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gold has never actually been proven inferior to fiat.
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What does one call it when 'Good as gold' ETF's are 'trading' more gold than actually exists? (Sounds like fiat to me.)
And then from what I've been reading the 'BRICs' have NOT been talking about 'gold based currency' - nor are they talking about a 'new currency'. No new currency as that would require a new 'central bank' and that would mean surrendering some of their sovereignty to said bank.
What BRIC's seems to be talking about is moving to 'other currencies' - as in Brazil and China trading in each others currencies . . . Russian oil selling in rubles . . .
And yes, more than a few countries would love to see the end of the 'dollar dominance' . . . But the problem remains - who's currency is liquid enough and trustworthy enough for the job.
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He writes that “this rather upside-down theory appealed to politicians” because “it gave them carte blanche to spend, all with money created out of thin air by the central bank.”
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And right here the author points out one of the two reasons no polotician is going to go for a gold standard.
1.) Under a gold standard inflating fiat currency will get a LOT harder (for them).
2.) Under a gold standard the shortage or oversupply will wreak more havoc upon the economies than 'they' can stomach.
And do not forget that joe biden is wrecking the Dollar and the American economy . . . So, once again, I ask - "Which currency is liquid enough and trustworthy enough to do the job?"
Zim.
Mad Poet Strikes Again. |
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