Is the World Bank's Zoellick sending us a signal when he's talking about returning to the gold standard?
World Bank president calls for debate on global gold standard
Robert Zoellick, president of the World Bank, shook up the world of international finance and central banking on Monday when he called for consideration of tying currency values to the global trade of gold, in hopes of producing more stable economies.
Basically, he called for the G20 to discuss establishing a global gold standard as part of an ongoing refashioning of financial markets -- and his remarks sent prices of the shiny metal soaring.
Gold, he wrote in an editorial published by The Financial Times, could be "employed as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."
Zoellick said the modified gold standard could play a key role in the third reformatting of the global monetary systems since World War II and the Bretton Woods Agreement.
to say that zoellick "shook up the world of international finance" is probably a massive understatement... guys in zoellick's position don't go around dropping this kind of bombshell without a great deal of preparation and clearance from the "bigs" behind the scenes... Submit To Propeller