Russia has become the first major country
to call for a partial restoration of the Gold Standard
to uphold discipline in the world financial system
Arkady Dvorkevich, the Kremlin's chief economic adviser
said Russia would favor the inclusion of gold bullion
in the basket-weighting of a new world currency…
Mr Dvorkevich said it was "logical" that the new currency
should include the rouble and the yuan, adding that
"we could also think about more effective use of gold in this system"
The Gold Standard was the anchor of world finance in the 19th Century
but began breaking down during the First World War
as governments engaged in unprecedented spending
It collapsed in the 1930s when the British Empire, the US, and France
all abandoned their parities
It was revived as part of fixed dollar system
until US inflation caused by the Vietnam War
and "Great Society" social spending forced President Richard Nixon
to close the gold window in 1971
It is widely argued that the financial excesses
and extreme debt leverage of the last quarter century
would have been impossible - or less likely
under the discipline of gold
Russia backs return to Gold Standard to solve financial crisis
If there were $744,000,000,000 US dollars in 1971
and $10,298,000,000,000
before the Federal Reserve stopped publicly counting
did America acquire present want and sacrifice future need
by creating an over-abundant currency supply?
On March 23, 2006, the Board of Governors of the Federal Reserve System
will cease publication of the M3 monetary aggregate
US Federal Reserve Announcement
November 10, 2005
Have American legislators and the Federal Reserve
been abusing the dollar’s status as a reserve currency
to avoid overtly raising domestic taxation
by covertly taxing US dollar denominated assets like oil
by over-printing money?
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