It’s sort of a modified, limited hang-out, but Russia is promoting at least a partial return to the gold standard for international currencies.
“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.”
Too funny: Having money backed by real value is “radical.” No, it isn’t, it’s moral… but you can be sure the Russians and Chinese are not proposing this for positive moral ends, rather they have designs on taking advantage of the US mountain of debt that Obi-One has buried us under to weaken us economically. Still, I’m glad they brought this up, because it will strike fear into a lot of arrogant hearts, or it ought to.
If some countries return to the gold standard, international financiers and financial institutions will flock to those currencies and the US dollar and other unbacked fiat currencies will plummet into worthlessness. If that doesn’t worry you, it should. The US, GB, Australia and other western nations are in no position to return to the gold standard: Too much money in circulation and nowhere near enough gold to hitch to it.
Still, at some point this is going to happen, even if it takes a total global financial meltdown to achieve it… and it just might.
The choices will come down to this…