World Bank chief calls for gold to anchor forex
World Bank president Robert Zoellick has called on bickering G20 nations to bring gold back into the global monetary system as an anchor to guide currency movements.
This is very interesting because the World Bank President is actually putting forward the idea that the world should return to the Gold Standard for international trade.
At present there have been accusations against the Chinese of doing things to weaken their currency. On top of that the United States is being criticized for the Federal Reserves decision on the $600billion monetary stimulus. There is a chorus of criticism over Ben Bernanke’s decision because of the obvious inflationary effects.