World Bank chief Bob Zoellick made waves earlier this week when he penned an FT op-ed that contained a paragraph hinting at the return to a global gold standard.
Now he’s saying he never called for a gold standard, and that his words were manipulated.
First of all, if he’s angry, maybe he should blame the FT, which right after he pubbed his op-ed did its own separate article titled: Zoellick seeks gold standard debate.
Anyway, here’s what he said about gold:
“The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”
So he’s not saying that gold should be the basis for global money, but he is saying that gold should be the benchmark by which currencies are measured, which seems reasonable until you see moves like yesterday when gold surged and then collapsed int he span of fa few minutes.
It’s trendy to say that gold is becoming a money dollar alternative, but when so much is driven by people allocating more money into the GLD ETF, and it can move so fast, it’s hard to defend the gold price as a key benchmark.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.