there will be a major currency backed by gold in the coming years. free floating currency is only good for the standard bearer currency. currently, that currency is the US dollar. but while the fed buys treasuries by turning on the printing press, the international buyers of treasuries are not happy.
china is even beginning to discuss an alternate to the US dollar. if that happens, say hello to massive inflation! if countries stop buying US treasuries, our country is in trouble.
i think the most likely suspect for creating a gold backed currency is russia. russia is flush with natural resources. if they started demanding that they get paid in gold only for their oil and natural gas, things would change in a hurry.
it's not long before saudi arabia and other countries with hard assets begin asking for a hard asset back rather than funny money from the united states.
it's not long before saudi arabia and other countries with hard assets begin asking for a hard asset back rather than funny money from the united states.
when nixon closed the gold window in august 1971, making the dollar no longer convertible into gold, he may have staved off bankrupting the US. we convinced the whole world that our funny money was worth something. but i think the world is wising up on us.
