Spectre of gold standard banished

Thanong Khanthong delivers an excellent insight on gold but offers the scary conclusion that “Europe is tilting towards a gold standard of some sort [and] the days of the fiat currency regime could be numbered”.

Fortunately, on Sunday, 77 per cent of Swiss voters overwhelmingly rejected the call for their currency to be anchored by gold reserves. Switzerland’s finance minister hailed the vote as a show of confidence in the central bank and a realisation that “gold is no longer as important as it once was as a tool to back up paper money”. In other words, gold is important only if people do not trust their central bank. In the modern world, trust is the basis of the fiat currency regime that superseded the long-gone gold standard. The return of that standard will come only when the end of the world is nigh. 

Songdej Praditsmanont