Putin backing Ruble with Gold. China will soon back Yuan with gold. India will back Rupee with gold, and Saudi Arabia will back their dollar with Gold. Who will need US dollar anymore? I don't want it. I prefer a dollar backed with Gold. When the world goes to a Gold backed Yuan , US loses Reserve Currency luxury. That means US can't print money to kick road down the road. US will no longer have reserve currency or the strongest economy or strongest military. Standard of living will be very low.
not long , US is losing reserve currency soon and other countries backing their dollar with gold
forever , God will see to it because he is so happy about gays , affairs, and sexual misconduct
Did not bother to vote as the choices seemed oddly disjointed from one another. That said, the USA departed the gold standard long before the dollar became the world's global reserve currency. While American fiscal policy is hardly wise, the question of the gold standard is not really relevant.
In terms of the gold standard, what it offers is an independent basis on which to base a currency. In its' day, the gold standard was an assurance that the Federal Reserve/Treasury would pay $35 for an ounce of gold. This assuring the dollar as a store of value to that price. This then limiting the amount of currency the government could put into circulation and, effectively, limiting US debt and containing inflation.
The upside was price stability. The downside was that there was little latitude to counteract downward trends in the business cycle. This then resulting is deeper recessions and, ultimately, culminating in the Great Depression. At which point, the US government dropped the gold standard.
This being the ultimate point. The gold standard is a human contrivance. There is nothing magical about it. It is a tool, but like all tools can be misused and sometimes ineffective and when inconvenient, it can be dropped all together.
In the case of Russia and China, they will assure themselves some protection from American economic pressure. Although even there, a trading system built around end running the world's largest economy is not likely to prove viable over the long run. Russia and China may buy themselves some short term immunity from US economic and diplomatic influence, but in the longer run it is not likely that global investors will stash their cash into economies that have other problems that the gold standard will hide but not ultimately cure.
For example, China - as a result, in part, of its now no longer implemented "one child policy" is aging faster than normal human demographic patterns would otherwise suggest. As a result, China is growing older and this means a stagnating workforce and that, in turn, results in declining productivity.
In short, China is apt to grow old before it grows wealthy and the gold standard not only won't fix that problem, it potentially could make it worse. As under the gold standard, the Chinese will have no means of increasing their money supply in the face of declining demand. That is unless the Chinese were suddenly to dilute or drop the gold standard and has China has an unaccountable autocratic government, any investor will be putting his money into an economy with no accountability and therefore no reliability.
Long story short, as noted, the gold standard is a human contrivance and, as such, can be as easily dropped as it is adopted. Moreover, it has its own inherent disadvantages, including a reduced capacity of a government to influence its economy - something that the Chinese, Russian and other governments, as dictatorships, are not likely to tolerate for very long.
The USA has serious problems, but the gold standard would not likely fix them as those problems are deeply rooted, at the end of the day, in its culture and the politics that flow from that culture. By the same token, Russia, China and the rest may buy themselves some time out from under a US dominated global economy, but they have their own problems from which a turn to gold is not apt to buy them any escape.
It being added that, as noted above, the gold standard is a human contrivance, with both advantages and disadvantages, and not an act of nature, and thus as easily dispensed with as adopted. There is nothing about it that signals the rise of China or the fall of the USA. Indeed, at most, it is as likely to highlight their respective weaknesses as it is contain their numerous weaknesses.
You do realize that the US economy - the dollar very much included - boomed during the 1980s and 1990s. In fact, the dollar was so strong in the 1980s that it aggravated the trade gap with Japan, thus causing the Reagan Administration and Japan to adopt what was euphemistically called at the time, "voluntary trade restrictions."
Even past the 1990s, after the so-called "Great Recession" - though actually unemployment was higher in the recession that followed the stagflation of the late 1970s - the US economy has continued to grow. It was growing at about 2% in the Obama years and then President Obama said the nation would have to get used to 2% growth as the "new normal."
Then Mr. Trump came in, and growth jumped to 3.1%. Indeed, mostly what is hobbling growth now has to do with demographic factors.
The US population is aging. Therefore the growth of the workforce is slowing and, of course, the number of taxpayers is shrinking relative to the number of retirees taking benefits out of the system.
This is a problem that all industrialized nations are facing. Indeed, by global standards, the aging of the population is still at a relatively early stage. By contrast, Japan has the oldest population on Earth, Italy the second oldest and overall Europe has the oldest population of any continent.
China was doing remarkably well until it shot itself in the foot with its' "one child policy." That policy has been discontinued and now the Chinese government is desperately trying to encourage population growth. However, so far, it has had no success - and if history is any guide, it won't.
Bottom line, there is very little the gold standard can do to address these issues. Don't get me wrong, there are certain advantages to it, but the gold standard is not the magic wand its' advocates seem to think it is. Indeed, historically speaking, if less prone to inflation, it was far more prone to recessions and deflations. Think of all the "bank panics" of the 19th century ultimately culminating in the Great Depression.
Oh, and by the way, for all intents and purposes, the USA went off the gold standard under FDR. Nixon merely added the exclamation point, so to speak, in 1973.
What is this obsession of Americans to consider their country in decline? Honestly, the dollar still has a bright day ahead of it. Moreover, Russia began to seriously "Dedolarize its economy only in 2014 following the invasion of Crimea.
Reassure you, the dollar will remain the international currency, the Americans will therefore remain the first economic, technological and military power in the world.
Dollar only looks good because other countries dollar is even worse. The world economies are going to collapse because irresponsibility of fiscal policies
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