World Bank chief advocating a return to the gold standard?

[marmar]

REUTERS
November 9, 2010 02:40AM


Leading economies should consider adopting a modified global gold standard to guide currency rates, World Bank president, Robert Zoellick, said on Monday in a surprise proposal before a potentially acrimonious G20 summit.

Writing in the Financial Times, Mr. Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.

The former U.S. trade representative, who served in several Republican administrations, said such a move "is likely to need to involve the dollar, the euro, the yen, the pound and (a yuan) that moves towards internationalisation and then an open capital account.

"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation, and future currency values," he added.However, analysts were cautious. ............(more)

The complete piece is at: http://234next.com/csp/cms/sites/Next/Money/Finance/5639954-147/world_bank_chief_surprises_with_gold.csp

[PDJane]

1. Good luck with that.

There is not enough gold in the world to cover the degts and 'value' of the money currently in the system.

[midnight]

2. I wonder why this Bretton Woods system broke down in the 70's?

I just wish there would be greater public oversite no matter what system they park in place...

[WinkyDink]

3. Sure, because the billionaires have now spent hundreds of millions on gold.

[Chulanowa]

4. What a ridiculous idea

Put forth by a bush appointee who was an executive VP of Frannie Mae, senior international advisor to Goldman Sachs, member of the Council on Foreign Relations, and a signer of the PNAC letter to Bill Clinton.

Basically this man is a walking nightmare.

[pscot]

5. What a splendid idea!

One of the bully-boys on CNBC said that matching the number of dollars in circulation to the gold in the treasury means gold would have to be priced at about $33,000 an ounce. My little gold mutual fund would make me an overnight millionaire. I say go for it.

[WinkyDink]

6. You'd just be a millionaire in a world of trillionaires. Here; have a loaf of bread.