I think China and Russia are in the process of backing their currencies with gold and I do think we need real interest rates. I think the first thing we need is the return to the rule of law. Until this is done nothing will work.
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100% agree with you. The core of many of the ills is the absence of the rule of law.
Moreover, China and Russia can now, at any moment, instantly back their currencies (at a much larger percentage rate than the US could, given their respective money supplies). I think it is just a matter of time until they do so. For the moment, China doesn't want to upset the markets to much which could cause domestic instability (their #1 concern); so they will hold off on any gold backing (or revealing of their reserves) for likely a few more years.