I suggest that you listen to this interview with James Rickards. Start at the 30 minute mark through the 36 minute mark. Rickards explains in very easy to understand terms how the world could return to a gold standard. He explains Winston Churchill’s error as Chancellor of the Exchequer after WWI in returning Great Britain to the gold standard at the pre-war pound-to-gold parity. It is a wonderful history and monetary lesson. The key point is that the world CAN return to a gold standard. There is always enough gold to do so. The only question is the gold price set by central banks. Gold is the invariable factor. So the price of gold would be determined by which monetary matrix central banks would use–the monetary base, M1, or M2–and the reserve percent, for example, 100% reserve or something less. But please listen to Rickards. His explanation is excellent.
Patrick Barron
