The sun peeked out for a second from the gray mass of heavy clouds and disappeared again into the pool of the cold February sky. The sailor of the French transport ship looked disappointedly towards the gray skyscrapers of New York and trudged to his cabin. It was rumored among the crew that the ship was chock full of money: green American bills.

“So much money,” Jean thought, involuntarily spreading his hands to the side...” You can buy that dress for Marie at Galeries Lafayette, but what’s more, you can buy a whole shopping center and even more... and Jean’s hands crawled to the sides again...

Meanwhile, a tall man of mature years, straightening the lapel of his expensive jacket, which failed to hide the military bearing of the owner, looked at his interlocutor, smiled slightly and spoke in his usual confident tone:

Gold does not change its nature: it can be in bars, bars, coins; it has no nationality, it has long been accepted by the whole world as its constant value... We want to exchange 1.5 million US dollars for gold at the rate of 35 dollars per ounce!

The interlocutor’s face changed for a second, he sucked in a breath, tilted his head to the side, and hissed:

You will be in serious trouble!
- In this case, we will withdraw alliance military personnel from French territory and evacuate NATO headquarters and NATO and US military bases!

This difficult conversation took place on February 4, 1965 between General Charles de Gaulle and American President Lyndon Johnson. The result will be 1,200 tons of gold, which the French president will take home, as well as the abolition of the gold standard by America.

From early childhood he knew that he was born for something great.

The future general was born on November 22, 1890 in the city of Lisle. His family belonged to an old aristocratic family. Charles's father was a teacher of philosophy and French at the Jesuit College. Mother was a religious woman and incredibly energetic. Later, in his “Military Memoirs,” de Gaulle would write: “My father, an educated and thoughtful man, brought up in certain traditions, was filled with faith in the high mission of France. He introduced me to her story for the first time. My mother had a feeling of boundless love for her homeland, which can only be compared with her piety. My three brothers, my sister, myself - we were all proud of our homeland. This pride, mixed with a sense of anxiety about her fate, was second nature to us.”

From childhood, the boy was instilled with a love of reading; Charles rarely appeared at school, since his father preferred home education and the children often took exams externally. The boy was especially interested in military affairs, history, philosophy and literature. Later he would say about himself:

“In my youth, I was especially worried about everything connected with the fate of France, be it the events of its history or its political life. I was interested and at the same time outraged by the historical drama that was constantly playing out in the arena of political struggle. I admired the intelligence, enthusiasm and eloquence of many of the participants in this drama. At the same time, it saddened me that so much talent was wasted senselessly as a result of political chaos and internal strife, especially as the first harbingers of war began to appear at the beginning of the twentieth century. I must say that in my early youth the war did not inspire me with any horror and I extolled what I had not yet experienced. I was sure that France was destined to go through the crucible of its greatest trials. I believed that the meaning of life was to accomplish an outstanding feat in the name of France...”

In the fall of 1909, the future general entered the Saint-Cyr Military Academy, then the Higher Military School in Paris.

During the First World War he was wounded three times and captured. After his release, he returned to Saint-Cyr again, but as a teacher of military history.

During World War II, Charles de Gaulle was appointed commander of a tank brigade, and after receiving the rank of brigadier general, he was appointed deputy minister of national defense. However, as we know from history, under the aggressive pressure of the German army, France quickly lost its position. The government leadership capitulated. The population, for the most part, took what was happening for granted.

Charles de Gaulle was forced to enter into negotiations with Churchell. Later he would speak via radio directly from England with an address to his people:

“The military leaders who led the French army for many years formed a government. Citing the defeat of our armies, this government entered into negotiations with the enemy to end the fight. Of course, we were suppressed and continue to be suppressed by the enemy’s mechanized, ground and air forces. We are forced to retreat not only by the numerical superiority of the Germans, but by their tanks, planes, and their tactics. It was the tanks, planes, and tactics of the Germans that took our leaders by surprise to such an extent that they plunged them into the position in which they now find themselves. But has the last word been said? Is there no more hope? Has the final defeat been dealt? No! Believe me, because I know what I’m talking about: nothing is lost for France, we will be able to win in the future... This war will not be limited only to the long-suffering territory of our country. The outcome of this war is not decided by the Battle of France. This is a world war. Despite all the mistakes, delays, suffering, we will be able to win in the future!! »

In response to the general's emotional appeal, the French organized a fight against the Germans in the occupation zone and beyond. Petain's government, subordinate to Hitler, sentenced de Gaulle to death in absentia.

This was the beginning of the Resistance, where Charles de Gaulle led the united patriotic forces of Free France.

After the end of the war, de Gaulle will try to carry out some reforms in France, in particular, he is trying to abolish the 1946 constitution, which significantly limited the power of the head of government, but does not find sufficient support to implement his ideas. He leaves his post and settles in the village for a while, writing, reading and spending time with his family.

The Algerian crisis of 1958 helped Charles de Gaulle return to power. The bourgeois majority of parliament came up with a proposal to return him to the presidency. De Gaulle accepts the proposal and issues a new Constitution, which significantly expands his powers and limits the role of parliament.

"Economic Austerlitz" by Charles de Gaulle

Charles de Gaulle, to put it mildly, did not have a very warm attitude towards America. After France's atomic bomb test yielded a positive result, he announced his country's refusal to participate in NATO. This decision was also influenced by the visit of the French general to the USSR, where he was shown Soviet missiles with nuclear warheads, and implicitly pointed to the NATO headquarters located in Paris. In 1963, America strongly “recommended” France to participate in the creation of a “multilateral nuclear force” under the command of the Pentagon, to which de Gaulle responded with a categorical refusal. And the final touch was the withdrawal of the French Atlantic fleet from NATO command.

Naturally, de Gaulle’s policies irritated the Americans; they called him “a crazy old man.” Roosevelt and Churchill, who believed that there would be no problems with France, were constantly rebuffed by the “arrogant Frenchman,” or, as they also said, “the hidden fascist.”

But that was only the beginning. Once, former Finance Minister Joseph Caillot told General de Gaulle an anecdote: “At the Drouot auction in Paris, a painting by the famous Raphael was put up for sale. An Arab, in order to take possession of a masterpiece, offers oil, a Russian - gold, and an American, constantly raises the price and acquires Raphael for 10 thousand dollars.” “What’s the joke?” - de Gaulle was surprised. “And the fact,” the former minister answered, “is that the American got Raphael for only three dollars... That’s exactly how much the pile of paper on which all this money was printed costs.” The general was very impressed by the anecdote; he called dollars “green candy wrappers” and was preparing an “economic Austerlitz” for America.

So, on February 4, 1965, Charles de Gaulle, at a meeting with Lyndon Johnson, announced his intention to exchange $1.5 billion of French government reserves for gold, in accordance with the Bretton Woods agreement, which set $35 per ounce, which is equivalent to 1.1 g for 1 dollar. All other negotiations were left to the financial specialists of Paris. According to the rules of the Gold Pool, the exchange could only be made in the US Treasury. Therefore, first one ship “filled to the brim” with money came to the shores of New York, and then a plane loaded to the brim with green banknotes “pulled up” for the exchange. By the end of 1965, out of 5.5 billion dollars, the French had no more than 800 million left, the rest of the amount returned to the state treasury in the form of gold.

Following France, other countries also decided to pull off the “Charles de Gaulle scam”; the Germans, “envying” the resourcefulness of the French, also reached for the golden mountains of hard currency. Ludwig Erhard, Federal Chancellor of the Federal Republic of Germany, nevertheless showed ingenuity, demonstratively condemned the French for their “betrayal,” and he himself quietly collected dollars and also presented them to America for exchange. Moreover, the amount was several times more than the one and a half million dollars brought by the French. Following Germany, the central banks of Canada, Japan and other countries wanted to return the yellow metal. US gold reserves were melting before our eyes; by 1968, the treasury had given away half of its hard currency. In March of the same year, the country's leadership limited the free exchange of dollars for gold, and on August 15, 1971, American President Richard Nixon announced the abolition of the “gold standard” and with it the Bretton Woods agreement, completely uninterested in the opinions of the remaining parties to the agreement. The dollar, and all other world currencies, thereby simply turned into pieces of paper, and existed only due to the consumer’s faith in their strength.

Thus, Charles de Gaulle’s “economic Austerlitz” can be called a failure. He wanted to push the “green candy wrappers” into the background, to return the yellow metal to its former importance, but the opposite happened. In addition, several strikes soon took place in France, demonstrations and riots began; most historical sources claim that this situation arose with the help of CIA agents. De Gaulle left the presidency without waiting for the end of his second electoral term.

Due to the military power of America, as well as the influence of the NATO military bloc, the dollar has taken a leading position in international payments. Exchange rates were no longer strictly fixed and were constantly changing under the influence of various factors. It has become almost impossible to control the dollar exchange rate.

Speculators began to take advantage of the current situation, amassing huge fortunes from exchange rate movements. The foreign exchange market began a “new life”, in which an unconstrained America launched printing presses at full capacity, and tons of “green papers” flew into the world.

In the mid-18th century, the previously dominant agricultural economy lost ground and was gradually replaced by industrial production. The industrial revolution in different countries had its own characteristics, but in general this entire process can be traced back to the 19th century. Factories grew in place of manufactories, and manual labor gave way to machines. Production forces based on the machine industry were formed quickly, capitalism knocked on the doors of developed European countries, and with it a gold standard system appeared.

The gold standard is a system of calculations where a certain amount of gold is taken as a unit.

Why gold?

High cost for small quantities

Stores well

Can be easily taken apart and put back together again

Easy to recognize

Before gold, of course, there were other “metal” standards, such as bronze and later silver. But they were inferior to the yellow metal in many qualities and characteristics.

However, it turned out to be impossible to constantly use gold directly. Firstly, the quantity of goods is steadily growing, but ensuring an equal growth of “gold money” is not so easy. Secondly, gold coins do wear out, and “coin clipping” was also popular, when scammers cut off the edge and passed off a smaller coin as a full-fledged one. There were “measures of protection” in the form of notches, but they were also bypassed by drilling holes and sawing out parts, filling them with other metal. As a result, it was impossible to determine the real value of the coin. Thirdly, transporting gold is a very labor-intensive and costly process, if only because it weighs a lot. Fourthly, if a certain amount of gold is lost, difficulties arise in restoring reserves; here you cannot turn on the printing press; in order to complete the required amount, you need to look for the precious metal directly. And finally, fifthly, monetary circulation was disrupted due to the constant “damage of coins,” this is when the government elite reduced the weight of coins or the content of precious metal in them, without official notification.

Therefore, the appearance of paper money was an excellent way out of the situation, given that they were originally backed by gold. They can otherwise be called a certificate that gives its owner certain rights. When settlements took place with paper money, people exchanged among themselves the right to use a certain amount of gold, without directly transferring the gold metal itself. This was both convenient and safe for the following reasons:

Money can be of different denominations - this allows you to use it in both large and small transactions;

Paper money will not lose value when worn;

Paper money is easy to replace and restore.

Later, paper money began to be used by the government to have control over the state as a whole.

The gold standard works simply and reliably: the monetary unit issued by a country corresponds to a certain amount of gold, using these data, countries receive an exchange rate.

Officially, the gold standard was first established in 1867 by the Paris Monetary System; at the conference, an interstate agreement was drawn up, where gold became the main form of world money.

The gold standard had many supporters. Of course, the system made the economy stable, since the government could not turn on the printing press and draw more pieces of paper than there was gold to provide currency. It turns out that the amount of money was theoretically tied to the country's gold reserves. At the first request, the owner of the monetary unit could exchange for the corresponding amount of gold.

The gold standard was originally adopted in Great Britain in the late 18th century. Over time, other countries also switched to this system. First Germany (1871-1873), then the USA (1873), France (1878), Russia (1895-1897) and Japan (1897). Gold moved freely between countries and served as world money, supporting the exchange rate of national currencies of countries.

This situation continued until the First World War. Those. gold acted everywhere as money, and paper currency seemed to be its representative. At the same time, paper money was “easily” exchanged for the yellow metal, and the exchange rates were clear to everyone. This period in financial history was called the “golden age.” The time of “the freest capitalism” while maintaining a fixed exchange rate.

The collapse of the gold standard and the Bretton Woods Conference

The inflation that arose during the First World War led to the fact that it became impossible to maintain the exchange of currency for gold, and accordingly this inevitably led to the collapse of the “gold standard”. The dominant countries tried to revive it in the 1920s, at least in a modified form, but the global economic crisis that began in 1929 made this impossible. In the UK, the gold peg to the pound sterling was abolished. This period is characterized by constant adjustment of currency parities, strengthening of exchange controls and the introduction of import restrictions.

From July 1 to July 22, 1944, a conference was held in the state of New Hampshire (USA), named after the resort - Bretton Woods. 44 countries signed agreements, based on which it followed:

A troy ounce of gold costs $35;

Stable exchange rates have been determined for participating countries;

National banks maintain the exchange rate of their country, in relation to the main currency, through foreign exchange interventions;

Exchange rates can only be changed through revaluation (increasing the exchange rate of the national currency in relation to the currencies of other countries) or devaluation (decreasing the gold content of the monetary unit under the gold standard)

The main parts of the system were also organized: the International Monetary Fund and the International Bank for Reconstruction and Development. These organizations provided loans in foreign currency to support unstable currencies. Monitored compliance with the rules by the participating countries and ensured currency cooperation.

As a result of the conference, the United States received currency advantages, “pushing aside” its previously dominant competitor, Great Britain. This contributed to the establishment of the Dollar Standard. In the mid-20th century, America concentrated 70% of the world's dollar reserves on its territory. The dollar, a currency convertible into gold, became the basis of currency parities, practically the main means of international payments, reserve assets and foreign exchange interventions.

The US national currency has essentially become world money.

However, this system could only function as long as America's gold reserves ensured the exchange of dollars into gold. The collapse of the dollar was a matter of time. The American “mountains of gold” were melting, despite all the efforts of the American government. It was very problematic to directly carry out the exchange: this process took place exclusively at the state level, and only at one point - in the American Treasury. However, the situation still got out of control: from 1949 to 1970, gold reserves in the United States decreased by more than half - from 21,800 tons to 9,838.2.

The final point in this “regrettable metal leak” was put by the French President Charles de Gaulle, and it is this “strategic event” that is described above.

Additional reasons for the crisis:

The 1967 currency crisis coincided with a decline in economic growth;

Increased inflation had a very negative impact on the ability of firms to compete. “Hot” money moved speculatively due to “exchange rate distortions,” which, in turn, appeared due to different inflation rates in different countries.

The currency crisis due to speculation worsened in the 1970s. The dollar appeared in excess in one country or another, causing economic instability.

Currency fluctuations were also exacerbated by chronic deficits in some countries and surpluses in others.

Failure to comply with the principles of the Bretton Woods system. The economies of the USA and Great Britain were weakening and they tried to compensate for the decline by issuing national currencies; this was contrary to the interests of other countries.

The influence of transnational corporations (TNCs). TNCs are organizations with short-term assets in different currencies. They may exceed the reserves of banks in the countries in which they are located, thereby escaping national control. TNCs are also involved in currency speculation on a large scale.

Thus, there was a need to revise the existing monetary system. Its principles no longer corresponded to the reality of that time.

A completely new currency order, taking into account the transition to floating rates, was secured by agreements signed at the conference in Kingston.

The amended IMF Charter confirms that the currencies of various countries are not tied to gold, and, accordingly, excludes the possibility of establishing a fixed ratio of currency pairs based on gold parity. Thus, the Jamaican monetary system replaced the Bretton Woods system.

The consequences of abandoning the gold standard were not long in coming. The balance in economic relations between world states has been sharply disrupted. Lending volumes surged as large amounts of the dollar currency exported by the United States remained in the reserves of central banks around the world.

America's lending grew unabated, and member countries began hoarding dollars. The rest of the world also accumulated “green paper,” because if dollars were scarce and reserves did not grow or even fell, speculators could bring down the currency of that country by devaluing it.

The strong influx of US currency around the world contributed to an increase in the volume of global credit, which continued to grow until 2007. Banks were constantly trying to increase profits, lending was in full swing.

America, distributing its own non-convertible money to the whole world, popularized globalization and free trade. States spent money “right and left.” In the 1990s, the foreign trade deficit crept up to a critical level, but absolutely no action was taken to correct it.

There is, of course, nothing wrong with free trade. In theory, each country produces a certain useful product and then exchanges it for a useful product of another country, through commodity-money relations. However, such a scheme is only possible with the functioning of the gold standard. When such relations were being formed in the world, it was difficult to imagine that in the future everything would be turned upside down and mutual payments would be made using unsecured money created on the initiative of one country.

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Moscow, March 16 - "Vesti.Ekonomika". Because the global supply of gold is growing very slowly, adherence to the gold standard could theoretically curb government overspending and inflation. Today, no country in the world backs its currency with gold, but many have done so in the past, including the United States.

Throughout history, gold has been used as a currency, a medium of exchange and a store of value: the value of any good or service on the market was based on the price of gold. Since it was difficult to weigh gold without proper equipment, coins of different denominations were immediately minted. The earliest known mention of gold coin trading dates back to 643 BC. e. in Lydia (modern Türkiye). Since at that time the value of coins was determined by the value of the metal, the country with the most gold had the most wealth. This is what began the race between countries for the New World in search of gold.

The gold standard is a monetary system in which the unit of account is a standardized amount of gold, that is, the value of the currency is directly related to the value of gold. A country on the gold standard cannot increase the amount of money in circulation without also increasing its gold reserves.

Many consider the gold standard to be the beginning of the US monetary system, but the first standard was the bimetallic standard, where both gold and silver were used as currency. It functioned from 1792 to 1834.

Bimetallism

In 1785, the US government adopted its own currency, after which in April 1792, Secretary of the Treasury Alexander Hamilton passed the first coinage act, according to which $1 was equal to 371.25 particles of silver minted into a coin of 416 particles. Gold coins were used to represent amounts of $2, $5 and $10. The minting of the first US dollars began in 1794; before that, Spanish coins were in circulation.

The main problem with using this system was foreign currency and the fluctuation of metal prices in various world markets, which led to a complex settlement system. As silver became cheaper, it was used almost exclusively for domestic purchases, while gold was intended to be imported from abroad. Essentially, the US economy ran on the silver standard for the first 40 years. At the same time, the exchange of pure metals between sellers continued on the market.

1834 - transition to the gold standard

In 1834, Congress took steps to correct the problems caused by the price of silver and gold and restore the use of gold coins for domestic transactions. To achieve this, the amount of gold in gold coins was slightly reduced. In addition, the requirements for the minting of gold and silver money were changed.

The positive effect of these decisions was short-term: very quickly the population discovered that the innovations were convenient for paying off debts that existed before the gold content was adjusted. This way, people were able to pay off their existing debts with slightly less money than they would have had to spend before the change. As a result, this led to a decrease in gold prices compared to the price ratio on the world market. As a result, in the USA only gold was used for transactions.

By 1850, almost no one used silver coins, and they completely disappeared from the market. This became a problem because there were no gold coins equivalent to $1 in the country. As a result, another act was issued in 1853 to issue new silver money for transactions under $5.

1862 – issue of paper banknotes

Until 1861, the United States did not actually have a unified banknote system. On July 17, 1861, Congress passed an act requiring the Treasury to issue new banknotes. For the first time, paper money was issued without being converted into silver, gold, or any other metal, making it the first official paper currency (the United States briefly abandoned the gold standard during the Civil War).

Although the United States did not have paper money recognized as legal tender before the Civil War, the country did have many varieties of it (Treasury notes and bills). The purpose of this paper money was to record the promises of one party to pay in gold or silver to the other.

1879 - "classical" gold standard

When the Civil War ended, Congress decided to return to the metal standard, determining the market rate of the dollar to gold and gradually removing the dollar from circulation. By 1879, the government had achieved full parity between gold and the dollar, which meant the country was officially back on the gold standard. However, paper money also existed and was legal tender. Period from 1879 to 1913 considered one of the most economically stable in American history.

1900 - second gold standard

Many silver producers and the public believed in cheaper money and wanted silver to return to its original status. This situation caused serious concern to the US government, which was not interested in returning to the silver standard. To appease silver producers, the United States Treasury decided to purchase the metal and mint silver dollar coins. But their value was kept at an artificially high level (much higher than the market value) in order to equate one to one with gold.

By 1900, the reversion to a dual currency standard in the United States began to cause concern. To alleviate these concerns, the government created the “Gold Standard Act,” which declared the gold dollar to be the standard unit of account and any type of money issued by the government to maintain parity with gold. However, silver dollars remained legal tender.

1913 - Fed era

In response to periodic banking panics and dwindling gold reserves, the Federal Reserve System was established as lender of last resort. The Federal Reserve's functions included not only maintaining the gold standard, but also regulating the issue of Federal Reserve notes, which were 40% backed by gold.

1928 - Gold Standard and Great Depression

During the height of the Great Depression, the United States again had to abandon the gold standard. After the stock market crashed in 1929 and the price of gold rose, people in droves wanted to exchange their dollar savings for gold. The situation worsened after the bankruptcy of a number of banks. People tended to keep their savings in gold because they did not trust any financial institution.

The Fed continued to raise interest rates in an attempt to increase the value of the dollar, which subsequently made the economy worse by increasing the cost of doing business. Many companies went bankrupt, creating record levels of unemployment in the country.

1933 - gold is outlawed

“The free circulation of gold coins is not necessary,” said President Franklin Roosevelt. He nationalized gold by issuing an executive order (the "Gold Reserve Act of 1934") requiring all gold coins, bars and certificates to be turned over to the Federal Reserve at a price of $20.67 per ounce. Hoarding gold in coins or bars was punishable by a fine of up to $10,000 and/or imprisonment. The United States soon held the world's largest reserves of gold. By the time banks reopened on March 13, all of their gold had been transferred to the Federal Reserve. Banks could no longer redeem dollars for gold. Moreover, no one could export gold. The Great Depression ended in 1939.

1944 - Bretton Woods Agreement

Representatives from the United States and 43 other countries meet in Bretton Woods, New Hampshire, to normalize commercial and financial relations. The United States held most of the world's gold. As a result, most countries simply pegged the value of their currencies to the dollar rather than gold.

The Bretton Woods Agreement of 1944 established the exchange value for all currencies in terms of gold. Each currency has a fixed parity to the dollar, which is pegged and can be exchanged for gold at $35 per ounce. (However, this does not apply to Americans, who still cannot hold gold.) The dollar becomes the world's reserve currency.

Central banks maintained fixed exchange rates between their home currencies and the dollar, purchasing their country's currency on foreign exchange markets if their currency became too weak against the dollar. If the exchange rate, on the contrary, rose, they additionally printed national currency and sold it.

The end of the gold standard

In 1960, the United States had gold reserves of $19.4 billion, including $1.6 billion in the International Monetary Fund. This was enough to cover $18.7 mkhl in foreign currency equivalent. However, Americans bought more imported goods using dollars, leading to large balance of payments deficits. This raised concerns that the US would no longer be able to back the dollar with gold. In addition, the Soviet Union became a major oil producer and placed its dollar reserves in European banks. These reserves became known as Eurodollars.

By 1970, the United States held only $14.5 billion in gold versus $45.7 billion in foreign currency equivalent. At the same time, President Nixon's economic policies led to stagflation. More and more banks were buying back their assets in exchange for gold. As a result, the United States could no longer fulfill its obligations.

1971 - closing of the "golden window"

On August 15, 1971, President Richard Nixon closes the gold window: he changes the dollar/gold ratio to $38 an ounce. The Fed no longer had the right to buy dollars in exchange for gold. This made the gold standard meaningless.

Most countries' currencies are not backed by gold reserves. There is also no link between the ruble and gold. The gold reserve available in Russia is not enough for this: even if the ruble backing is implemented, it will amount to about four percent. The only opportunity to do this is only in cases of global changes in the economy, but it is very difficult for the state to decide on such drastic actions.

Nowadays, the ruble is not tied to gold.

How was the ruble secured?

The ruble as a monetary unit was introduced into circulation by Peter I and was minted from silver at that time. The raw material for the coins itself confirmed its status as a solvent unit. Then banknotes appeared in circulation, which very quickly depreciated and were not trusted even within the country. The only attempt to peg the ruble to gold was made at the end of the 19th century and ended very successfully.

Gold coins came into circulation and could be freely exchanged for paper money. The 1:1 ratio was not violated. In the pre-revolutionary period, the ruble's supply of precious metals reached 150%. This entire system, which was finally put into operation, collapsed after the revolution, when a political crisis reigned in the country and the economy was practically destroyed.

Ruble from the era of Peter Perov.

The fact that a currency is endowed with resources or a state reserve is usually assessed positively. According to world practice in recent years, a currency can be stable even without collateral. An example is the euro. This currency is not tied to the national economy, much less has any backing, but is quite successfully used and converted.

The Russian ruble is not backed by gold. Among the factors that provide the national currency, analysts name a large amount of foreign currency - the receipt of dollars from the sale of energy resources. Modern realities of geopolitics and economics force government authorities to think about stabilizing the ruble by other means. Is it possible to introduce backing of the Russian ruble in gold again?

Is a return to the gold standard possible?

In the context of sanctions from Western countries and comprehensive pressure on the Russian economy, the idea of ​​abandoning payments in dollars is heard more and more often and more insistently. As an analogue, a currency system based on collateral in the form of yellow metal is proposed.

The introduction of sanctions against Russia is pushing for a discussion of the gold backing of the ruble.

Some actions of the Russian authorities indicate that work in this direction is underway. A weak ruble becomes a threat to the development of the domestic economy, prompting the Central Bank to raise rates. In the short term, the weakening of the ruble will not bring anything good, and the Central Bank of the Russian Federation cannot endlessly raise rates to protect the currency.

The situation is complicated by the sanctions imposed against Russia: the ruble has fallen over the past year against the dollar by more than 30%. The pricing of the ruble in American dollars occurs through foreign exchanges, which also does not strengthen Russia’s position. A currency war threatens serious economic problems, so many experts express support for the option of returning to the gold standard.

Options for creating gold collateral

How can the ruble be pegged to gold? With the Russian economy at 2 trillion. US dollars, external public debt is about 378 billion. Foreign exchange reserves are approximately 429 billion dollars, of which about 45 billion are stored in the form of real precious metal. The budget deficit will be about 1% of GDP in 2015. These conditions suggest that the gold standard can be introduced and successfully used for a long time. The two main conditions for its success will be strict adherence to budget discipline and strict control of the credit sector.

By setting ruble-to-gold conversion rates, the Central Bank will be able to use all its powers to manage currency liquidity. Authorities will no longer be limited to gold buying and selling transactions.

One option could be the issue of coupon bonds, the yield on which will be tied to gold.

Managing the ruble exchange rate under the gold standard will cause some difficulties, but with the competent work of the Central Bank, they can be resolved. Lending growth will have to be limited, otherwise the entire created system will be at risk. The massive conversion of rubles into precious metals can be regulated by withdrawing the currency from circulation.

In general, pegging the ruble to gold is quite possible with the implementation of some economic reforms.

The main threat to the gold backing of the ruble is the central banks in London and New York, which can buy rubles and present them for exchange for the yellow metal. But this possibility can also be limited by introducing special rules.

It is unclear whether the ruble will be backed by gold or other collateral in the near future. The assessment of the consequences for the country's economy is as follows: with the introduction of the gold standard, the ruble should stabilize. This will mean that the increase in the cost of living will slow down markedly, and domestic savings will begin to grow. Ideally, this could lead to political consequences: lower government spending on social security, the establishment of monetary stability and low taxes. All this should create conditions for the creation and further development of a strong production basis for the domestic economy.

Critical view

Some experts view the return to the gold standard critically. The history of economics knows positive examples of such government actions, but now is a completely different time. Factors that correspond to the actual state of the economy should be taken into account.

The transition of the world's major economies to being backed by gold will be the moment of collapse of the system based on settlements in American currency.

Monetary-type inflation will create uncertainty risks for capital investments and effectively destroy savings, which are vital for financing. Some believe that currency management cannot lead to economic growth.

But the real situation is that if the countries with the largest economies in the world begin the transition to the gold standard, this will mean one thing - the end of the dollar-based currency system. Whether the ruble will be tied to physical gold or not depends on the decision of government authorities. The decision must be made taking into account the size of actual budget expenditures and the presence of long-term obligations.

Such steps by individual countries will lead to a split into two camps: some will use the gold standard, while others will not be able to do this or simply will not want to take this step.

China's policy of increasing its gold reserves and increasing production volumes could make the yuan an international currency and a competitor to the dollar.

Among those states that can do this and are systematically preparing for the introduction of the gold standard is China. The demand for gold from China in recent years has always been one of the highest; government policy is aimed at accumulating gold reserves and stimulating private investment in the metal. These measures allow the Chinese economy to protect itself from external and internal negative factors.

Chinese authorities often blame American policy for the current situation in the gold market. The US is using its huge gold reserves to suppress other currencies in order to maintain the dollar's leadership. Further strengthening of the Chinese economy may allow the internationalization of the yuan, which will become a competitor to the dollar.

Gold has historically played an important role in protecting the economic security of the state. The introduction of a gold standard, taking into account all the accompanying restrictions, can really save the country's economy in times of crises and wars.

There is another opinion regarding the introduction of the gold standard. Economists say that such a monetary system will not be sustainable, since the supply of money will be controlled not by banking institutions, but by mining companies. The price of gold will constantly change, especially depending on the discovery of new deposits of the precious metal, and inflation will be replaced by deflation.

Of course, the volume of production of the yellow metal will affect the economy, but not as dramatically as the “printing press” of the US Federal Reserve.

This development of events is possible, but has several open questions. The rate of gold production is growing much slower than the US Federal Reserve's money printing is increasing. Such actions always lead to inflation and undermine the stability of the monetary system. Under the gold standard, it is simply impossible to make money indefinitely.

conclusions

Is the Russian ruble backed by physical gold? No, today Russia does not have a monetary system based on the gold standard. Theoretically, such a fundamental economic decision can be made; the current geopolitical situation and the state of the gold market allow this to be done. Such measures will require strict regulation of the credit sector and a systematic policy regarding the regulation of the ruble exchange rate from the leadership of the Central Bank.

44 years ago, on August 15, 1971, US President Richard Nixon abolished the “gold standard,” thereby finally nullifying any backing for the dollar, and indeed all world currencies in general. From that day on, money turned into pieces of paper and was supported only by the faith of consumers in their solvency. Paradoxically, few people noticed this revolution.

A little history

In its familiar form, the “gold standard” arose in the 19th century in connection with the industrial revolution in European countries. Growing production volumes required expansion of sales markets, which resulted in the rapid development of international trade. And there was a need to find the most convenient tool for mutual settlements. Such a tool was the linking of national currencies to a fixed amount of gold: it made it possible to easily track the mutual rates of any currency pairs and quickly determine the trade balance of each state (the relationship between the value of imports and exports).

In 1867, all this was finally consolidated by the Prague currency system. But at the beginning of the 20th century, most countries could not cope with the costs associated with the First World War, and untied their currencies from gold in order to print money in unlimited quantities. The only currencies that remained pegged to gold were the American dollar and the British pound. They began to acquire the status of an international means of payment. As a result of the Genoa Conference of 1922, the system became official and was called the gold and currency system, or gold exchange system. But then the Great Depression (1929–1933) struck the United States, money depreciated sharply, and the same “leading countries of the world” also refused to link their currencies to gold (England in 1931, the USA in 1933).

This, of course, did not lead to anything good, and a year later, on January 30, 1934, President Roosevelt ratified the Gold Reserve Act, according to which the dollar was again tied to gold at a fixed rate - $35 per troy ounce. In July 1944, at a conference in Bretton Woods (USA, New Hampshire), the monetary system now known as the “gold standard” was finally adopted. The currencies of 44 countries around the world were pegged to the dollar at a rigidly established rate, and the dollar was pegged to gold (according to the “Golden Act”).

Why was the gold standard abandoned?

It is generally accepted that Washington’s abandonment of the “gold standard” was a reaction to French President Charles de Gaulle’s attempt in 1968 to “accumulate a shipload of American currency and immediately demand that the United States exchange it for gold.” By the way, in two years he managed to buy more than 3 thousand tons of this precious metal from the United States. However, the real reasons were completely different.

The fact is that the suspicions that the number of dollars in circulation did not correspond to the volume of US gold reserves were well founded. Although the American economy was the world's leading economy after World War II, in reality its foreign trade led to a drain on gold. On the other hand, according to the established rules, the Americans were not obliged to disclose the size of their gold “piggy bank” and therefore even then they could print slightly more green pieces of paper than was allowed. And, finally, due to the fact that the economies of many countries were so heavily “saturated” with the dollar that even without gold backing they could not refuse it, the idea of ​​​​abolishing the “gold standard”, which would completely untie the Americans’ hands, was literally in the air . Realizing all this, the US government without hesitation took a step unprecedented in its impudence and unilaterally announced a complete abandonment of the “gold standard”.

The following two facts make this situation even more striking. First: at that time, the lion’s share of the world’s gold was stored in the United States, and no one had access to it. (By the way, the Germans still don’t have it.) Second: American money, in essence, is not even American. These are just debt obligations of the 12 largest private commercial banks with federal agency status (FRS).

However, why the US decision did not cause any serious protests from other states is quite understandable. Because everyone wanted to cheat in solving their own economic problems by issuing unsecured banknotes.

What did we pay for this?

Imagine a flying airplane that has 197 steering wheels - one for each country. And everyone is trying to control the winged car in their own way. But the degree and sphere of influence of the helmsmen is different. Some people have a fuel line tap in their hands instead of a steering wheel, others have a curtain for supplying air to the engine, etc. Some pilots want to fly to Honolulu, others want to fly to Nairobi, and others want to land immediately. Can you imagine the final trajectory of this flight? This is the overall rate of the world economy.

The economy, divorced from clear and stable guidelines, has ceased to provide adequate signals for making management decisions. In six years, the United States simply printed money out of thin air in the amount of 23% of its GDP, and the euro system, which at first glance seemed to be more protected from fraud, turned out to be doing the same thing. By the end of 2016, “using American QE technology” it will “print” 10.2% of the EU’s GDP.

Anyone interested in the development of the global economy needs to understand the historical background that led to the current situation. To understand the causes of the crises that have arisen, which have shaken more than one state, we need to look for the causes in the past. One of the most important principles of modern economics has become the gold standard.

What it is?

The gold standard system is an international monetary system that is based on the officially assigned gold content of each individual unit of a national currency. Central banks of states are obliged to carry out purchase and sale transactions of national currency in exchange for this metal. That is, in essence, we are talking about a fixed exchange rate of national monetary units that was established in relation to it. The terms of the gold standard implied that anyone could exchange a banknote for an appropriate amount of the precious metal at any time.

For example, the 1928 US $20 bill was equivalent to one troy ounce of gold (31.1 grams).

Thanks to the introduction of such a standard, the national currency could be freely converted into valuable metal within the country. The state could also regulate the exchange rate due to the inflow or outflow of precious metals, without limiting its export or import. This approach made national currencies very stable.

The essence of the gold standard is quite simple, but it helped solve many economic problems of the time. Unfortunately, modern realities demanded changes, and this system had to be abandoned.

History of origin

The century of its existence was short-lived, but it radically changed the world monetary system. The first country to introduce the gold standard was Great Britain. This happened in the 19th century. The development of the gold standard in the world has acquired an avalanche-like character. The USA, Germany, Belgium, France and other countries have adopted this economic principle. At that time, it was the gold standard that ensured stability and economic development. It was introduced in Russia by the famous reformer, Minister of Finance Sergei Witte. In 1898, Tsarist Russia allowed the sale and purchase of gold coins.

When did the gold standard end?

Historians and economists talk about two stages in the implementation of the gold standard - from 1880 to 1914, that is, before the outbreak of the First World War, and from 1925 to 1934. The first stage is characterized by rather small government budgets, low inflation, and more or less uniform economic cycles. London at that time was the center of financial life and regulated many areas. Each state had at its disposal a sufficient supply of gold for the functioning of the system. But at that time, the first problems had already appeared: the minting of coins did not keep pace with the pace of economic growth and could not fully meet the growing needs.

The First World War and the economic chaos inherent in any military action put an end to the first stage of the gold standard. In the mid-20s of the last century, Great Britain tried in every possible way to restore its existence, but then a large-scale economic crisis intervened - the Great Depression. Some countries tried to stabilize the situation through the gold exchange system. It means that the exchange rate of the national currency is pegged not to gold, but to another currency, which is nevertheless backed by this precious metal. But the national currency could not be directly exchanged for it. European countries relied on the pound sterling.

However, Great Britain itself in the early 30s abolished the gold standard, which it had once introduced first. The reason for this was that many European states had accumulated a significant supply of pounds sterling and exchanged it in London for the precious metal. Thus, the country's gold reserves began to decline rapidly, which, of course, could not be met with approval.

Reasons for cancellation

There were many reasons, but the main contribution was made by great upheavals in the form of the largest war in Europe in history (at that time) and the economic crisis. The gold standard, which worked well in stable circumstances with predictable developments, became a liability in troubled times.

High post-war inflation had a decisive influence on the decisions of many state leaders. The result was the abolition of the rigid peg of national currencies to gold.

Advantages

One of the main advantages, of course, is ensuring the stability of exchange rates. Countries that introduced this system gave impetus to the development of international trade, the volume of which was constantly growing. Exchange rates were easily predicted, and this gave confidence in the strength of trade relationships and the ability to fulfill their obligations. Also, balance sheet deficits were almost automatically eliminated due to the free import or export of gold outside the country.

Flaws

There is no financial system that does not have its shortcomings. This also applies to the gold standard, which, unfortunately, limited the maximum possibilities for economic growth by the volume of reserves of this metal held by the state. There is also a risk of significant depletion of such strategic reserves if the demand for foreign currency exceeds supply. This made states potentially vulnerable.

Bretton Woods Agreement

After World War II, it was realized that a new economic model was needed for battle-torn states and their economies. A year before the end of the war, a major international conference was held in the small American town of Bretton Woods, in which 44 states, including the USSR, took part. It determined the main features of the future economic system. No one expected to return the classic gold standard. The economies of many European countries were devastated and could not support the provision of national currencies with hard metal. But nevertheless, the principles remained. Now national currencies were tied not directly to gold, but to those currencies that were backed by it. By the end of the war, only two countries could offer their currencies as starting points - Great Britain and the United States. However, the role of Great Britain was shaken by a serious crisis that broke out in the country in 1947. Since then, the American dollar has performed this function.

Development and collapse of the gold and exchange system

Despite the brilliant prospects, the gold standard has lost its original meaning. As part of the agreements reached at Bretton Woods, it was the dollar that replaced gold and began to play the role of the world reserve currency. However, some restrictions have been introduced. For example, the national currencies of countries were equated to the dollar at a certain rate, and exchange rate fluctuations had to remain within 1%. At the same time, the United States assumed obligations to exchange dollars for gold without any restrictions. This system was called the gold exchange system. It is more complex than the original gold standard, but economic and political realities required new solutions.

Prospects for the standard in the global economy

The gold standard was of great importance for the development of the economies of individual countries, as well as for understanding the interdependence of states on general trends in the world economy, from which one cannot isolate oneself.

It was the first principles that made possible the emergence of a new economic model for regulating national currencies. By the way, it was during the Bretton Woods Conference that it was decided to create the International Monetary Fund and the International Bank for Reconstruction and Development. The latter is often called the World Bank, which indicates its role and influence on ongoing processes.

The Bretton Woods system existed until the mid-60s, when there was an understanding of the need for further reforms due to changed circumstances.

In the mid-70s, the Jamaican Conference took place, the results of which are still valid today. It was she who finally abolished the gold backing of national currencies, and also abolished the officially established price of gold, which became an ordinary commodity. Its price was regulated by the usual market principles of supply and demand.

From time to time, politicians and economists talk about the need to return to the gold standard, but so far modern economic realities do not allow these plans to be implemented.