World Bank proposes turned to the gold standard

The president of the World Bank and ex-secretary of the Treasure of the USA, Robert Zoellick, proposes to return to the gold standard like reference of change of the coins. Zoellick has opened the debate about the possibility of re-introducing the gold standard as reference in the parities of the principal coins on a global scale.

In an article published by the newspaper Financial Times, the president of the World Bank suggests to the leaders of the principal world economies, that they meet this week in Seoul in a new summit of the G-20, the need to fix a system in which there are involved the Dollar, the Euro, the Yen, the Pound sterling and the Yuan in which “there was used the gold as point of international reference of the expectations of the markets with regard to the inflation, the deflation, and the value of the coins”.

In this respect, Zoellick urges to the countries to reach an agreement that replaces the agreements of 1971, named like “Bretton Woods II“, which were establishing the system of foreign exchange floating established after the failure of the system of adaptable fixed changes instituted in the agreements of Bretton Woods of 1945.

“Although the textbooks contemplate the gold as money of the past, the markets are using it like alternative currency nowadays”, affirms the American banker.

10-11-2010
Zoellick warns that divided tensions feed protectionism
The president of the World Bank, Robert Zoellick, said that the international tensions for the exchange rates might continue and warned that they might bring like turned out a major protectionism if they are not managed appropriately.
For it, he asked to the countries of the G-20, which leaders meet from Thursday in Seoul, which they center in the growth as antidote.
The tensions in the currencies might dominate the agenda of the summit of the G-20.
On one hand, the United States accuses China of devaluating artificially his currency to increase the exports.
On the other hand, China says that the politics of easy money of the United States is making fall down to the dollar and is promoting the funds flow all over the world, what has a destabilizing effect.
“If you have a healthy world growth, the adjustments of the currencies will be easier”, said Zoellick in a press conference in Singapore. “If you have a situation in which the world economy is spending difficulties with a low growth or with suspense for possible decelerations, that is going to do that the adjustments of the currencies are more difficult because the people try to distribute a smaller cake instead of making one bigger”.
The Asian economies have shown his worry for the recent round of measurements of quantitative expansion of the American Federal Reservation because they might accelerate the capital flows in the region, create assets bubbles, generate inflationary pressures and get dearer his currencies.
Zoellick, nevertheless, said that this might be "exaggerated".

World Bank

Linkage to articles:

15-11-2010 EM
James Grant in New York Steal: "The gold standard is what the world needs”
James Grant, publisher of Grant's Interest Rates Observer, argues in the New York Steal, that the “gold standard is what world needs now” to go out of the serious crisis financial that it affects to the biggest economies of the balloon.
“That the economists remain open-mouthed: the classic gold standard, the same one that reigned between 1880 and 1914, is what the world needs now. For his utility, economy and elegance, there has never been a system as he.”
“The gold standard was a simplicity in itself. The national coins were endorsed by gold. If you did not like a currency, you could exchange it for brilliant (…) coins. The borders were opened and the money was free and without commitment. It was going where it was treated well. In the countries under the gold standard the state budgets were staying basically balanced. The central banks had the only civil service to exchange role (tickets) for gold, or gold for role. The public was deciding what he wanted.”
Briefly, the gold possesses a fundamental quality which the monetary role lacks: it cannot be created ad infinitum.

14-11-2010 Gzanotti
Which is the real problem with the return to the gold standard?
Lately, the topic of the "gold standard" has been again in the carpet, with the recognition of certain international monetary authorities of which it would be necessary to return "somehow" to him.
I claimed the Mises proposal and some of them said to me that it was impracticable.
Perhaps the confusion takes root in that the Mises proposal has not to do with Bretton Woods.
First of all, it is necessary to read it. Here it is:
mises.org books Theory_Money_Credit Part4_Ch23
In summed up accounts,
Mises was proposing that to be used the gold again freely like currency, no that the governments were basing on him to guarantee his paper money. This is, it was necessary to establish a free market of gold in which the North American citizens could exchange his dollars again for gold and then privatize completely the bank system of a such way that these were golden deposit houses again expressing the corresponding deposit receipts, with a reservation of 100 % (thing that some of us consider to be a transition politics).
The market has already decided for the gold. The spontaneous orders do not wait to the deliberate orders.
Of equal way, the dollar is already depreciating opposite to the gold, while Bernanke and Obama keep on entrusting to take the USA to a monetary catastrophe never seen earlier. The problem is that for the time being the habitual thing is to buy gold as future option to sell it then for another currency, when in fact, the privatization of the bank system and especially the elimination of the central bank they would allow to use the gold and his substitutes as a habitual currency in the national and international exchange, and it would prevent any other government from embarking in such madnesses like those that the FED is doing in these moments.
The impracticable thing the gold is not, but the central banks and his permanent legalized fraud.

10-11-2010 day (Mexico) - Under the Magnifying glass
The gold: lifebelt for a world monetarist without control
Precedents: The United States (EU) intensified the fearsome war of the currencies by means of his second “quantitative simplification” (euphemism of the vulgar massive impression of dollars) designed by the Israeli - estadunidense Ben Bernanke, who continues the demolition of the world finance to benefit exclusively the bankers of Wall Street, to the detriment of the proper citizens estadunidenses and of the rest of the humanity.

09-11-2010 newspaper Mexico - for Sergio Sarmiento
I return to the gold - Finally someone dared to say it in public
The Zoellick proposal has generated enormous criticism.
The gold, after everything, has been discarded like a modern value measurement by most of the professional economists and governmental officials.
The reason is that the system of fiduciary, based money nothing more in the confidence and not in the gold or any another product of value, there allows to the governments to create the circulating one that they take a fancy without bothering to collect resources.
At present the United States has a deficit of budget of 11 % of the Gross Internal Product ó 40 % of the entire governmental expense. This means that 40 cents of every dollar that the American government spends simply do not exist.
At first it is supposed that the government is not printing the lacking one but it is borrowing it across the emission of bonds of the treasure.
But although governments as that of China have bought 3.5 trillions of dollars, and even Mexico has taken part in the rescue with 110 trillion dollars, the world market already does not bear this notes avalanche.
That's why the FED has entered the quite and she is buying 600 trillion dollars of additional bonds to more than 1.5 trillions that it already has in the paunch. Quite so that Washington could keep on spending to the current rhythm.
If to print money was the way of generating prosperity, Mexico, Argentina and Brazil would have turned in the richest countries of the world in the 80s.
The truth is that the wealth can only be constructed across the work, the saving and the competitiveness, as Germany and South Korea have demonstrated it.
Japan is a notable example. When it supported sensible economic politics, of the 50s at the beginning of the 80, he amazed to the world with his growth. Later he wanted to face a financial crisis in the 90 increasing the expense deficit and up to the date it supports his stagnant economy.
To return to the gold – or to some another product of value, like the silver or the oil – the role that it had in the history of measurement of value would force the governments to stop creating money of an artificial way.
This would prevent governments like that of Washington from acting with the imprudence that George W showed. Bush up to provoking the economic crisis of 2008-2007, a behavior that sadly Barack Obama has continued.
While these conducts are not moderated, the money will look for refuge in value products.
That's why the price of the gold has raised from 300 to thousand 400 dollars the ounce in the last decade.
And that's why the oil and the silver are in levels historically high.
The investors of the world distrust a currency which only value takes root in the role and in the ink on which it is printed.

08-11-2010 Cotizalia - Kike Vazquez
The president of the World Bank proposes a new gold standard
The first openwork solution to the currencies war is already on the table, the biggest economies of the world might re-adopt a new modified gold standard, at least that is proposed by the President of the World Bank Robert Zoellick.
As the majority will know Bretton Woods it was the agreement celebrated in 1944 for which dollar passed from the gold standard to the boss, so that the American currency was remaining concentrated on 35$/ounce being in turn this one the reference of the rest of the world.
Also he remembered the creation of the mentioned IMF and of the proper World Bank, hence if header that this comment has moreover relevancy for being the President of the above mentioned organization who says it.
The agreement lasted what lasted, and it was until 1971, there the USA decided to break unilaterally his exchange rate with the gold to happen to have freedom of action (and printing). Of those muds these muds that are said usually, the events seen lately have left patent that one needs a new regulation, it is necessary only to see the golden ounce to almost 1.400$ to realize from what it is going on, the tickets cost every day less and the USA has a power that of course should not correspond to him.
The idea of a new Bretton Woods is not new, numerous economists go asking for it for time and it is probable that we have come at the moment of putting it on the table and implementing it, the crises seen in the currencies of emergent markets years ago or the current situation there are a good sample of it.
Now then: how will it be carried out?
The fact of not being able to manipulate the currency, is for a pure gold standard or some derivative, he would be of benefit clearly to the most competitive countries.

29-10-2010 Libertad Digital
Juan Ramón Rallo, the Director of the Observatory of Economic Conjuncture of the Institute Juan de Mariana, and, teacher of economy in the University King Juan Carlos
Why the gold standard?
Why a gold standard and not a boss silver or copper?
Very simple, so that the money could expire with his basic functions (change way, deposit of value and account unit), it must exhibit certain objective properties that the gold possesses in an ideal way, in contrast to what it happens with other metals and other economic goods.
This way of easy.
For everything previous, if we want to end with the business cycles, it is necessary to return to the gold standard.
Or better still, there is that desregular really the bank system so that the proper entities, in competition, can express their own money … convertibly in gold.

29-10-2010 Libertad Digital
The solution to the crisis: Garden of Copse: "It reserves 100 %, end of the banking central and turned to the gold standard”
The professor Jesus Huerta of Copse, which proposals to reform the banking are being considered by the British Parliament and the Bank of England, offered a conference on this matter in The London School of Economics.
28-10-2010 The Cobden Centre
Jesus Huerta of Copse - Economic Recessions, Banking Reform and the Future of Capitalism
In order to putt an end to any future manipulation of our money by the authorities, what is required is the full privatization of the current, monopolistic, and fiduciary state-issued paper basic money, and its replacement with to classic purée gold standard.

Linkage to articles in English:

08-11-2010 Financial Times
Robert Zoellick seeks gold standard debates

08-11-2010 Bloomberg
Consider Gold in Overhaul of Bretton Woods, World Bank Head Writes in FT

08-11-2010 The Sydney Morning Herald
World Bank chief moots return to gold standard

08-11-2010 Zerohedge
World Bank President Robert Zoellick Calls For Return To “Old Money“ Gold Standard
In other words, welcome back gold standard 2.

18-11-2010

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