World Bank president talks “global gold standard,” while China ratings agency downgrades America.

• World Bank President Calls for Consideration of Global Gold Standard.
• China Ratings Agency Downgrades America.
• Brazilian finance minister warns of “currency war.”

From DATELINE ZERO - Going off the gold standard was a terrible idea. And the consequences are really beginning to show themselves now.

Rawstory.com:

Robert Zoellick, president of the World Bank, shook up the world of international finance and central banking on Monday when he called for consideration of tying currency values to the global trade of gold, in hopes of producing more stable economies.

Basically, he called for the G20 to discuss establishing a global gold standard as part of an ongoing refashioning of financial markets — and his remarks sent prices of the shiny metal soaring.

Also today:
China Ratings Agency Downgrades America…

There’s a conflict in the works, and it includes threats being made by countries otherwise seen as allies. But they are all being threatened by what they see as irresponsible behavior by too many people within the U.S. government, and decades of scheming.

A lot of the problem is hinged upon the lack of a gold standard. Right now the dollar is largely worth whatever the U.S. Government can convince people it is worth. In other words, the Dollar’s value is having trouble partly because the word the politicians has very little value today.

Here are some other recent headlines, going into the weekend of Nov 5, show anxiety over the U.S.’s negative economic influence…

UP. UP, UP: Stocks at Highest Since LEHMAN’s Fall…
Jobless claims higher…
Oil six-month high…
Gold new high…

Backlash builds against Fed pumping…

The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.

The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets.

China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.

Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency war”, said: “Everybody wants the US economy to recover, but it does no good at all to just throw dollars from a helicopter.”

…

An adviser to the Chinese central bank called unbridled printing of dollars the biggest risk to the global economy and said China should use currency policy and capital controls to cushion itself from external shocks.

“As long as the world exercises no restraint in issuing global currencies such as the dollar – and this is not easy – then the occurrence of another crisis is inevitable, as quite a few wise Westerners lament,” Xia Bin wrote in a newspaper under the Chinese central bank.

Korn Chatikavanij, Thailand’s finance minister, said the Thai central bank had told him it was “in close talks” with regional central banks over measures “to prevent excessive speculation.”

The renewed tension is likely to complicate US efforts to get leaders of the world’s leading economies countries meeting in Seoul next week to press China to sign up to a new accord promising to limit current account balances.

Brazil ready to retaliate for US move in ‘currency war’…
CHINA WARNS FED MOVE ‘HUGE RISK’…
Germany Concerned…

RELATED: US Gov’t Plans To “Rebalance” World Economy…