Russia backs gold for new basket for reserve currency

RedTiger

From the Telegraph.UK

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Arkady Dvorkevich, the Kremlin's chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.
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cohodk

Why doesnt Russia use gold to back their own currency thus making the ruble the reserve currency? Why? Because it isnt gold that makes a currency strong.

RedTiger

<< <i>Why doesnt Russia use gold to back their own currency thus making the ruble the reserve currency? Why? Because it isnt gold that makes a currency strong. >>



Keynes says that in the long run we are all dead. One corollary might be that in the long, long run, all paper currencies approach zero value. I don't know of any historical cases where unbacked paper money didn't become worthless. Maybe this time will be different. So for the U. S. it is about 36 years (since gold floated free) and counting. So far so good, so far so good ...

cohodk

Did other civilizations fail because their currency failed, or because their society failed? Me thinks it is not the currency wagging the dog.