If they do this, the dollar is finished. Not that it isn’t close to finished in the near future anyway, but this will shoot the corpse in the head a few times for good measure.
It all depends on who is in a position to supply the gold. IF we where smart and could read the writing on the wall, we would open up more areas to mining (Mine Here Mine Now)....
One of the reasons I am hesitant to back a move to the Gold Standard now, here in the US, is that the supply side of that has been degrading in our country for quite some time and we could risk being held financial hostage by countries like South African and Argentina.
I’ll have to look it up, but I believe Russia has let her gold mining operations in Siberia go by the wayside like we have here.. tough place to work...
I don’t know much about this at all, but shouldn’t we have stuck with the gold standard in the first place?
Didn’t it all go down hill after the gold standard was jettisoned?
Yep, even with our reducing production, Russia has let her mining operations fall behind us.
http://www.lbma.org.uk/docs/conf2003/3d.pikhoyaLBMAConf2003.pdf
(page 2 of that doc)
Would this not ultimately be a good thing, even if short term, our dollar goes nutty?