Are we returning to the gold standard?
Countries outside the Western sphere are buying up large amounts of gold and establishing alternative monetary systems to the hegemony of the dollar. But is it possible to return to the gold standard? Xavi Viñolas, editor of 11Onze, briefly explains it.
The consequences of the sovereign debt bubble of the states and of runaway inflation that continues to rise could be disastrous for the global economy. States are printing huge amounts of money because of the crisis caused by the Covid-19 pandemic, and thus accumulating a public debt that can hardly be repaid without more taxes and cuts at the taxpayer’s expense.
This is a scenario that could lead us to consider the plausibility of returning to the gold standard, i.e. a monetary system in which the value of currencies is sustained by their convertibility to gold, and where states are limited in their ability to print money that cannot be substantiated with their gold reserves. A system that would also control much of the speculation found in the current monetary system, is often key to the creation of financial bubbles.
But is it really feasible to return to the gold standard? Have any countries tried it? And what alternatives to the established monetary system are emerging? To find out more, watch the video below.
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