BREAKING: Russia backs return to Gold Standard

[deflateIT]

:eek: This made my day!

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.

Mr Dvorkevich said it was “logical” that the new currency should include the rouble and the yuan, adding that “we could also think about more effective use of gold in this system”.

The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.

It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and “Great Society” social spending forced President Richard Nixon to close the gold window in 1971.

http://www.infowars.com/russia-backs...ancial-crisis/

[D-Mack]

Re: BREAKING: Russia backs return to Gold Standard

That goes into the direction of Bretton Woods 1

A return to the Bretton Woods international gold standard is inevitable - Eric Janszen
http://itulip.com/forums/showthread.php?t=6458

[Guest]

Re: BREAKING: Russia backs return to Gold Standard

What makes no sense, is why on earth China and Russia would openly endorse this, when gold represents 3-5% of their reserves while many of the larger western (European) nations have gold reserves more like 35%-60% of gold? Also, US is the largest owner of gold in the world. Why would China / Russia openly endorse gold as a new monetary anchor when their huge rival the US owns by far the largest world position of gold?

[Chomsky]

Re: BREAKING: Russia backs return to Gold Standard

What makes no sense, is why on earth China and Russia would openly endorse this, when gold represents 3-5% of their reserves while many of the larger western (European) nations have gold reserves more like 35%-60% of gold? Also, US is the largest owner of gold in the world. Why would China / Russia openly endorse gold as a new monetary anchor when their huge rival the US owns by far the largest world position of gold?

Because gold would merely be but one among many commodities in the basket?

[jtabeb]

Re: BREAKING: Russia backs return to Gold Standard

What makes no sense, is why on earth China and Russia would openly endorse this, when gold represents 3-5% of their reserves while many of the larger western (European) nations have gold reserves more like 35%-60% of gold? Also, US is the largest owner of gold in the world. Why would China / Russia openly endorse gold as a new monetary anchor when their huge rival the US owns by far the largest world position of gold?

If you want to GET gold, it make sense to include it as a component of the SDR.

China wants gold for trinkets, Russia wants gold for energy (oil and nat gas).

It TOTALLY makes sense in that they want to get paid in something they ACTUALLY want to receive in exchange for their goods and services.

It also makes sense since the customers (EU and US) have A LOT of gold, so
it looks to me like they are acting in their financial interests by doing this.

Which would you rather get paid in Luke, Dollars, Euros, or Gold?

(I have my own answer, of course)

[Guest]

Re: BREAKING: Russia backs return to Gold Standard

Which would you rather get paid in Luke, Dollars, Euros, or Gold?

Uhm. Erm. ... (thinks real hard) Better pay me in gold then. :rolleyes:

[Mega]

Re: BREAKING: Russia backs return to Gold Standard

Everyone KNOWS Gold...........Money for thousands of years......They trust it. Sure J P Morgan can short the ass out of it on the Comex, but once "Everyone" is on board Am sure a "Raid" can be sorted........& if "They" don't get the message aonther & another.........till "They" DO get the message!

Mike

[c1ue]

Re: BREAKING: Russia backs return to Gold Standard

The issue isn't reserves. The issue is debt.

A gold backed currency means all the debt is fixed in value vs. a physical commodity. Much harder to inflate it away.

[nero3]

Re: BREAKING: Russia backs return to Gold Standard

China produce, so I think they will gain most from a gold standard, as the gold will tend to gravitate towards producers. Russia have oil, so they will benefit as well. The only country that don't seems to benefit is the US as they would run out of reserves. Had we been on a gold standard today with todays gold price, the US would run out of reserves very quick.

[WildspitzE]

Re: BREAKING: Russia backs return to Gold Standard

... as the gold will tend to gravitate towards producers....

...and then who would be in a position to issue the new fiat currency? the temptation is too great for certain socio-political constructs. ;)

[*T*]

Re: BREAKING: Russia backs return to Gold Standard

What makes no sense, is why on earth China and Russia would openly endorse this, when gold represents 3-5% of their reserves while many of the larger western (European) nations have gold reserves more like 35%-60% of gold? Also, US is the largest owner of gold in the world. Why would China / Russia openly endorse gold as a new monetary anchor when their huge rival the US owns by far the largest world position of gold?

They have a lot under the ground, also.