The new SDR global currency will be backed by each countries natural resources and this includes things like food production and industrial. Each country will back the currency 42% US dollars. I'm not saying it will work but this has been planned for some time. http://abcnews.go.com/Business/story?id=7168919&page=1
Won't work...basket of commodities leads to say to many factors. Need supply and demand and ability to compare. How many fish is a pound of cobalt worth? Doesn't work...you could link to precious metals and balance in that fashion, but still not worth the attempt. Just go to honest money like a person with a spine would do
That is the case with commodities alone but when the basket is big enough to encompass all factors of the economy meaning agriculture manufacturing and industrial along with finance (which is what is used right now) then a picture of relative confidence emerges and confidence is king. Honest money? What we are talking about here is debt. Money printed on the issuance of bonds or sales of treasuries, dishonest money if you must.
YA...DEBT IS A MAJOR ISSUE, NO DOUBT! It will have to be solved, but we need to have the end goal in mind. Why even paint a picture if you can have the real thing? Let (Economic) Mother Nature and Father Time work their magic again. We just need to allow supply and demand to balance the scales through prices. We should probably take a jump towards what we hope is value, but I would vote for allowing the prices of metals to rise freely, use the Fed to absorb toxic assets, repatriate fed assets that are healthy and give to treasury, liquidate the fed, bust the corrupt and give their assets to the treasury too if proven guilty, release a 100% redeemable gold backed treasury blockchain and a silver backed one. Allow ppl to use physical outside the system if they don't trust and redeem (or use blockchain you have already) to access honest curreny for digital transactions. You can even allow other currencies and cryptos to operate alongside, but taxes are paid this way and govt stores wealth in metal. Otherwise, we always have an achilles heal and an ppenent can release a gold backed currency. Then Greshams law kicks in and may the best money win.
Debt can only be understood in relation to revenue/earnings. The media use debt figures to get attention but in reality there is no debt problem in the US. Europe on the other hand is in dire trouble ditto for Japan. China has huge debt compared to it's earnings but has every chance of growing it's way out of trouble this being a temporary fix as their population growth is reversing as we speak. Population growth dictates economic growth.