In 2010, press outlets like ZeroHedge wrote about “one of the most serious condemnations of the race to the currency bottom to date com[ing] not from some peripheral media, but from the head of the World Bank itself.” ZH was referring to Robert Zoellick’s 2010 FT article in which was written the world “should also consider employing gold as an international reference point.”
As ZeroHedge writes, “welcome back gold standard 2.”
Zoellick, a Former US Treasury official, called for a system that “is likely to need to involve the dollar, the euro, the yen, the pound and renminbi that moves towards internationalization and then an open capital account. The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”
The following year, 2011, The World Bank discussed its expectation that the US dollar would lose its dominant role in the global economy by the year 2025, giving way to some sort of basket as the renminbi establishes itself on an equal footing in a new “multi-currency’ monetary system.
The World Bank posited the euro as a rival to the US dollar, but that is unlikely now. At least then they provided a caveat: “Its status is poised to expand, provided the euro can successfully overcome the sovereign debt crises currently faced by several of its member countries and can avoid the moral hazard problems associated with bail-outs of countries within the Union.” How could such a central institution not know of the problems in Europe? Well, the world is presented to us as a story-line, and so they were only fulfilling their role in the narrative with these pronouncements. A basket of currencies perhaps might function as a temporary solution to the dollar crisis, but ultimately something far more centralized is envisaged. Such as special drawing rights. Along this road to an centralized world soviet, perhaps a gold standard of some sort would be an appropriate means to bringing in austerity for the world.
The World Bank’s End of Dollar conclusions summarized:
- The postwar global economic structure –defined by the dominant position of
advanced countries –is in the midst of a fundamental change
- Rapid globalization and expected higher growth rates in emerging market economies will translate into greater economic influence for developing countries
- The move to multipolarity will be by and large positive for developing countries, but the transition needs to be managed
As the International Monetary Fund says of the gold standard:
The gold standard provided monetary discipline. Because governments were required to convert domestic currency into gold on request, the amount of currency they could print was limited by the amount of gold in their reserves.
And so, the gold standard serves a purpose to the establishment: monetary discipline of nations or austerity. That means economic austerity for the whole world. The gold standard has been brought into the mainstream plenty of times in recent history. Not only lifer politician Ron Paul floated the idea of a gold standard, SV wrote:
The Financial Times today trumpeted the return of the gold standard to mainstream US politics for the first time in more than 30 years. The Republican Party is looking a lot like a wolf in Ron Paul’s clothing – sneakers with the suit included – as it cloaks itself in gold and austerity for America. Could Ron Paul’s $1 trillion in cuts come for the United States in a repackaged form, as IMF and World Bank-styled”economic medicine” for America? Perhaps. Or this could be just a way of winning over a voting public in the midst of inflationary pressures. Election promises rarely trans-mutate into administration policy.
According to the FT, drafts of the party platform set to be adopted at the RNC convention in Tampa bay, Florida next week, will call for an audit of the Federal Reserve monetary policy and a commission to look at restoring the link between the dollar and gold. For some reason, not only has an audit of the Federal Reserve and precious metals come to partial-fruition, but the Republican Party, while thwarting aside Ron Paul himself, has adopted the Ron Paul Platform, if even only for pomp.
Or this could be the end of the party for Main Street, as fiscal and monetary discipline could now become the overtones of the Party’s social maintenance. Debt will be King as all debts will be payable in gold, something basically no US citizens have, except in 10k-14k cheap, US jewelry, that would not even be considered gold in some places.
A Republican congresswoman from Tennessee and co-chair of the platform committee, Marsha Blackburn, has shared that the issues were not adopted by the Party in an effort to appease Ron Paul and his delegates.
“These were adopted because they are things that Republicans agree on,” Ms Blackburn discussed with the Financial Times. “The House recently passed a bill on this, and this is something that we think needs to be done.”
The proposal is Reagan-esque. In 1981, president Ronald Reagan created a Gold Commission. That was ten years after Richard Nixon took theUS off its partial-gold standard in 1971. Reagan’s commission approved of Nixon’s decision to defend America from the “speculators.”
The commission would not enjoy the power to recommend anything, but it would provide the opportunity of education about a gold standard, according to Republican Party members. In 1980, Republicans ran under the promise of “restoration of a dependable monetary standard,” and in 1984 said that “the gold standard may be a useful mechanism.” That was the last party platform to make mention of the gold standard.
The Republican platform in 1980 referred to “restoration of a dependable monetary standard”, while the 1984 platform said that “the gold standard may be a useful mechanism”. More recent platforms did not mention it.
2013 MARCH 11 – Silver Vigilante