[Analysis of the Impact of Constant Gold on the Economy II]
II. Restructuring of the International Financial and Trade System
1. The Cost of Exchange Rate Stability and Trade Imbalances
The Return to Fixed Exchange Rates: National currencies are pegged to gold content, and exchange rate fluctuations disappear, but at the cost of sacrificing economic autonomy. For example, the Bretton Woods system required member states to strictly adhere to exchange rate bands, which eventually collapsed due to the US fiscal deficit (gold outflow).
Escalation of Trade Protectionism: Countries with current account deficits experience gold outflows and are forced to adopt tariffs or capital controls. Similar operations to Trump's imposition of steel tariffs in 2025 may become normalized.
2. Competition for Reserve Assets and Geopolitical Conflict
Gold Reserves = Financial Power: The United States' 8133 tons of gold reserves (accounting for 23% of global official reserves) will give it absolute dominance. Emerging countries need to purchase gold at high prices (such as the People's Bank of China's recent increase to 2269 tons), triggering a resource war.
Reserve Authenticity Crisis: If rumors of a "empty vault" at Fort Knox turn out to be true, global trust in the dollar will collapse, triggering a reorganization of the monetary system.