For the typical servant of the world’s socialist elite, Robert Zoellick, the current president of the World Bank, certainly has ideas that are quite untypical. In November last year he said that the governments of the leading 20 economies in the world are foolishly ignoring the soaring price of gold which is the best indicator that their economies have lost the confidence of both the populations and the investors. He proposed that they pay closer attention to the the price of gold, and even suggested as a possible solution a “new international monetary system” with gold in the center as a reference point for market expectations and currency values. As if this wasn’t enough to earn him scorn from the paid claqueurs of the socialist political elites, he also talked about “free trade,” “anti-protectionism,” “growth based on market competitiveness,” etc., ideas that those same governments he was speaking to have been working tirelessly in the last century to completely erase from the language and the memory of their populations.
He got what he deserved: A lot of ire and fire directed at him. Even Paul Krugman decided to give Zoellick some polite attention, calling Zoellick’s proposal a “barbarous relic,” and starting his article with the following words:
Gold price was $1,400 at the time. As I am writing this, it is about $1,760, and everyone is expecting it to hit $1,800 by the end of this week. An increase of almost 30% in 9 months. Or, from a more realistic perspective, given that the value of gold doesn’t change, a decrease in the value of the US Dollar by almost 30%. Which in real terms means, a decrease in the confidence of populations and investors.
Zoellick was right, after all.
Yesterday, speaking to the members of the Asian Society in Sydney, Australia, he made another statement, again. He warned again that the market participants have lost confidence in the leaderships of some of the key countries which takes the world economy into a “new danger zone.” This comes two weeks after Tim Geithner, with the cheerfulness of a village idiot, declared to the world, “Welcome to the Recovery!”
This time even Krugman remained unconvinced by Geithner’s forced optimism. But Krugman has no solutions. Back in November he blamed Zoellick for working for the “descent into the Dark Age of the economics.” Today it is obvious that without a stable monetary standard, the Dark Age of the world economy has come; although the economists themselves are still living in their own Golden Age, still paid big bucks as if they were ever able to predict anything or give any sound advice. But Krugman still doesn’t know what needs to be done. Neither has he apologized to Zoellick for the outrageous insults against him. By even mentioning gold as money Zoellick said things that will certainly make him infamous among the elite intelligentsia that is driven by its lust for power. He made sure he would go unheeded. A stable money is the enemy of the elite; anyone who calls for it has signed his own verdict to be ignored or scorned and slandered.
But whether the world’s political, financial, or economists’ elite notices or ignores Zoellick, the market keeps ignoring them. The currencies that just until two years ago seemed to be the safest reserve of value, today are going down the drain. The chickens have come home to roost, and the elite have no answer. And when the elite have no answers, their fall is only a matter of time. Zoellick is right again: It is a vote of confidence, and the governments have lost the vote.