When the 11th President of the World Bank and former managing director of Goldman Sachs suggests that gold should be used as an international current metric of value, it is time to take notice. To say this guy is a Wall Street and government insider is like saying that the Pope has some pull in Rome.

Robert Zoellick stated the following in FT article called "The G20 must look beyond Bretton Woods" on Nov. 7th @18:10:

"Fifth, the G20 should complement this growth recovery programme with a plan to build a co-operative monetary system that reflects emerging economic conditions. This new system is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi that moves towards internationalisation and then an open capital account.
The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."

Four hours later, to be certain that the one point was emphasized and not to be missed, reporter Alan Beattie in Washington wrote: "Zoellick seeks gold standard debate". A bit more spin than I would have given it to be certain, however quote noted:

"Mr Zoellick, a former US Treasury official, calls for a system that “is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi that moves towards internationalisation and then an open capital account”. He adds: “The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”

and...

“The scope of the changes since 1971 certainly matches those between 1945 and 1971 that prompted the shift from Bretton Woods I to II,” Mr Zoellick writes. “Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”

Whats up here? Anyone else getting a slight case of the heebie jeebies?

First Jim Cramer promoted the buying of silver and gold on his program (with token hot blonde, Amanda Drury).

I guess when the Sage of Omaha jumps off his mountain of FRNs on to the rolling gold flatbed, then it's probably time to trade any remaining paper gold for physical in hand.

Does something smell funny to you? Smells like the canary droppings are getting deep. QE2 may just be the beginning (of the end).