Russia Wants a Gold Standard World Currency

Unlike the story of the adoption of the Amero, the fact that Russia is calling for a gold standard world currency is not an April Fool's joke. Indeed, Russia, with its gold ore reserves, feels that a global currency tied to gold is the way to go -- although Russia would support the idea of special drawing rights from the IMF.

It's an interesting debate that is surfacing over the creation of a global reserve currency that is not dependent upon the solvency of the U.S. government. It is clear that some countries are no longer happy with the dollar as the world's de facto reserve currency.

It is unlikely that a global currency agreement will come out of the current G20 summit in London. While countries like China and Russia want to see a global currency, most of the other G20 are reasonably content with things as they are. The gold standard is especially unlikely, since money amounts outstanding right now far exceed the paper currency available -- much less the value of available gold.