Expanding BRICS to de-dollarise planet economy .

[drudge X]

President Trump will never allow this.

 

[jwoodie]

There seem to be (at least) two factors at play which will determine the future value of the US dollar. One is the trading value of the dollar in relation to other currencies. As long as the US Debt/GDP ratio remains comparable to (or better than) those of other countries, the dollar should maintain its relative value.

Another factor is the commodity value of the dollar. As prices rise, the value of a currency decreases (aka inflation). This can be temporarily relieved by borrowing more money and printing more dollars, But in the longer term, the cost of borrowing money also rises, with interest payments taking absorbing an ever greater share of a nation's wealth. The ultimate cure for this downward economic spiral is official devaluation (if not abandonment) of a nation's currency.

But, other than partial debt repudiation, the official devaluation of a currency is meaningful only in relation to some accepted standard. Argentina can devalue its currency in relation to the US dollar, but in relation to what standard could the US dollar be devalued? Aren't other currencies facing the same problems as the dollar?

The solution may be in commodities themselves. While gold has been an historically accepted repository of value, other commodities may come forward as recognized units of trading value. This could result in a technologically sophisticated bartering system wherein the value of commodities would be set in relation to other commodities rather than subject to wild price swings induced by currency-based speculations. In this event, gold might itself become the medium of exchange for other commodities, rather than being defined by its current spot price in today's currencies.

Is an international Gold Standard on the way?

 

[Harpy Eagle]

President Trump will never allow this.

How would a president stop it?

 

[Harpy Eagle]

Is an international Gold Standard on the way?

There is not enough gold in the world for that.

I saw an article not long ago that said if just the US went back to the gold standard the price of gold would have to jump to about 11 grand an ounce to cover the money we have in circulation