Following on from the theme of my post here:
I thought I would share an interesting speech presented by Volcker to the Bretton Woods Committee around a week ago. While he doesn't mention Gold playing a part (as is the focus of my previous post), I think his comments are worth sharing (and don't appear to be covered on any other finance news sites that I can find).
Click below link to read in full (and I have included a couple of excerpts below):
He suggests a return to fixed/managed exchange rates & balance of payments equilibrium:
"We should be able, within a broad range, to manage exchange rates among major 6 currencies in a manner that discourages the extreme changes that are inconsistent with orderly adjustment. We can and should consider ways and means of encouraging – even insisting upon – needed balance of payments equilibrium."
And an end to the US Dollar as defacto global reserve currency:
"Nor would I reject some re - assessment of the use of a single national currency as the dominant international reserve and trading vehicle."
Having earlier in the speech mentioned the dilemma of building a monetary system around a national currency (Triffin Dilemma).
Volcker does highlight that significant change to the status quo is some time off, but that could easily be bought around faster with another major crisis.
