free-floating gold reserves – not regulation
Posted by Ivo Cerckel on July 10th, 2009
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.)
No related posts.
July 11th, 2009 at 07:21
Gold has not been democratically elected.
That’s why the FT Lex-column does not like it.
But there are reasons beyond finance why the dollar is the world’s reserve currency. The US remains the dominant global superpower, with a history of political stability. Would central banks ever trust most of their funds to a non-democracy, given how such states often end?
(China and the US dollar
Published: July 10 2009 09:49 | Last updated: July 10 2009 20:47
http://www.ft.com/cms/s/2/9a3da184-6d2d-11de-9032-00144feabdc0.html?ftcamp=rss
July 11th, 2009 at 08:12
Medvedev SAYS he still doesn’t get it.
Medvedev sees single currency dream in G8 coin gift
AFP Jul 10 01:55 PM US/Eastern
http://www.breitbart.com:80/article.php?id=CNG.4eb2c06b46ea42dece225df0a3ec3799.641&show_article=1
SNIP
Even if Russia’s call for a global currency failed to gain much traction at a G8 summit, President Dmitry Medvedev took home a coin meant to symbolize that the dream may one day come true.
The Russian leader proudly displayed the coin, which bears the English words “United Future World Currency”, to journalists after the summit wrapped up in the quake-hit Italian town of L’Aquila. UNSNIP
As Ivo’s friend said above:
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.
Ivo adds:
They want to be monetary … Tsars themselves.