Monday, November 8, 2010

World Bank President considers gold in overhaul of Bretton-Woods

This can't be. The World Bank, the financial bastion of old world economics is touting gold as a reference for currency values. The World Bank isn't some random group of lunatic fringe conspiracy theorists. Historically, they have certainly not been gold bugs--if anything, they have been anti-gold for decades. Now this:

The development of a monetary system to follow on from 1971’s Bretton Woods II will take time, but it’s time to start, World Bank President Robert Zoellick writes in the Financial Times.

This week’s summit of the Group of 20 leading economies in Seoul presents a test of international cooperation offering an opportunity for a key group of G20 countries to agree on parallel agendas of structural reform, Zoellick writes.

The system should evaluate using gold as a reference point of market expectations about inflation, deflation and future currency values, Zoellick writes, noting that while textbooks may view gold as “old money,” markets use it today as an alternative monetary asset.

Is this a further sign the global, fiat-based currency system is on the brink of collapse? This announcement by the head of the World Banks is like the Pope declaring religion is dead.

Who still thinks gold is a "barbaric relic"--because "you can't eat it"? Try eating green paper, and see how that tastes.

Once more--Gold, bitchez!

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