"... The most significant change is moving gold from its tier 3 status to tier 1 capital as 100% loan-backing reserves, the same as cash and bonds. For the first time in 42 years, gold is being brought back into our financial system as money. All the world's banks are now storing this metal, not as some 3rd rate "asset," but as all the world's working capital - its money. So it's not just any voice, it is the ultimate voice on what is money that has spoken. Gold was removed from our system by Nixon in 1971, when he took us off the gold standard by disallowing foreign governments to exchange their dollar reserves for US-held gold. Ironically, they were doing this in great volume because of Washington's lack of fiscal discipline. Now, as gold has appreciated from $35 to $1700 in the unofficial gold standard interim, Washington's lack of fiscal discipline is again an issue, and we are now being forced to recognize gold as official money again.
"You probably were not aware of any kind of return to gold as official money, but these Basel III rules are set to go into effect January 1, 2013 and have prompted Brian Hicks to call it "The Secret Return to the Gold Standard." Brian Hicks is the managing editor and chief investment analyst of The Wealth Advisory. In addition, Brian is a contributor to Wealth Daily and Crisis And Opportunity. He has been a keynote speaker at international investment conferences, as well as a guest commentator on the financial television networks, CNBC, and others. Hicks was part of a small minority opinion (including me) years ago, the peak oil nuts, saying that with oil going to a then shocking $70, we were entering a new age of higher oil. This was in the face of the prevailing opinion verbalized best by Steve Forbes when he said that market forces would fix the oil "spike," and we would soon be back to a normal $40. Now we are paying $110 Brent in a really bad global economy. He was right about oil, and so far, he has been right about what is happening with gold. ..."
hat tip to www.grandich.com