For those who are reading this and thinking he is suggesting a return to the gold standard, he is not. What he is saying is a currency that is backed by real tangible commodities rather than debt and dreams. Commodities such as iron ore, silver, steel, and other precious metals. Given this fact it would be non-defaultable.
This will never happen with cooperation from the us. Dollar hegemony is the linchpin of american imperialism. Furthermore, commodity money just isn’t a good idea at all. I mean, with modern computer systems, you might as well just directly trade commodities instead.
Or at least from China I would have loved to see them attempt to introduce labor-time backed money (obviously this is not commujism, see marx’s crituqenof the gotha program). It would even work in China’s case given how dominant and export oriented their industry is.
I expect something along the lines described will become the BRICS currency. We’re basically moving towards having two competing economic blocs with G7 vs BRICS. What’s going to be interesting though is that G7 are far more reliant on what BRICS countries produce than the other way around. So, once BRICS currency is up and running, then China could tell the US companies that if they want to continue to do trade they have to use this form of settlement. It’ll be interesting to see what the US can do about that.
redeemable and anchored to real goods
So basically they want the gold standard back?
Where have I heard this before…
Also the gold standard is notoriously unreliable and a terrible economic choice.
Also if your system is supported by the Austrian school of thought free market economists then you’d be much safer just doing the opposite.
This so sounds like an Onion headline.
