I keep trying to get this blog going again but I never seem to get to actually clicking publish.
Anyhow I saw what I thought was big news today and I think it warrants a short post.
Russia has decided to advocate a return to at least a partial gold standard.
I’ve believed up till now that this new reserve currency idea was going to wither on the vine as the flight to quality has already made the dollar more resilient than ever.
However, a serious return to the idea of using commodity money will be very attractive to countries that don’t like being forced to hold the dollar. While commodity money is certainly not without its flaws I suspect this new reserve currency could gain traction in poorer regions of the world and with countries currently on the outs with the current international regime. This gives the idea more legitimacy than other recent postures for power by a still greatly weakened Russia.
In other news out of Russia another opponent to the increasingly centralized power in Russia was blatantly assassinated today. This frequent Russian tactic is apparent to just about everyone watching and if the Putin thinks he is fooling anyone, he is only fooling himself.