Guest voldemar Posted May 15, 2011 Posted May 15, 2011 Ths is from Zerohedge.com: Topping off a weekend of surreal news is the announcement from the Central Bank of Zimbabwe that the country is now evaluating introducing a gold-backed Zimbabwean dollar, and, in keeping with the Salvador Dali feel to the past 48 hours, that the "days of the US dollar as the world's reserve currency are numbered." Yes. Zimbabwe, the same place that two years ago sported a brand new crisp Z$100 trillion bill. What is just as odd is that this news comes less than a week after Iran's President Mahmoud Ahmadinejad criticized US economic policies, saying that the paper currency created by the American government is taking a heavy toll on the global economy. While Zimbabwe, which now transacts almost exclusively in foreign currencies such as the USD and the South African Rand, is actively considering ways to return its own currency into circulation, the man who has up to now served as an inspiration and a role model to Ben Bernanke, Gideon Gono, said the country should consider adopting a gold-backed currency. Quote
Guest fountainhall Posted May 16, 2011 Posted May 16, 2011 If there are "trillions" worth of gold reserves out there, why is the price of gold now so high? And once that gold is extracted, won't the price come way down? How much gold do indebted countries like the US and UK hold? Shouldn't they be major sellers to help with their deficits? (Economics was never my forte). Quote
Guest voldemar Posted May 16, 2011 Posted May 16, 2011 If there are "trillions" worth of gold reserves out there, why is the price of gold now so high? And once that gold is extracted, won't the price come way down? (Economics was never my forte). The whole thing is essentially the joke. Even if they introduce "gold-backed"currency who is going to trust them? I mean who would seriously believe that Marxist president Robert Mugabe can be trusted? As far as your question, well it is precisely other way around: they have trillions in reserves because the price of Gold relatively high in US Dollar terms...Many serious investors believe that actually the price of gold will go much higher: you see, extraction of Gold is much more expensive than printing paper money... The punch line of this joke is that even such ridiculuos places like Zimbabwe start talking about gold-backed currencies and diminishing role of US Dollar as world reserve currency. The debasement of US Dollar is broadly attributed to "chairsatan" Bernanke and current US administration... Quote
Bob Posted May 16, 2011 Posted May 16, 2011 The debasement of US Dollar is broadly attributed to "chairsatan" Bernanke and current US administration... Hmmmm.....it is so interesting to learn that all of the US's problems have been caused in the last 28 months. That fits with some political views but it's hardly accurate. But there's no need to let facts get in the way. Quote
Guest voldemar Posted May 22, 2011 Posted May 22, 2011 Zimbabwe prepares to launch: http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency Quote
Guest Astrrro Posted May 27, 2011 Posted May 27, 2011 Seems to me dollars, euros, or yen is a better option. Yes, Uncle Ben's secret plan, as he does not announce this when testifying to Congress, is to debase the greenback. While this may be good for Amerika, as reflation may solve some problems, this is not good for me, an Amerikan who's life savings is mostly in dollars. Quote
Guest voldemar Posted May 27, 2011 Posted May 27, 2011 Seems to me dollars, euros, or yen is a better option. Yes, Uncle Ben's secret plan, as he does not announce this when testifying to Congress, is to debase the greenback. While this may be good for Amerika, as reflation may solve some problems, this is not good for me, an Amerikan who's life savings is mostly in dollars. It is perhaps good for Amerika but definitely not for America. I agree with you: if you are American (even if your savings are in Gold), what is going on is not good... Quote
kokopelli Posted May 31, 2011 Posted May 31, 2011 How much gold do indebted countries like the US and UK hold? USA has the most gold reserves, about 8,000 tons; the UK about 300 tons. Quote
ChristianPFC Posted June 1, 2011 Posted June 1, 2011 I like the idea of gold-backed currency. But I'm not an economist, so I don't know how this will influence world trade. I think the printing of money is the root of many evils (national debt and inflation). Quote
