Divining the News (DTN)

Not Mainstream News

Russia (Like Ron Paul) backs Gold Standard

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The Banks, most famously the Fed, just print whatever they want. They also manipulate society and individuals at will, and all with the flick of a switch of a printing press.

Banksters, Gangsters, Madoffs, Bonuses – the age of falsity ..

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telegraph1

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.

By Ambrose Evans-Pritchard
Last Updated: 10:05PM BST 29 Mar 2009

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. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.

It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and “Great Society” social spending forced President Richard Nixon to close the gold window in 1971.

The world’s fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible – or less likely – under the discipline of gold.   –more–

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Video Ron Paul explaining the G20 summit simply

This video previously posted March 16th on this Blog

Ron Paul says there would be no need for the G20 meeting if there was a Gold Standard

Written by morris

March 30, 2009 at 4:15 am

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