The planet needs competition between invoicing currencies with free-floating gold reserves,
not co-ordination of intervention currencies between monetary bureaucrats.

No, Madame Christine Lagarde, French finance minister,
No, Mr Dai Bingguo, Chinese state councillor,
over there at the Group of Eight (G8) plus something summit in Italy,

The planet does not need a better system for reserve currency issuance and regulation
nor does the planet need currency issuing bureaucrats refraining from competitive devaluations.

The planet needs competition between invoicing currencies with free-floating gold reserves (1)  not co-ordination of intervention currencies between monetary bureaucrats.

Gresham’s law (”bad money runs out good money”) is only applicable when bureaucrats intervene to debase currency.

In a world with competition between currencies with free-floating gold reserves, devaluation is not an issue.

Ivo Cerckel
honestmoney@maktoob.com
https://twitter.com/ivocerckel

(1)
As oil is the only commodity large enough for gold to hide in, gold is hiding there.
Gold is wealth.
Wealth is not money. One does not give wealth away. One saves wealth.
Wealth backs, gives value to, money.

Ze verstaan dat allemaal wel zenne,…maar ze hebben niet graag dat goud hen zal gaan dicteren. Daar zit de knoop…
(They get it, but they don’t want to be bound by gold, they don’t want gold to be their Master, they want themselves to be the Masters. That’s the point.)