Daily Archives: August 31, 2012

James Mackintosh

My colleague Gillian Tett wrote a nice column today on talk of using the gold reserves of struggling European countries to help lower their financing costs.

She highlights a suggestion from the Gold Council, the miners’ marketing group, that European countries could issue bonds backed by their holdings of goldRead more

James Mackintosh

If it was good enough for Ronald Reagan, it seems to be good enough for today’s Republicans. This week the US Republican party agreed that if Mitt Romney wins the White House in November, a new gold commission will “investigate possible ways to set a fixed value for the dollar” – a gold standard.

The term “gold standard” actually covers a wide spectrum of limits on currencies, but all share a laudable aim: placing a limit on the creation of paper money.

Unfortunately the problems outweigh the disadvantages, and unless central banks and governments mess up so badly that we end up with extremely high inflation, there is little to no chance of any form of gold standard being introduced in the coming decades. Read more