Ideally, you could trade your fiat paper currencies for these gold-linked currencies at any bank that offers foreign exchange services.
One wonders how Doug Von Allmen, who began life in poverty, working as a window washer and factory grunt, became a man intolerant of any "creaking" on his yacht, irritated by the slightest whooshing of the air-conditioning system and concerned with the placement of gold-plated toilet-paper dispensers.
Nations would settle international payment deficits and surpluses in gold rather than paper-based currencies.
By the end of next year, I would like to see the introduction of gold-linked paper currencies.
The United States outgrew it as early as 1810 or so, as dozens and then hundreds of commercial banks began issuing gold-linked paper banknotes as an alternative to metal coins.
Because it is impossible to manufacture and traditionally difficult to extract and process from the ground, gold served as a stable peg for coinage and paper money issuance--but no nation operates on a "gold standard" today, as most abandoned it during the 20th century after major powers suspended it periodically during times of costly military adventures during the 19th century.
Before allowing that tendril of delicately battered calamari to hit the tongue, a diner should first admire the artistic manner in which the tempura was arranged upon the gold-flecked Japanese paper lining its woven bamboo dish.
It is this expectation of global paper currency debasement which makes gold an attractive long-term investment.
It is this expectation of paper currency debasement which makes gold an attractive long-term investment for us.
Some were tempted by promises of land, others by the fact that the king's armies paid in a gold-backed currency, not paper dollars.
Although the Bretton-Woods system (1948-1971) was a pseudo-gold-standard manipulated by central banks, it was far superior to the fiat paper regimes seen since 1971, which have contributed so much to the boom-bust cycle, to unprecedented market volatility, over-leveraging, government budget deficits, debt crises, and economic stagnation.
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How can gold trade at new all-time highs when Treasury paper is so strong with yields down near historic lows?
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But then, in 1971, Richard Nixon replaced a more-or-less solid dollar, vaguely backed by gold, with a pure paper dollar, backed by nothing but the good intentions of government employees.
These alarm bells that China should increase its gold and even start building a silver position, plus increase its forex position in non-dollar paper have been ringing louder and louder, and for years now.
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