Why not make our own gold standart, all over again.
Ounce of gold is ounce of gold, always. We all could get paid in gold or $Au by our company transfering so many ounces and grains from their account to ours. Note, no physical gold is needed here, just normal numerical credits and debits.
On any given moment in time one could exchange these troy ounces and whatever number of grains for so many $Us or so many $Au or so many ounces of silver or so many tones of iron or kilograms of live kettle, or even Big Mac.
We would not have to carry the gold with us, the bankers could keep the records for us, as they do now and keep some on hand just in case I want to draw some out and give it to a jeweler to make me a ring or a dentist to make me a tooth.
Otherwise I would withdraw Ausies in Australia and Bath in Thailand and Greenbacks in Disneyland. Banks would work out how many ounces and grains ( and whatewer fractions we chose to use) I drew out, and debit my account in gold oz.
That would give us the reserve currency that the world badly needs,and a base for currency exchange valutions. Instead of trying to determine on the market how many swiss franks are needed to buy 1000 rimbini, we let market value the currencies in grains off gold or ounces and bingo.
We would not need to have tons of gold in some central bank somewhere to back all the currencies up, like in the old days of gold standard. I just would have my worth in my financial institution like I do now, but it would be expresed in grais of gold or if I choose in $A while I live in Australia. And if I went to Bali my account would be debited the amount of gold grains equivalent to the amount rupias withdrawn as valued by the market price of gold on the day.
It would not be that much different from what is happening now and it would make $Us just another currency and not the reserve currency of the world, the way it is now. It gives US unfair advantage against the rest of the world, if they decide to do some Quantitative Easing ( or print more money in plain English) we all pick up the bill not just Yanks.
In gold system if they printed more geenbacks, market traders would notice and devalue the greenback against gold. So my $A expressed in gold would now allow me to buy more $US. We would not need FX markets to work out the exchange rates by supply and demand on the day. Supply and demand can get out of kilter and be manipulated. It fluctuate unnecesarily for reasons other than true value of the currencies.
Lets give the world a truly reserve currency it needs.
