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):
REMARKS BY PAUL A. VOLCKER AT THE ANNUAL MEETING OF THE BRETTON WOODS COMMITTEE (WASHINGTON, DC)–MAY 21, 2014. A NEW BRETTON WOODS???
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.
I'm sharing links and opinions daily on Twitter (@BullionBaron).