I am not really announcing MishBucks. However, the concept, as described below, is real. I also discuss where a currency crisis is likely to start.
Understanding MishBucks
You deposit fiat money, credit cards not allowed, and I buy physical gold, held in your name, never lent. In return you get MishBucksTM. All transactions are on blockchain.
You can redeem your MishBucks for gold on demand. I will send gold to you, insured. If you prefer, I will sell your gold and send cash in any of six major currencies to your bank account on file.
Audits every month.
This is a super-duper-deal because I refuse to take any profit.
You do have to pay shipping costs, storage costs, and audit costs, but I will not profit in any way from any part of the process.
This unbelievable deal is 100 percent out of the goodness of my heart.
Want In?
Of course you don’t.
If you want gold, there are a number of places that already do what I just proposed, except that someone will profit a tiny bit.
Competition keeps the profit margin small.
But Wait! There’s More!
Along with the above, I announce the MBTCTM MishBucks Trading Currency (ooooh, ahhhh)!
As with MishBucks, the MBTC is 100 percent backed by gold and redeemable in gold on demand.
Who in their right mind would not want to be in on this obviously brilliant currency idea?
The floodgates are open. Everyone in the world will surely want to base their international trade entirely on the MBTC.
Right?
Introducing The BRICK
The Brick is my proposed name for a BRICS-based currency.
BRICS is an acronym for Brazil, Russia, India, China, and South Africa, nations that have little to do with each other.
On January 1, 2024, BRICS – the intergovernmental organization comprising Brazil, Russia, India, China and South Africa – admitted four new members: Egypt, Ethiopia, Iran and the United Arab Emirates.
Unfortunately, the more nations the BRICS add, the more unwieldy the group will become. The EU and UN are prime examples.
A BRICS Gold Standard?
A constantly recycled proposal claims The BRICS Will Use a Gold Standard 40 to 60 percent backed by gold.
Let’s do a one-on-one comparison.
MishBucks vs the BRICK
- MishBucks: 100 percent backed by gold at all times.
- The Brick: 40-60 percent backed by gold with no explanation as to how that works or what that means.
- MishBucks: Immediately redeemable in gold on demand, alternatively to six major currencies.
- The Brick: Not redeemable in gold, nor dollars, nor euros, nor yen.
- MishBucks: Don’t float. They represent a fixed amount of gold deliverable on demand. But at your request, you can alternatively convert your holding to dollars, euros, or yen instead.
- Bricks: Who the hell knows? Since the Brick does not represent a fixed quantity of anything, it needs to float.
Questions Abound
Is the Brick redeemable to anything, ever? If so to what and how?
Does the Brick float? If it doesn’t float, how is the peg maintained?
How liquid is the Brick?
Who or what controls the number of Bricks?
Is the Brick freely tradeable? Where? How?
Key Question: Why would anyone want to buy Bricks?
BRICS Gold Standard
I addressed the key question (Why would anyone want to buy Bricks?) in my post Will the BRICS Currency Use a Gold Standard?
Here’s a review the key points of the discussion.
Let’s start with this claim: “The Brics will go on a gold standard. By every definition of the word this person can think of.“
Really? What about redeemability? How can something backed by 40 percent gold or “perhaps 60 percent” be redeemable for gold?
It can’t. It is impossible to “back” something with 60 percent of something else.
Also, there is no explanation of whether the currency floats, how the currency comes into existence or any other details about how anything works.
Investor Questions
If you are an investor, would you buy BRICKs or would you rather buy gold, silver, or Bitcoin?
Trade Between Nations?!
But Mish, this is not for investors, BRICKs are for trade between nations!
OK let’s march down that path with more questions. This time let’s assume you are a Brazilian farmer (BF) who sells soybeans to a Chinese merchant (CM).
CM offers BF BRICKs for soybeans.
Why would BF want BRICKs? Can BF buy fertilizer with BRICKs? Farm equipment from John Deere? Pay rent?
What possible use does BF have for BRICKs? And why would CM have BRICKs to offer in the first place?
Logical Answers
BF has no need for BRICKs. He needs the Brazilian Real or US dollars to pay his bills or buy things he needs.
Similarly, CM has no reason to hold BRICKs because his expenses are in Yuan, the official currency in China.
Think of BF as any person. Think of CM as any other person. Why would anyone, anywhere, want to trade in BRICKs?
Trade is Not Between Nations
The whole idea of a “trading currency” between nations is absurd because trade is between individuals, not nations.
Trade deficits or surpluses are the result of millions of transactions by individuals.
I made numerous assumptions in an honest attempt to see if I could make sense of a BRICKs trading currency.
BRICK Assumptions
- The BRICK floats
- It will be “backed” (whatever that means) by 60 percent gold but it won’t be redeemable because something cannot be backed by 60 percent of something else.
- Everyone will accept on faith, or by audits, the gold exists.
- There will be no friction between the BRICS nations on how BRICKs are administered.
- BRICKs will be very liquid, assume by magic if necessary.
- There will be no fear of holding BRICKs.
- China accepts BRICKs and will freely trade yuan to local merchants who receive BRICKs in trade with BRICS nations.
Even if you believe those assumptions, what reason is there for Brazilian Farmer BF to trade with Chinese Merchant CM in BRICKs?
Note that it has to be to the distinct advantage of both parties to want to trade in BRICKs for that trade to take place. I did not mention that point in my rebuttal.
In this example, BF and CM are both in the BRICKs alliance.
The entire construct obviously blows sky high the moment BF or CM represent anyone other than trade between BRICKs nations.
I failed to make that point as well.
Anything Else?
Yes, nations accumulate US dollars because the US constantly runs trade deficits with nearly every nation.
This is what makes the US dollar a reserve currency. China supports export mercantilism and accumulates US dollars as a result, The latest report that China is dumping US dollars is highly likely false for mathematical reasons alone.
Regardless, China runs a trade surplus with most of the world except for oil nations. If China freely accepted BRICKs (one of my added assumptions) what the heck would the Bank of China do with them?
Here’s the scenario: The local CM accepts BRICKs but has expenses in yuan and dollars and taxes in yuan.
So the CM exchanges the BRICKs to the Chinese central bank for Yuan. And what does the Bank of China do with them? Answer please!
The same question applies to Brazil. If the BF accepted BRICKs and traded them to the Brazilian central bank for Real, what the hell does the Brazilian central bank do with the BRICKs?
Note that China can buy planes and other items for its SOEs with dollars. So can the Brazilian government.
China and Brazil also collect interest on US Treasuries. Where’s the global bond market on BRICKs? Answer Please!
Toot Toot!
Statista points out “May 16, 2024 — “In 2023, it is estimated that the BRICS countries have a combined population of 3.25 billion people, which is over 40 percent of the world population.”
40 percent of the world’s population is in the BRICS alliance. Wow!?
India is 17.76 percent. China is 17.72 percent. Russia is 1.8 percent. Brazil is 2.69 percent.
Lovely. That is 39.97 percentage points of the total.
What percent of global trade is between China and all the rest of the BRICS? I don’t have that answer, but I do have a number for Bilateral Trade Between China and India the vast majority of the BRICS.
China has emerged as India’s largest trading partner with $ 118.4 billion of two-way commerce in 2023-24, edging past the US.
The bilateral trade between India and the US stood at $ 118.28 billion in 2023-24. Washington was the top trading partner of New Delhi during 2021-22 and 2022-23.
Here’s the AI generated response
In 2023-2024, China accounted for 15% of India’s total merchandise imports, which were valued at $677.2 billion, with $101.8 billion coming from China. China has become India’s largest trading partner, surpassing the US in 2023-2024 with $118.4 billion in two-way trade.
Understanding What Won’t Happen
US-China trade will not be in BRICKs. Nor will EU-China trade. Nor will US-EU trade. Nor US-to-Anyone, nor EU-to-anyone, nor UK-to-anyone, nor Japan-to-anyone, etc. etc. etc.
Total global trade is over $31 trillion! The China-India trade is $101 billion.
If 100 percent of China’s trade with India was in BRICKs how would it possibly matter?
But for reasons presented, 100 percent of China’s trade with India will not be in BRICKs.
Smoke and Mirrors
Percentage of population or alleged purchasing power parity is more silliness given that nearly all of it is in two countries and those two countries have a tiny amount of trade with each other.
The four words that best describe the BRICS currency are smoke, mirrors, and nonsensical hype.
Will This Post Stop the BS?
Of course not. Preaching the demise of the US dollar is sexy. But perhaps my examples will sink in to some small percentage of BRICS lovers.
OK, trade in US dollars will decline over time. The China-India relationship is a good reason. Some of that bilateral trade will be in yuan and already is. But the BRICK offers no added value in bilateral China-India trade over the yuan.
The decline in dollar transactions on a percentage basis will be a slow process. Many of the reasons are welcome or neutral.
For example, US trade with the Mideast has plunged. This is not because oil is trading in yuan, but because the US is energy independent and no longer imports much oil. The decline in US trade with the Mideast is a very good thing for the US.
There are neutral reasons why trade in US dollars will decline. For example, consider the possibility African nations trade with each other in African nation currencies just as cross-border trade between India and China is slowing increasing in yuan.
There are not so good reasons for declining trade in dollars. Tariffs and trade wars are in this category.
Regardless, the idea that a BRICKs currency will fundamentally change anything is obvious nonsense.
Currency Crisis
I am not singing praises of the US dollar. I am just explaining why the BRICK solves nothing other than a limited amount of sanction avoidance.
Deficit spending is out of control, everywhere, including India and China. Were you aware China’s debt-to-GDP ratio hit a record 287.8% in 2023?!
A global trade war is underway.
I expect a currency crisis, timing uncertain. Where would it start?
The EU is a much stronger candidate than the US. The EU has budget rules that are not close to being met, terrible demographics, and no innovation (unlike the US).
On July 7, I commented, France is Now Ungovernable Following a Pyrrhic Victory for the Left-Green Alliance
I did not expect National Rally to win a majority, but nor did I expect a third place finish. This is a terrible outcome for both Macron and France.
For additional details and discussion, please see Debt Brakes and Treaty Requirements About to Smash the EU.
Germany’s export machine is permanently broken. The EU wants to block AI, not participate in development. With 27 members, the EU is unwieldly in every way. It takes unanimous approval to make any significant changes. EU innovation is dead.
If you are looking for a currency crisis, start with the euro. A currency crisis could also start with the Yen or Yuan. China and Japan are in very poor shape.
The yuan, euro, and yen are all more likely places for a currency crisis to start than the US dollar.
So ….
Anyone for MishBucksTM?
Can the US Return to a Gold Standard?
Alan Greenspan 1981 – WSJ – Alternate Link
https://newworldeconomics.com/alan-greenspan-wsj-1981-can-the-u-s-return-to-a-gold-standard/
I think if it ever comes to be, it would be a good lesson to chart from the beginning how many Brics does it take to buy a building brick and see over time how the currency depreciates. Kind of pessimistic, but that’s unfortunately been the norm.
You ask why should BF prefer to deal in BRICK than $. The answer is clear – because BRICK is not subject to the debasement of rival fiat. As the Swiss franc and the old Deutschemark showed, a currency does not need to be totally hard to be hoarded, only relatively hard. That will be BRICK USP in a fiat world. And Gresham’s Law suggests that BF will, indeed, prefer to hoard BRICKs than $.
Sobleepingwhat.
BF does not hold Bricks
He has to pay taxes in Real and buy stuff in REAL and US$
If he wants to hold something else he can buy gold or Bitcoin. The BRICK has no purpose
Thanks for the reply Mish. He does indeed, bit bitcoin is volatile and the $ is confetti, as you repeatedly note. So BRICK is a better alternative for his surplus – not his working capital. Gold, I take your point.
Let’s look at the big picture. The BRICS and many others don’t like the US using their administration of payments for the worlds trading system to push some of the users around. If they don’t like it bad enough, they will work hard to create an alternative system. And let’s say they do and for a while it works (more or less). And let’s say it crashes. I believe it would be a pyrrhic victory for the US. Today the whole world runs on unstable barrowed paper money. If the BRICS domino falls there is a great chance that the whole unstable system will collapse and take the US $ with it. The BRICK is d bigger danger than global warming.
Yes, I want some Mishbucks!
Mish – how about including this in your next jobs report analysis:
US – Trends in Death Rates from Neurological Diseases, Ages 15-44
Our results show that the excess UC (Underlying Cause) death rates from neurological diseases for individuals aged 15 to 44 age were 4.4% (Z-Score 4.9) in 2020, then rose to 10.0% (Z-Score 11.1) in 2021, 11.2% (Z-Score 12.4) in 2022 and 8.1% (Z-Score 9.0) in 2023. In 2020 we already observe a significant deviation from the 2010-2019 trend in UC death rates, and the excess UC death rates in 2021, 2022 and 2023 can be considered extreme occurrences due to their very high statistical significance. The results show a clear break from the prior historical trend in death rates from neurological diseases, pointing to a new phenomenon in action, worsening in 2022 and persisting through 2023.
https://t.me/EdwardDowdReal/863
There is no need for a new currency, simple local currency trading will do, with unwanted surpluses/deficits settled periodically in gold between CBs if they wish. Example: Brazilian farmer 1 sells soy to Chinese Co 1. Chinese co pays BF1 in Reals. To obtain those Reals, they sell yuan to their CB, which in turns buys the Reals from the Brazilian CB. Brazil CB now has some Yuan amount. Brazilian Farmer 2 buys a tractor from Chinese Co 2. BF1 buys Yuan from Brazil CB which buys them from Chinese CB, pays CC2. Chinese CB now has some Reals. Quarterly (or at whatever interval suits best, daily if they wish), CBs exchange the local foreign currencies they don’t want back with their originating CB counterparts. Any remaining excess a CB accumulates and doesn’t want, in whatever crappy local currency, is redeemable in gold on demand at another agreed-upon frequency. Net trade surplus countries keep accumulating gold gradually, others have to source it, if they can’t pay some penalty system (interest) applies, their currency takes a dive (same punishment current market system doles out if they can’t pay their USD bills) and/or they get kicked out until they have the means to honor their gold commitment again. Ecosystem as a whole still trades in USD externally, as things stand currently with a net overall surplus, this isn’t an all-or-nothing deal, just a partial de-dollarization (but an increasingly significant one). Why wouldn’t the above work? No need to add any currency, just reintroducing actual money (gold) convertibility at sovereign level (not individual private actors) is enough.
To the victor, WWII, belongs the spoils!
No Victor or spoils in WWIII.
The Big Mac Buck. One BMB will always buy 1 Big Mac, which meets current Big Mac specs. Cow herds take time to increase so inflation is not a problem.
USD, Pound, Euro, Yen all are not backed by gold.
So, why Bricks need to be backed by gold.
Russia shows how to trade without USD or Euro.
OPEC shows how to trade without USD or Euro.
Yes, US, Europe, Japan won’t use Bricks.
But they need BRICS to use and trade with their currencies
so that their deficits can be financed.
Over time treasury and bond interest rates will go up and
economy will be in trouble.
I thought buy-in to the Euro was a commitment in gold? So it’s semi-backed by gold?
Old FOFOA threads from long ago…
BRICs are not just worried about using $s. They are worried about Western govts, banks, clearing systems, and crazy debt and derivative levels. Perhaps BRICs will roll out their new financial system in one massive monkey hammer move.
The are 2 trillion dollars (by value) in circulation. Half of that is held outside the US. Most of that half is one hundred dollar bills. Presumably there are at least hundreds of billions in bank deposits outside the US. Dollars are valued because the currency has a long history of prudent management that is fair and transparent. Recent US governments, with their complex sanctions regimes and inclination to raid the dollar holdings of countries deemed to be outlaws, seem determined to destroy the value of the dollar. If BRICS currency were managed with greater prudence, more fairly and more transparently, and additionally backed by a promise to redeem in gold, it will displace the dollar. No currency has ever been 100% backed by gold. Just examine the history of the British gold standard – it never was more than backed by minority fraction.
The Bric is a trade settlement currency. The Bric is an expression of economic sovereignty.
The Bric will launch soon. It will adapt and expand. It will survive and mature. The Bric will do it’s job (displace $USD, evade vig/surveillance, mitigate risk).
The BRICS Bloc don’t need perfect money – they just need something that meets THEIR (minimal) requirements without any unnecessary complication.
Those looking for a libertarian/goldbug hobby horse should be pestering Milei !!!
“There will be no fear of holding BRICKs.”
…fear… like having all assets seized (stolen) & liquidated (spent) by nuke-wielding neoCon reptiles?? that kind of fear? or the insane risk of being 100% dependent on just one (politicized) clearinghouse (SWIFT)…? that kind of fear? or the complete forfeiture of privacy and custody? that kind of fear, maybe?
Looks like someone didn’t read the article…
One question. On the bill there will be your picture of course. In it, will you be smiling or will you go for a gravatas look?
“Smoke and Mirrors”
Today’s value of any fiat currency, tomorrow.
Mish, you left out the ELEPHANT IN THE ROOM: Yes, all nations mentioned in this article have fiat currencies, meaning the government forces citizens to use national currency to pay for taxes, fines, fees and licenses. But government doesn’t create the money; ONLY private banks do!
Every dollar you’ve ever used was created out of nothing as digital credit by a private bank. And banks ALWAYS charge interest for every dollar in circulation. (Proofs at: bankLIES.org)
We will never have stable money until the bank-controlled money scam is abolished.
I’m waiting to see how many people jump in here based on the title yelling ‘fraud’ without reading the first sentence.
Fifty thousand Mishes for that hamburger? What a deal! Oh. I need an app to unlock the savings, otherwise it costs sixty thousand bricks? Shoot. I’ll buy some buckwheat at the store and boil my own lunch…
But the dollar solves nothing either. It has a number of issues including sanctions, seizures, and devaluation. It’s only true merit is habit. Everything cam be priced in gold and traded in gold. If trade balances, there is no need to transfer any gold between countries. If not, then there will be a flow of gold. It seems like the best approach since it avoids the sanctions, seizures, devaluation problem associated with the dollar.
“Everything cam be priced in gold and traded in gold.”
not realistically, right now. The price would change every second and violently at times.
For gold to work, you first need to fix the way dollars are lent into existence.
How would you go about, “fixing the way dollars are lent into existence…”?
I was under the impression that the debt to GDP is most EU member countries was well below the US. I think Germany has a 60% debt to GDP. I know the EU is basically a cluster f but their deficits are less than ours. I am thinking the USD will collapse when we start massive printing just to pay interest on our debt. That minsky moment in coming.
Germany, Finland, a few others.
Not France, Italy, Greece and many others
I’m IN!!!!
Where do I sign?!?!?!?
: )
https://th.bing.com/th/id/OIP.xWIf-uQ8njmn2s_xai6QjgAAAA?rs=1&pid=ImgDetMain
“For example, US trade with the Mideast has plunged. This is not because oil is trading in yuan, but because the US is energy independent and no longer imports much oil. The decline in US trade with the Mideast is a very good thing for the US.”
The US days of being so called energy independent are numbered. I am reading several reports of now even natural gas production is at a peak which I previously thought was a few years down the road.
A currency crisis is inevitable, where it starts and the associated collateral damage remains to be seen.
Meanwhile Ive told this story a few times on this blog. When I was a youngster, I remember using a silver qtr at that time and it bought a chocolate bar for 10 cents and a Coke for 15 cents that in those days you pulled it from a freezer like machine. Then you returned the bottle for 2 cents and bought penny candies.
Nowadays a qtr cant even buy you the penny candies but that silver qtr has a value of $6.00 plus.
The dollar has lost 20-25% of its purchasing power in just the last 4 years. That trend aint stopping.
Gold and commodities will continue their appreciation against fiat currencies who are all on their way to being worthless.
Got gold
“The US days of being so called energy independent are numbered. I am reading several reports of now even natural gas production is at a peak which I previously thought was a few years down the road.”
And in the process down the road, why would oil nations want a dollar decreasing in value?
Because the dollar is shiniest turd in the basket.
I disagree. You’re a couple of years too early. US rig counts have been dropping for 2 years now and yet, production is up. One reason is because of improved operating efficiency, which means that fewer rigs are needed. The second reason is discipline among producers to rein in current “overproduction”. Flooding markets (particularly with natgas) in the last year, forced prices to levels that hurt profitability. The cure for low prices, is low prices.
If oil and gas prices rise enough, you will see drilling activity and production levels increase. The US is in good shape for several more years.
I disagree. ?overproduction.
Why US use SPR without increasing production?
The nation’s Strategic Petroleum Reserve (SPR) was launched in 1975 with the Energy Policy and Conservation Act. It currently holds around 360 million barrels of oil. That is down from over 600 million barrels of oil in 2021, and a peak capacity of 727 million barrels back in December 2009.30 May 2024
Yep. Natural gas is being over produced. Which is why the price has dropped from $8 two years ago to $2 today. And there is no SPR to release for natgas. Producers are hurting themselves by overproducing.
The SPR oil releases ended a year ago.
The SPR was scheduled to be reduced from 720 mb to 360 mb by congress in 2015. The plan was to reduce it by 20 to 40 mb per year. Why? Because it wasn’t needed anymore after the US doubled oil production from 6 mbpd to 13 mbpd because of fracking. Biden released 180 mb in 2022 when oil prices spiked because of the Russian invasion of Ukraine. After dropping to 350 mb last July, they have already added back 28 mb in the last year. If there was a shortage of oil, they wouldn’t be refilling the SPR.
They are also cancelling the previously planned withdrawals of 140 mb that were to take place between 2024 and 2027. They will be considered already completed as part of Biden’s 180 mb release.
US oil companies are currently producing 13.3 mb a day. The most of any country in the world. Which is one reason that OPEC has reduced their oil production. There was too much oil on the market and prices were dropping from $120 to $70. OPEC kept cutting until prices stabilized in the $80s.
You had me scared there for a minute Mish.
Are you talking about my headline?
Currency wars lead to trade wars, and those lead to world wars.
I don’t mean this from fear, I define it from historical precedent. Throughout history there are always wars, conquering, etc. We’ve enjoyed 80 years of relative peace, I’m not talking instigation like Iraq, I’m talking WW2.
It’s just a matter of time until something happens, it’s not rocket science.
Massive wars have been the way the world rebalances for thousands and thousands of years. The Bible documents many.
Eventually the debt and the strife becomes so great, violence is resorted to, and to the victor goes the spoils. Losers suffer greatly. A new currency is born and we will be long gone before we see the end of that.
Are you doubting Xi, Putin or ayatollahs’ good faith?
Don’t be so bad, Mish…
Well I’ll change directions a bit on this and say that I have never paid Mike Mish Shedlock one dime for being my #1 first go-to news source for like 20 years. I’d actually buy MishBucks so Mish could have lunch on one of his Mish Moments hikes if he had a button to buy said Mish Bucks! I’m probably not the only one who would gladly toss a few MishBucks towards SW Utah, redeemable in DOLLARS though!
Wow – Thanks
I donated a ways ago, and bought “my precious” around $700 after finding Mish and am happy for it. If we had a Mish-coin at GoldMoney or somewhere else, I’m in 🙂
The Brazilian farmer never sees a dollar in his business life, he sells to a big agro-business for Brazilian Real. The agro-business sells the product for dollars, then converts the dollars to Reals at a going exchange rate, say 1:100.
A Chinese producer sells products to a Chinese big business which does the same, but converts dollars to renminbi at a rate of 1:8.
The exchange rate is determined by and large by country’s export capacity, i.e. natural or human capital.
In a poor hellhole with neither human or natural capital, you can buy dollars, but you will spend your life savings to buy a few.
Replace dollars with gold or any other standard, say bric.
What use does the Brick provide for BF over the dollar or the Real?
My point is none.
And for the Brick to be used, it needs to make sense of both BF and CM
It’s an alternative currency that can function like the dollar, since the US has weaponized it. Other than that, it wouldn’t be necessary.
Clever article, Mish.
Thanks worked on that for a while
Thanks Mish but I suspect that you are building a straw man. Gold would only be used as a clearing lubricant:
https://econdef.substack.com/p/retail-cbdc-vs-wholsale-vs-regional
Actually they might as well call their currency a “Brick” for all the good it’ll do them. Nobody is gonna put their money in a dictator-run country or its currency, and all the BRICS are dictators (India is on its way). The dictators however will be buying LOTS of Treasuries/Federal debt/American currency with their ill-gotten gains as crooks do trust the system, just not other dictators.
The value of your currency is the gold redemption minus shipping costs, storage costs, and audit costs.
Agree 101% Eu, Japan, China in that order. AND there is more, CRE is very big issue to banks near and far.
The sh?t is approaching the fan blades.
The Pound Sterling was a gold backed currency, so was the US dollar. I can’t see a good reason why other countries can’t back their currency in gold, allowing them to buy other currency when needed by selling gold. Thus, the MishBrick, valued as so many gold grams our ounces, can be sold to purchase USD or whatever currency to trade with whoever would prefer to accept USD or some other currency. It’s this the process?
See Alan Greenspan: “Can the U.S. Return to a Gold Standard” WSJ, Sept. 1, 1981.
The only way to properly back a currency with gold is to make the currency represent a fixed quantity of gold.
a $1 bill = x ounces
If that is not the definition, then it’s not backed by gold.
Key Point: No country will ever do this because it would stop lending money into existence on the spot.
Nixon killed redeemability or the US would have lost all its gold.
My MishBuck would be properly backed but I fail to see a path forward to use it because of the key point.
The US dollar is both a national currency, and international trading and reserve currency. In that dual role lies the problem.
If there was a US dollar as a national currency, and a Dollar as international payment currency, the picture of gold backing would be more obvious.