Russia Promotes Gold As Partial Backing For World Currencies

[haha]

Russia backs return to Gold Standard to solve financial crisis - Telegraph

It's the 70s all over again, with talk of gold and Special Drawing Rights and interest in backing away from free floating currencies.

Ha

[Free To Canoe]

Interesting.
Not surprising that large gold producing Russia, with their current activist leadership would support a change in the status quo.
Larger player China supporting something besides the US dollar as a base is interesting. I guess they don't want to kowtow to the dollar any more.

[Jay_Gatsby]

Quote:

Originally Posted by Free To Canoe Interesting. Not surprising that large gold producing Russia, with their current activist leadership would support a change in the status quo. Larger player China supporting something besides the US dollar as a base is interesting. I guess they don't want to kowtow to the dollar any more.

China is more interested in preserving the value of its $1T investment in U.S. Treasuries. It believes that Obama is spending so much, so quickly that inflation is inevitable. In 2007, the inflation rate was about 4.08%. This was higher than any year since 1990. In 2008, the inflation rate was 0.09%, the lowest rate since 1954. Consumer prices in the US peaked in July of 2008, and by January of 2009, prices had actually declined by about 4%.

[Free To Canoe]

Quote:

Originally Posted by Jay_Gatsby China is more interested in preserving the value of its $1T investment in U.S. Treasuries.

The threat of inflation creation seems like one way to keep the Chinese ego in check.

Free

[showtime09]

Quote:

Originally Posted by Free To Canoe Interesting. Not surprising that large gold producing Russia, with their current activist leadership would support a change in the status quo.

Not surprising that largest debtor nation America, with the good fortune of having the world's reserve currency (which is has manipulated and taken extreme advantage of), would want to keep with the status quo.

I'm all for returning to a gold standard.