World Bank chief surprises with gold proposal

[Matthew Zak]

(Reuters) - The world's largest economies should consider gold as an indicator to help set foreign exchange rates, the head of the World Bank said on Monday in a proposal that threw open the acrimonious currency debate just before a summit of G20 nations.

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http://www.reuters.com/article/idUSTRE6A72LT20101109

[Matthew Zak]

I thought this was extremely interesting.

Is it good, bad?

[sevin]

There's a good discussion about it in this thread (http://www.ronpaulforums.com/showthread.php?t=267877&highlight=world+bank+chief+suggests). Personally, I don't think it's a good thing, just another form of control. The price of gold can be manipulated. The answer is competing currencies, but most people can't even begin to grasp how that would work.