Drudge reported late Sunday night that Robert Zoellick, President of the World Bank, suggested that world economies should consider adopting a modified Gold standard to guide future currency movements. Mr. Zoellick, a former US Treasury official, feels the dollar is no longer useful as the world’s only reserve currency.
Writing in the Financial Times, Robert Zoellick, the bank’s president since 2007, says a successor is needed to what he calls the “Bretton Woods II” system of floating currencies that has held since the Bretton Woods fixed exchange rate regime broke down in 1971.
Mr Zoellick calls for a system that “is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi that moves towards internationalization and then an open capital account”. He adds: “The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and currency movements”.
Fiat currencies always fail. Never has one lasted more than 150-200 years. When fiat crashes, Gold is always brought back into the equation to regain confidence and discipline in a system torn apart by politicians who only want to spend the taxpayer money so they can be re-elected. Fiat is nothing more than a Ponzi scheme and every Ponzi eventually gets exposed with their founders being marched off to prison. The year 2010 is nothing new that hasn’t happened many times before it. Gold on the other hand will be revalued upward to reflect the current amount needed to retire outstanding debt and allow future debt. Your guess is as good as mine how high that will be!