I believe in freegold as per FOFOA. That said, take a look at this very interesting view of the Euro vs. the Dollar, and how both relate to Gold and ultimately, free gold. The topic is too complex to really synopsize as it took a long time reading his stuff to understand it, but it is worth the effort:
Freegold and the Euro
He's taking the stuff Another and Friend of Another wrote in 1999-2001 around the birth of the Euro and extrapolating it to today without the benefit of watching the Eurozone implode in realtime.
Well it's becoming clear from all the latest bailouts in Europe that the Euro is just another fiat trash currency to which the gold "backing" means absolutely nothing meaningful, any more than the US gold supplies (such as they are) mean anything for the US dollar.
As long as the value of the gold assets on the ECB's balance sheet mirror the debt it's all well. However reference point gold will only truly work along with a gold market free from short sellers and futures speculators. A free gold market is now slowly evolving into a reference point gold standard where debt can be offset by gold, and the currencies fluctuate with the flow of gold. However it wont force discipline on the issuing of debt money (it only encourages monetary discipline), so we will still get credit cycles with booms and bust. So in the end everybody should be happy!
My feeling is the only way we get anything resembling freegold is with a complete collapse of the banking and financial central planning institutions.
I owe FOFOA a lot for being the one who explained / convinced me the nature of the endgame (hyperinflation and currency collapse) but I think a lot of his thinking (silver is only an industrial metal, floating fiat currencies against freegold, etc.) just don't add up. Why would anyone want to hold or be payed in or have contracts in fiat trash in a freegold world?
I see the future as being more along the lines of multiple "goldmoney" providers so we can keep the infrastructure of debit cards etc. but backed by real money (gold and silver). And probably a decentralization of government back to the size of city-states. And I suspect a silver / gold ratio somewhere in the 1:10 area with a lot more silver circulating than gold. The whole notion of central banks uber alles forever I don't buy -- I mean it is the CB / printed money / bloated enormous government system that is failing here.
Given my opinions, I'm currently trying to stack about 2/3 gold to 1/3 silver (by value).
I agree CB's and governments are of diminishing value, and will self destruct. I see however a dollar hyperinflation, and a Euro stabilisation. But i think it will take some time say 10 - 15 years, and a lot of defaults for a good Freegold system to work it self out.
As for the gold /silver ratio 1/7. But gold will lie very still, and silver will move and be the love of speculators.
FOFOA's anti silver stance does not reflect the thoughts of Another. As far as i read them he included respect for silver as money. The Chinese silver sycee ignot was official in money in china for 250 years, and may be official money again.
From all appearences, Robert Zoellick and Jim Sinclair are both RPG advocates.
Check out the last 2 min. (starting at about the 7:50 mark).
PARIS, Dec 22, 2010
"World Bank President Robert Zoellick reaffirmed his proposal to use gold as a "reference point" to reform the current international monetary system on Wednesday in Paris.
"What I suggested is that gold serves as a key reference point to allow people to assess the relations between different currencies," Zoellick told the press here at the end of his meeting with French President Nicolas Sarkozy in the Elysee Palace.
"It's an approach that we can take, others also estimate that we can establish a benchmark against prices of principal commodities," the World Bank president said in response to a journalist's question.
I'm just an "A" "FOA" "FOFOA" noob but with 14 years of hindsight it looks like "A" and "FOA" were worth listening to.