Russia backs return to Gold Standard to solve financial crisis

Telegraph.uk ^ | March 31, 2009 | Ambrose Evans-Pritchard

[Travis McGee]

Russia backs return to Gold Standard to solve financial crisis Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system. Arkady Dvorkevich, the Kremlin's chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund. Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal. Mr Dvorkevich said it was "logical" that the new currency should include the rouble and the yuan, adding that "we could also think about more effective use of gold in this system". The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending.

[RC one]

I thought as you did at one time. I changed my mind though. I have morethan enough guns and ammo. Frankly, I’m not comfortable buying any more as they may become illiquid in the future and they lack the portability and “hidability” of gold coins. Both offer a good hedge against inflation but gold is simply more portable. and, as far as being “just a metal”, remember, A.) it’s rare, much rarer than paper and B.) it has been used as currency for far longer than fiat paper hence the Russian’s suggestion that we revert back to it as the inherant flaws of unfunded paper currency become more and more evident. peace brother.

[DTogo]

Ya know we’ve got BIG problems when so many other countries make more sense than our own.

[Atlas Sneezed]

I’ll put my money into tools and raw materials.

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OK. You have $250,000 in addition to your well-stocked larder, and well-regulated gun and ammo collection. What do you buy, where do you store it, and how do you sell it when you need to turn some of your “savings” into, say, food, or the house payment?

[Kirkwood]

It’s not an either guns or gold decision. A wise person will have both.

[uncommonsense]

A .45 caliber handgun won't buy your freedom from a re-education camp ;-)

Gold has been a form of currency for 4 millennium. It also has intrinsic value as an element in thousands of products.

In 1900, an oz of gold would buy you the best suit on a rack. In 2009, it will buy you the best suit on the rack. Given the massive changes in the world over the last 109 years - in population, mining technology, electronics, politics - that is amazing consistency.

[uncommonsense]

"I'll put my money into tools and raw materials. Things that can really keep me alive if things go badly."

I'm just curious what your actual plan is? Are you stockpiling wrenches, tractors, rakes, gas...? What are the "tools" and "raw materials" that you are investing in and where are you keeping them (are you taking physical possession or are you trusting a 3rd party to execute your orders and manage inventory assigned to you and do you get to inspect the inventory)?

By the way, gold is a raw material - essential in the manufacturing of thousands of products. There are some inferior substitutes, but it's still in great demand.

[Kozak]

Gold for Bread

[GeronL]

Its sad when France, Germany and Russia makes more sense than the US