While many might support the concept of currency that is backed by something of value -- the traditional concept of Gold as a standard for the dollar or other currencies, seems rather archaic.
Gold has modest intrinsic value -- i.e., we could probably live without it!
As commodities ETF's become more popular (and strategic commodities stockpiles are accumulated) -- the financial and intellectual underpinnings for using a basket of commodities as the standard for existing or a NEW global reserve currency would seem self evident.
In order to best combat inflation, "downstream" commodities could make more sense. This could include gasoline rather than crude oil, processed food rather than wheat, steel rather than iron ore, etc. Individual countries could skew the basket to the commodities that it produces/consumes.
And as Mr. Paulson has developed a gold-denominated fund -- commodity (basket)-denominated funds would make sense. This would particularly apply to foreign exchange reserves (rather than investments in Treasuries, etc.). Unfortunately, this might be adverse to gold and Treasury prices.
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