Global prices are denominated in dollars, which means, ultimately, only Washington can pursue sovereign economic policy. Dollarizing the Chinese economy is the only way China can maintain its exports surplus without crippling currency and capital controls or hyperinflation.

Wed, 11/10/2010 - 11:13 | Link to Comment MsCreant
MsCreant's picture

it is a prescription to prevent gold from emerging as an alternative money.

I find this compelling. I felt it but could not say it. The two announcements so close together. "Don't ignore this." 

Desperation.

For all you conspiracy theorists out there, there are many competing conspiracies afoot. None of them are in control of this. Smell it. They are scared. They may get the outcome they want, but the future is wide open. They are afraid. 

That makes me feel pumped, folks. Something can be done about this shit. It may be as simple as going to a PM based system. Make war on them by handing the system back it's stinking, feces slimed toilet paper, and converting it to pms and other commodities that you have in your possession 

We are making war on these bastards by checking out of their bullshit system. I am waiting for my coin dealer to open. Think I'm gonna go all in, not as a trade, a little bit as insurance, but mostly, mostly, as an act of civil war. War against the crooks I was conditioned to trust; war against the media who would lie to me hourly and distract me with trash entertainment; war against a financial system that I was born into and given no opportunity to decide if I wanted to participate in it, or not, that was designed to help the government steal from me via inflation; war against immoral wars raging over seas; war against a materialistic culture that encourages me to mindlessly consume. I'm taking my stores of value out of the system and I am going, fucking, home. 

Gold is WAR BITCHEZ. Dare I whisper, it may well be the road to freedom.

Wed, 11/10/2010 - 12:47 | Link to Comment Treason Season
Treason Season's picture

You go golden girl!

Wed, 11/10/2010 - 13:33 | Link to Comment Ragnarok
Ragnarok's picture

Nice.

Wed, 11/10/2010 - 13:55 | Link to Comment Tortfeasor
Tortfeasor's picture

Best comment I've read in weeks, anywhere.  Gold is war, indeed, the new battlecry of the enlightened.

Wed, 11/10/2010 - 15:03 | Link to Comment lawrence1
lawrence1's picture

Bravo!!  It is a fucking war and the middle class is being destroyed without a shot being fired (to paraphrase Gregg Palast) and pms are weapons.Lets get mad and get even.

Wed, 11/10/2010 - 12:30 | Link to Comment A Nanny Moose
A Nanny Moose's picture

 

There will be no currency war, not because Brazil doesn't want one, but because it has no weapons to fight it.

Indeed. No "weather balloons", and no submarines with which to launch them 35 miles from our coast.

Wed, 11/10/2010 - 10:34 | Link to Comment Oh regional Indian
Oh regional Indian's picture

To me, this has to be the biggest red flag, not a healthy sign.

If I had a playbook, I'd probably say the same thing right about now.

Not healthy to imagine, for one minute, that the Chinese govt. suddenly wanted to "look after the interests" of their peasantry and wants them all to get rich from holding gold.

I smell a ded herring!

ORI

http://aadivaahan.wordpress.com

Wed, 11/10/2010 - 10:36 | Link to Comment Haywood Jablowme
Haywood Jablowme's picture

Just more proof in my eyes that these banksters have been long gold for some time now.  Everything going exactly as planned...

 

 

Wed, 11/10/2010 - 21:52 | Link to Comment CitizenPete
CitizenPete's picture

Hmmm. I wish people wouldn't say that.  I want someone to carefully explain that it isn't so.  Are we falling into a clever trap?

Wed, 11/10/2010 - 10:40 | Link to Comment pazmaker
pazmaker's picture

But but but... the master Roubini says a gold standard wont work!

Wed, 11/10/2010 - 10:44 | Link to Comment Charley
Charley's picture

What he meant to say: If countries return to the gold standard, YOU won't work. Work becomes obsolete.

Wed, 11/10/2010 - 10:53 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

They would need to make many changes ...

Current Exchange Rates
After the Bretton Woods system broke down, the world finally accepted the use of floating foreign exchange rates during the Jamaica agreement of 1976. This meant that the use of the gold standard would be permanently abolished. However, this is not to say that governments adopted a pure free-floating exchange rate system. Most governments employ one of the following three exchange rate systems that are still used today:

  1. Dollarization;
  2. Pegged rate; and
  3. Managed floating rate.

Dollarization
This event occurs when a country decides not to issue its own currency and adopts a foreign currency as its national currency. Although dollarization usually enables a country to be seen as a more stable place for investment, the drawback is that the country’s central bank can no longer print money or make any sort of monetary policy. An example of dollarization is El Salvador's use of the U.S. dollar. (To read more, see Dollarization Explained.)

Pegged Rates
Pegging occurs when one country directly fixes its exchange rate to a foreign currency so that the country will have somewhat more stability than a normal float. More specifically, pegging allows a country’s currency to be exchanged at a fixed rate with a single or a specific basket of foreign currencies. The currency will only fluctuate when the pegged currencies change.

For example, China pegged its yuan to the U.S. dollar at a rate of 8.28 yuan to US$1, between 1997 and July 21, 2005. The downside to pegging would be that a currency’s value is at the mercy of the pegged currency’s economic situation. For example, if the U.S. dollar appreciates substantially against all other currencies, the yuan would also appreciate, which may not be what the Chinese central bank wants.

Managed Floating Rates
This type of system is created when a currency’s exchange rate is allowed to freely change in value subject to the market forces of supply and demand. However, the government or central bank may intervene to stabilize extreme fluctuations in exchange rates. For example, if a country’s currency is depreciating far beyond an acceptable level, the government can raise short-term interest rates. Raising rates should cause the currency to appreciate slightly; but understand that this is a very simplified example. Central banks typically employ a number of tools to manage currency.

http://www.investopedia.com/university/forexmarket/forex4.asp

Wed, 11/10/2010 - 21:22 | Link to Comment CitizenPete
CitizenPete's picture

Thank you for that post.

Wed, 11/10/2010 - 10:50 | Link to Comment Fanatic
Fanatic's picture

http://www.youtube.com/watch?v=Nh01Q6uLgs0

"Zoellick: Gold is 'Elephant in Room'"
Wed, 11/10/2010 - 10:55 | Link to Comment snowball777
snowball777's picture

Funny how you'll buy into what any obvious government tool says if it agrees with your preconceived prescription for the problem at hand, isn't it?

In a world where private credit creation dwarfs money creation by central banks by an order of magnitude, how is a fucking gold standard ("backed-by", not specie mind you) supposed to be more than a fart in the wind?

The word for today is 'endogenous'.

Wed, 11/10/2010 - 11:53 | Link to Comment Rylie
Rylie's picture

it's called "Lessor Magic" the elite will tell you want they are going to do before they do it. There are lots of examples of this just look for them.

Wed, 11/10/2010 - 11:06 | Link to Comment Kina
Kina's picture

The only way to stop the manipulation is if the regulator is sued. For the corrupt banks fine are just the cost of doing business.

Wed, 11/10/2010 - 11:12 | Link to Comment nedwardkelly
nedwardkelly's picture

How can you say the chinese currency is actign as a reserve currency, as opposed to the USD, when it's pegged to the USD?

Wed, 11/10/2010 - 11:17 | Link to Comment Urban Roman
Urban Roman's picture

Tungsten!

In World Bank, bitchez find you!

Wed, 11/10/2010 - 11:46 | Link to Comment Misthos
Misthos's picture

Here's the issue with a multi-currency SDR "basket" that I covered on my blog:

We won't get to an SDR basket of currencies scheme.  What critics of a gold standard don't understand is the disproportionate rise of credit in the system.  Especially when a good deal of the system involves leveraged speculation as a means of attaining or creating "wealth."  It becomes, as Nicole Foss puts it, a Ponzi System that is inherently "self limiting."  The issue is not about power-sharing a reserve currency. The issue is the type of currency we have today - the debt based money we use.

And when we left the gold standard, balance sheets of sovereigns no longer had an asset - gold - but a liability masking as an asset - a trading partner's sovereign debt.  The entire system became almost 100% debt based.  I say almost because central banks and treasuries are not that stupid.  They still hold gold.

The monetary transition will not be orderly.  It will be chaotic, and gold will be used, not as a primary choice, but by default, when all paper becomes suspect.

These guys are talking about "sharing" a basket of currencies through the SDR to calm China down, so China benefits from having its currency as an accepted reserve currency - but what they forget is that these very same currencies are imploding!

 

It's madness.

http://fiatcollapse.blogspot.com/2010/11/gold-standard-debate-unleashed.html

http://fiatcollapse.blogspot.com/

Wed, 11/10/2010 - 12:17 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

+1

 

 

Wed, 11/10/2010 - 11:53 | Link to Comment desgust
desgust's picture

Only he doesn't call it free floating gold standard.

That's Freegold, guys!

Go to FOFOA and squeeze your brains!

Wed, 11/10/2010 - 12:19 | Link to Comment LowProfile
LowProfile's picture

+10^10

Finally...

Well, actually it's going to take a couple years, but still...

Wed, 11/10/2010 - 12:22 | Link to Comment gwar5
gwar5's picture

So Zoellick was for it, before he was against it, before he is for it again?

Obviously, gold makes all of them nervous. No wonder the price is jumpy.

I think what they are all really saying regarding gold is: BUY! BUY! BUY!

 

Wed, 11/10/2010 - 21:22 | Link to Comment Buck Johnson
Buck Johnson's picture

Or what could happen is that for their to be monetary transactions internationally, business and govt. will use a currency not necessarily based on gold by itself but silver, copper, whatever bunch of resources weighted.  And internally of each country like the US they will still use and get paid in dollars, even though it will be inflationary.  They may even make it illegal or real hard to obtain the new international money unless your a trader or country or bank.

Do NOT follow this link or you will be banned from the site!