How the dollar's collapse will lead to a new gold standard

How the dollar's collapse will lead to a new gold standard
http://www.moneyweek.com/file/12641/how-the-dollars-collapse-will-lead-to-a-new-gold-standard.html

On our way to a post-collapse, post-dollar world, Asia will likely transition from a de jure dollar standard to a de facto gold standard. This will happen in stages as the dollar crumbles; Asian countries and consumers will accumulate gold reserves surreptitiously at first, and may eventually formalize the transition through some sort of pan-Asian IMF-type arrangement.
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Very interesting. And logical. Read the full article.

Sound money naysayers argue that a gold standard cannot work in today's modern global economy. They declare the gold straitjacket too fiscally restrictive. They warn that there is not enough gold in the world to properly grease the wheels of commerce. But the naysayers wrongly assume that a gold-based system cannot contain leverage.
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Sounds like some folks here on DP.

Historic bank panics of the past were largely fueled by two things: 1) a lack of fiscal transparency, making it hard for investors and depositors to be aware of unsafe habits and practices, and 2) the moral hazard of guaranteed government bailout, allowing banks to go wild knowing Uncle Sam would step in if things went bad.
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This is what Austrian Economics excels at. Removing moral hazard, and making the market accountable to... THE MARKET.

Great read.

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How the dollar's collapse will lead to a new gold standard

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How the dollar's collapse will lead to a new gold standard

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