Bastian Hayek Posted March 31, 2009 Report Share Posted March 31, 2009 http://www.telegraph.co.uk/finance/finance...ial-crisis.html According to this Telegraph article Russia - as a country rich in gold - advocates a partial return to the international Gold standard. Now that will not make them a capitalist nation, but maybe it will start a discussion about gold and money that is more mainstream. Quote Link to comment Share on other sites More sharing options...
Jake_Ellison Posted March 31, 2009 Report Share Posted March 31, 2009 The headline says gold standard, but the article (closer to reality) says that the Russians and the Chinese are arguing for the same global currency the Chinese brought up before (the one Keynes proposed in the 40s). They want this currency to be controlled by the IMF and tied to major currencies, including the ruble, yuan and "maybe even gold". Plus, if the Russians wanted to be on the gold standard, they could go on it starting tomorrow. They wouldn't need us to agree with them and hand over control over our money to the IMF. The fact is the Russian and Chinese tyrants want no such thing (a gold standard would mean that they would be relinquishing some control over their citizens), they're just angling for influence in this game they see as a source of more power. Quote Link to comment Share on other sites More sharing options...
softwareNerd Posted March 31, 2009 Report Share Posted March 31, 2009 Plus, if the Russians wanted to be on the gold standard, they could go on it starting tomorrow. They wouldn't need us to agree with them ...This is crucial. What they need from the U.S., Europe and a few others (like Japan) is trustworthiness. For all their faults, the governments of western democracies are seen as significantly more reliable than the governments of Russia, China, Saudi Arabia or Venezuela. Even though Roosevelt expropriated gold and even though Nixon walked away from the international gold-exchange standard, people see that very differently than the way they see things that Putin or Chavez would do. It's the difference between trusting a person who will try to meet their obligations versus trusting someone who has little intention of doing so. Russia chould simply go to a gold standard, China to a commodity-basket standard, and the oil states can even try an oil-standard. The US gets an advantage because its currency is the world-reserve, However, I'd rather see this disappear. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.