The path of least resistance taken by Russia, China and some other payments-surplus nations is to de-dollarize. One element of this policy is to revive gold as a means of settling balance-of-payments deficits. Gold is a pure asset, having no liability on the opposite side of the balance sheet, and hence does not fund the U.S. budget and payments deficits that finance dollar hegemony. Gold’s use to settle payments deficits is likely to be the smoothest route in any transition to an alternative currency bloc.