Anyone who still believes that the upcoming G20 meeting will result in some kind of global economic consensus is obviously smoking something illegal.
You have the US and the UK, with their insolvent banking systems, hoping that world leaders will adopt a massive, global spending scheme to jolt GDP back.
On the other side you have Continental Europe, which is showing surprising restraint, arguing (quite logically) that more borrowing isn’t the answer to a debt crisis.
And then you have China and Russia, with totally different interests talkinga bout new global currencies to replace the dollar.
And Russia, for one, wants the world to get back to gold.
Telegraph: Arkady Dvorkevich, the Kremlin’s chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.
Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.
Mr Dvorkevich said it was “logical” that the new currency should include the rouble and the yuan, adding that “we could also think about more effective use of gold in this system”.
Business Insider Emails & Alerts
Site highlights each day to your inbox.