Last year Robert Zoellick, the head of the World Bank, suggested that countries consider a return to some form of a gold standard. He said that “Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”
Within 24 hours, Zoellick’s comments were attacked by many economists arguing for the status quo. This lead Zoellick to distance himself from his previous comments about the gold standard a few days later.
2 months ago however, Steve Forbes predicted that the United States would return to a gold standard within the next 5 years. He stated that “people know that something is wrong with the dollar” and that “you cannot trash your money without repercussions.”
Furthermore, Utah recently passed legislation to recognize gold coins as currency. Legislation has been introduced in the U.S. Senate to recognize gold coins as currency as well. Additionally, today the Telegraph reported that “step by step, the world is edging towards a revived Gold Standard as it becomes clearer that Japan and the West have reached debt saturation”
It seems that, although slowly, the world is coming around to the idea that a fiat currency is not the answer. The momentum is moving in our direction. Let’s just hope we educate our fellow citizens, of the importance of backing our money with assets, before it’s too late.Published in