This post-Bretton Woods system was much more fragile than the system that existed between 1945 and 1971. Though the dollar/oil arrangement was helpful, it was not nearly as stable as the pseudo gold standard under Bretton Woods. It certainly was less stable than the gold standard of the late 19th century.
The simplistic logic of this theory is that the world should 'go back' to the Gold Standard - or as some put it, improve the 'corrupted Gold Standard' of the 19th century, and then everything will be fine. All currencies of the World, should be indexed to Gold - and then everything should be fine. Currency can be redeemed against gold - and gold reserves equivalent to currency should be kept as reserves. This will kill inflation, stop war, make politicians honest, make tax payers honest, citizens hard working and business efficient.
In short a magic bullet.
The last time, we saw this, it was called the Bretton Woods. The US and the Anglo Saxon Bloc came together and said we will administer the new world currency system. The world agreed - once again. And we know what happened.
A Bad Idea - Whose End Has Come Too Late
Gold is the root of war. That is gold in the hands of kings, generals and rulers.
AlexanderAlexander’s campaign started with the gold reserves that his father had built from the mining operations at Mount Pangeus. The Macedonians were the first in the Hellenistic world to keep standing army - a luxury and big expense, in Greece at that time. (His first sexual experience was with a slave girl from these mines, Leptine from the slave camps of Mount Pangaion also written as Mount Pangaeus).
In 357 BC, Alexander’s father conquered Amphipolis in Thrace, an Athenian colony - and that gave him possession of the Mount Pangaeus gold mines. Gold from theses mines financed Phillip’s wars. (356 BC - captured Potidea in Chalcidice, Pydna on the Thermaic Gulf; 355 BC Crenides, a Thracian town (later re-named Philippi). 354 BC - Methone, advanced into Thessaly. 348 BC - Completed the annexation of Chalcidice, including Olynthus). His politics and financial muscle got him (346 BC) a seat in the Delphic council, a prestigious position in Greece.
Alexander set off on his campaign with this hoard of gold - and King Phillip’s standing army. The Persian conquest further added to his gold hoard.
The Roman empire was similarly funded by gold mining and loot. Julius Caesar’s European conquests were funded by Gaellic loot. The Punic Wars with Carthage were fought over Spanish Gold. Roman conquest and love affair with Egypt was motivated by grain and Nubian gold. One of the first actions that Romans took in Wales, Britain was to build an gold ore refining system. Gold mined in Britain went to Roman coffers.
Charlemagne of France - The First Christian Emperor
Charlemagne’s conquests were funded by the Saxony mines, the Haartz mountains, etc. His victory over Avars, (modern Hungary) gave him treasures which needed 15 carts, pulled by grey steppe oxen for transport.
America And The Great Depression
Roosevelt gave a New Deal to the Americans. He took away all their gold. WW2 followed soon thereafter. The British loot from Canada, Australia, South Africa - and India, gave the world, numerous wars and brought humanity “under the heel by means that will not bear scrutiny."
It is these very same Gold reserves which gave birth to the Bretton Woods, - and we know what happened after that!
What Should We Do With Gold
Just sell it to people. From all the countries of the world.
The world financial organization should limit control of global gold output by any mining organization to 10% or a single mine - which ever is higher. Gold holding should be widely dispersed, as widely as possible - amongst individuals. No national government, in the new financial architecture should not be allowed to have more than 250 tons of gold - to progressively reduce to 50 tons.
What this will do is disperse gold holdings among the citizens of the world - and dilute the ability of nations to wage war! National Governments (like the US), have used gold looted from their own citizens (and others) to deprive other peoples of the world of gold - and wage war.
Lakshmi - And Her Two Vahaans
Lakshmi the Indian Goddess of wealth rides on two animals. The airawata - a white elephant, is one. She blesses the deserving, by the day, riding on the airawata. The deserving and the whole world knows that the deserving have been blessed - by Lakshmi, when she comes riding on the airawata.
But the other way, in which Lakshmi dispenses her favors, is by night - when she comes flying on a owl. No one, including the recipients of her bounty, comes to know when she arrives - or more importantly, when she flies away. Spain and Britain are two excellent examples, when Lakshmi came at night and flew away. The Spaniards and the English are still wondering, what happened.
The new financial blue print must ensure that Lakshmi comes riding on the airawata - and we have a sustainable currency system!