[of gold with that of Zurich shows that…]
Socialist Press1978 1978-05-03Read it in the scan (PDF), scan page 4 →
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of gold with that of Zurich shows that the in the value of currency more than changes TL.. 1976 Souree: BANK HOFMANN, ZURICH Comparison of the London p ice fluctuations are due to variati SUC Holders of currencies and other paper money assets fled to the haven of gold as the ultimate store of value.
The fact that the latest round of instability finds not only capitalist speculators doing this but also central banks shows how difficult it is for the US government to demonetise gold.
It is the relative weakness of US imperialism which makes this a desirable objective for US capital.
After the depletion of the gold reserves, the US hopes it can restore its domination of the monetary system through its especially strong influence in the International Monetary Fund whose SDR's (Special Drawing Rights) are intended in the long term to become a new world paper money to replace i gold.
As we go to pres the editors of two maga ines 1977 But the US is afraid of its own solution since it fears that it would be inflationary.
And most other capitalist countries are showing themselves totally opposed to the replacement of gold.
The total quantity of gold in monetary reserves is now about 1 billion ounces of which the US holding is only about 14%.
Revalued
And under the new IMF regulations introduced in April this gold can now be revalued at its current market price instead of at the "phantom" official price of $42 which has existed since the crisis of 1971 land which the US government still uses).
is not only its relatively small holdings of gold which have persuaded the USA to try to 1978 demand for gold remove it from the world monetary system but also the fact that the world's two major producers are South Africa and, more significantly, the USSR-while the US itself does not produce gold.
The future of gold, therefore, remains uncertain. Its price is however not some mystical thermometer of the temperature of capitalism as is sometimes depicted.
But it does reflect the development and movement of the capitalist crisis-in particular the growing relative weakness of US capitalism and the sharpening inter-capitalist rivalries to which the crisis is giving rise.
One thing is certain, therefore: gold will continue to obstinately refuse to obey the orders of the Carter administration that it become "a commodity like any other"