According to an interview with Hard Assets Investor (HAI), Peter Schiff doesn’t want the U.S. dollar to be a reserve currency, and doesn’t want any other paper currency to replace it either.
Thus the discussion about which currency might replace the dollar is moot.
Even a basket of currencies managed by a global organisation is out of the question since as a staunch libertarian Mr. Schiff is against most organisations which aren’t motivated by profit.
Thus he reiterates his support for a gold standard.
HAI: Schiff: Well, the gold standard works. What we have now does not. Our founding fathers put us on a gold standard for a good reason, because paper currency existed around that time. It had existed in the past. And they were familiar with how miserably it had failed. So they wanted to set us on a gold standard. And we became the world’s wealthiest nation while on the gold standard. We were on the gold standard for all of the 19th century, which was our fastest-growing century (more so than the 20th century). We had the Industrial Revolution; we built up our arsenals and our democracy—we won World War II on the gold standard. We were actually on the gold standard up until Richard Nixon ended it in 1971. So to say that the gold standard is somehow arcane, or that you can’t have economic growth on the gold standard—that’s all nonsense.
It’s the politicians who don’t like gold, because gold imposes discipline on politicians. It keeps them honest, and politicians don’t want to be honest. They want to get elected.
Problem is, Mr. Schiff forgets that the gold standard itself proved to be unsustainable when forced. Deep down it really doesn’t make economic sense that the wealthiest nation should be the one who can dig up simply holds the most yellow metal.
Perhaps the best is to have no standard, and simply let people choose whether or not to have faith in a currency’s ability to buy valuable productive assets like houses, factories, companies, and commodities from the issuer’s home country. That’s actually pretty close to what we have now, except we should simply do away with any restrictions on gold transactions anywhere. If he’s open to that, then fair game.