Economist Alasdair Macleod today elaborates on recent observations that gold is working its way back into the international financial system, as both bank collateral and as a trade currency. Macleod writes: "The fly in the ointment is politics. Ever since the Nixon shock in 1971, the U.S. government has tried to convince the world that gold has no monetary role. It would require the U.S. Treasury to accept that gold might be superior to the paper dollar after all. No doubt that U-turn can be performed, but the concern would be that gold being officially recognized as a form of money would disadvantage the dollar and hand substantial power to the Chinese, who have been accumulating gold from their own mines."