World Bank Chief Calls For Return To Gold Standard
Robert Zoellick looks to re-ignite the gold-backed currency debate with an editorial in the FT this morning:
The G20 must look beyond Bretton Woods II
Ahead of a G20 summit this week in Seoul, Zoellick wrote in Monday's Financial Times that an updated gold standard could contribute to retooling the world economy at a time of tensions over currencies and US monetary policy.
Zoellick said the world needed a new regime to succeed what he called the "Bretton Woods II" system of floating currencies, which has been in place since the fixed-rate currency system linked to gold broke down in 1971.
"Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today," Zoellick wrote in a commentary for the FT.
The new system "is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi (Chinese yuan) that moves towards internationalisation and then an open capital account," he said.
"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values," Zoellick added.
His comments came amid worries of a so-called "currency war", when countries jostle for trade advantage by massaging their exchange rates lower.
The United States has led accusations that China cheats in world trade by artificially weakening its currency.
But Washington also stands accused of tolerating a weak dollar, roiling emerging markets whose own currencies are rising strongly, hurting their export competitiveness.
The complaints have intensified since the Federal Reserve last week announced a 600-billion-dollar shot of monetary stimulus -- in effect printing money that other economies worry will flood their markets.
Zoellick also called on the Group of 20, whose leaders meet in the South Korean capital on Thursday and Friday, to forge structural reforms, including more domestic demand in China and more debt-reduction in the United States.
Major economies "should agree to forego currency intervention, except in rare circumstances agreed to by others", he added.
The G20 could work out tools to help emerging economies cope with the kinds of hot-money flows that are now driving up their currencies and creating fears of asset bubbles.
And the G20 should "support growth by focusing on supply-side bottlenecks in developing countries", such as infrastructure, agriculture and a lack of skilled labour, Zoellick said.
"Perhaps most importantly, this package could get governments ahead of problems instead of reacting to economic, political and social storms," the World Bank chief argued.
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Nov 8, 2010 at 3:23 PM
Reader Comments (11)
http://www.ft.com/cms/s/0/eda8f512-eaae-11df-b28d-00144feab49a.html#axzz14iqLHjoo
By Robert Zoellick
http://www.ft.com/cms/s/0/5bb39488-ea99-11df-b28d-00144feab49a.html#axzz14dKEeR16
Long before he helped set up the World Bank, John Maynard Keynes pronounced the gold standard “a barbarous relic”. Relics rarely cease to inspire devotion. Expect a revival in gold worship after Robert Zoellick, World Bank president, gave a nod in its direction.
http://dailybail.com/home/cftcs-chilton-sees-numerous-silver-manipulation-efforts.html
http://www.lewrockwell.com/blog/lewrw/archives/68705.html
Nothing is going to change until we change the structure and the handful of people that control things. Absolutely nothing. Anything short of this change is just a pipedream. People need to start realizing this. They'll toss us a few bones, but its back to the same old crap IMO.
War could have ended 1-2 years but Germans Printed Debt Free Currency and Tossed Rothschild Bankers out of Germany so they firebombed all Germans and never bombed factories to extend war 5 years to kill all Germans so no more "Banking Problem Children" left living.
Read Old book With The New Financial Way to rid parasite Interest Banking here:
http://www.filefactory.com/file/b422gc9/n/ndcic.pdf
Oh and they invented Interest banking 800 years ago in Italy and Arab Sharia Law forbids Interest Banking so we been shooting Arabs last 800 years too.
Oh and don't count on the Police or Homeland Security to help with this Mafia, as they are paid to protect the government from you after you see this next video showing CIA and Police bring Coke into the USA Cities:
http://www.filefactory.com/file/b42304b/n/crackthecia.wmv