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Re: The Gold Standard 

By: Zimbler0 in 6TH POPE | Recommend this post (2)
Sun, 20 Aug 23 11:53 PM | 45 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 45157 of 58582
(This msg. is a reply to 45137 by Decomposed)
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Decomposed > I gotta figure that if the Ukraine war ever ends, Russia is going to pose the same threat.


I believe I've said this before . . .
China is the biggest threat. And I'm certain that they'd love to see the Yuan become the worlds 'reserve currency'.

Russia? Other than trying to force folks to buy their oil with rubles . . . I just don't see Russia having a big enough economy or being trustworthy enough to become the worlds reserve currency.

Now we have biden doing everything in his power to reduce these United States to a third world dictatorship. I can see the U.S. losing its status as the worlds reserve currency for that reason alone.

Will the world trust China enough to crown the Yuan as the reserve currency?

Or perhaps the Euro might get the nod?

Or will 'somebody' actually make a 'gold based currency' that will work?

Zim.




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The above is a reply to the following message:
Re: The Gold Standard
By: Decomposed in 6TH POPE
Sun, 20 Aug 23 2:56 AM 		Msg. 45137 of 58582

Zimbler0:

Re: “But, what was to keep enterprising foreigners from redeeming dollars for gold at $35 then selling the gold for more?”Nothing except their lack of U.S. dollars. Following World War II, the world was extremely poor and had no money with which to buy back gold from the U.S..

But by the 1960s, Europe was quickly recovering and one country, France, had begun doing exactly what you said. They recognized that the U.S. was overextended and had begun 'cashing in' dollars for gold. Presidents Johnson and Nixon realized that the U.S. would soon deplete its gold stockpile if it continued honoring its obligation.

It was Nixon's Secretary of State Henry Kissinger who came up with the somewhat ingenious "solution" by breaking the connection between the dollar and gold and replacing it with the petrodollar we have today. So long as the world's bourses force countries to hold trillions of American dollars to conduct oil transactions, the unbacked dollar would continue to hold special status around the globe.

That's what we did, and it sustained the country for another fifty years. But... should that situation ever change... we will be in a drastic situation. Some speculate that Saddam Hussein's 2000 insistence on selling Iraqi oil for euros is the real reason we targeted him. He represented an immediate, dire threat to our currency.

I gotta figure that if the Ukraine war ever ends, Russia is going to pose the same threat.

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