Gold Standard Should be Considered Again Says World Bank President

In what can only be a nod toward the true weakness to the global economy, World Bank president Robert Zoellick said major economies should considered reinstating a form of the gold standard again.

In an editorial in the Financial Times, Zoellick said countries should look at floating currencies, with gold used s a means of measuring the exchange rates.

Zoellick said what he's thinking is the new system would "likely to need to involve the dollar, the euro, the yen, the pound and (a Chinese yuan) that moves toward internationalization and then an open capital account.

"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values."

As expected, there wasn't a positive response to the idea from those responsible for policy, as it would undermine their ability to spend in any way they choose to, which has led to the economic global crisis we face today.

In other words, a true gold standard would force austerity and politicians to spend within certain parameters. That would mean they can't buy votes from the clueless electorate who don't understand what's going on.

All honest people are acknowledging the problem as described by Zoellick, but aren't willing to take the steps needed to curb the out of control spending the socialist leaders and countries have been participating in for decades, and which has finally caught up with them.

As Margaret Thatcher said in the past, the problem with socialism is you eventually run out of other people's money. That time has happened, and just lowering spending to deal with the current circumstances isn't near enough to take care of it. A band-aide will never do.

Competing currencies and a gold, and possibly other precious metal standard, which could include silver or other metals, would go a long way toward dealing with politicians that continue to break into the future piggy bank of our children and grandchildren, which we no longer are able to afford.