Greetings from Sedona…
The recent resumption of the droopy dollar syndrome has rekindled speculation about establishing a new international currency system using a basket of currencies as the lynchpin instead of the dollar. This kind of thing evokes images in my mind of rats fleeing the Titanic desperately searching for anything that floats.
Understanding why there are insistent and persistent proposals for replacing the dollar as the world's reserve currency, and why it is all useless, we must take a brief sojourn through the last century that led us to our present sorry state or monetary madness. On the eve of WWI only the United States, of the world's major powers, was on a true gold standard. Everyone else had been cheating for a long time. With the creation of the Federal Reserve, we joined the rest of the world on what I call the BS Bullion Standard.
