the secret return to a 'gold standard', page-13

kgtom

"The US mightn't have a choice as to whether gold returns to a monetary standard or not. How long before the US$ loses it's hegemony."


There are two questionable assumptions in your comment:

1. You assume that the USD will at some point no longer be the principal currency of world trade; and
2. When that happens, the US will be forced onto the Gold Standard.

I agree that the first is possible, but it will not be sudden. Given the amount of revenue the US generates outside America, it may well work in their favour.

The second make no sense at all. Why would a loss of currency dominance force the US onto the Gold Standard?

America benefits from a weak US dollar through improved balance of payments. Why would they embark of a policy initiative that would squander that advantage?

Do you think that the currency vigilantes will hold a gun to the head of the US by promising to dump dollars and give the US and even larger trade advantage?

"If you don't get straight onto the Gold Standard and make us rich, we will trash your currency and make you rich" doesn't seem much of a threat to me.

Cheers