Gold Standard

So the talk now is that the President of the World Bank is asking for us to go back on the Gold Standard. That money should be backed by something valuable, other than just an agreed upon thought of what it’s worth. Isn’t gold just a rock that had perceived value? Not sure how any of this really works, so I decided in the past few days to do some research on my own and see what these finance people are talking about in their down time. Downtown I went to spots that cost a bit too much but had investment bankers, NY Times Journalists and some German’s who didn’t announce who there were or what they did.

Now the investment banker – I went at him right away. guy told me he went into countries and invested in them. How do you do that I asked? How do you go and give the money to the country?

“No, No,” he answered. “we don’t give the money to the country, we give it to the bank.”

“I see. How can you make a profit off of that – just giving the money to the bank?”

“We don’t give it,” he said, a little annoyed that he had to spell it out. “We buy the bank. Okay, we buy the bank.”

For me I thought that was pretty amazing.

“So you get to travel around the world buying banks? Pretty interesting. You must meet some fascinating people. Good characters.”

He didn’t smile and seemed to be looking back at the people he met. I saw a frown, and then imagined that perhaps it wasn’t the best of circumstances that he and his investment bankers friends were walking into and buying up the bank.

“How do you know what to buy?” I pressed on.

“We look for the right balance of markets that might boom but are not to risky. That’s always the problem because we need to have them at the right price. The thing is, if it’s too low, then the situation gets out of control, we could loose it all with a revolution or something. When the killing starts to take place, that’s when it’s a problem for us.”

“Yes. Yes, I can see that,” I said taking a piece of Salami from the wax paper. “Killing is bad for business.”

“Sometimes it’s bad, but it can be good. All depends on who’s being killed. You know?”

I didn’t know, but I started to after I saw him not changing the expression on his face while taking more of the meat in front of us. These people were just eating meat and drinking. I did the same, thinking that in order to understand their mentality and become a good New York Business man, I would have to eat deli meat and drink good drinks. I pressed on the gold issue and told him that it might be a good idea for people to start carrying around little pouches of gold and scales. We could just weigh out trades. He wasn’t too into that either. Why would he be? His banks were the ones setting the prices around the world and if that ceased, if there was an agreed up money value, there would be no buying other banks because their currency wouldn’t be devalued all the time.

This was something else I kept pushing people on. How was the fact that American money being printed and pushed into the country taking away the value of other country’s moneys? The answer had to be here or on other downtown places. The Salami was burning a hole in my stomach. The fat not digesting. Good thing I didn’t have to bet on anyone being killed this day. Really. I tried to listen in to what others were saying, but when people talk money, they do this whisper thing were they lean in real close to on another and talk in hushed tones. Nobody likes it when you try to listen to these conversations either.

They are sharing a secret. I think I might be they control the value of money some how. Why are they so afraid of gold? Please, let me know where the gold talkers are. I would love to report on what they’re saying.

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