Lately, there have been stories popping up everywhere about nations buying gold or holding onto their current "reserves". In a world where the national currencies of the world are not back by the metal, why is it important that gold be held at all? Maybe some countries might look at gold as an investment, but to what end? If they buy gold and make a profit, they sell the gold and use the monies toward some government boondoggle. They could simply print the money and do that.
Has anyone ever wondered why we have a Fort Knox? All of that gold came from confiscation of the American people. It is a reminder that we were robbed by our own government which promptly gave us twenty dollars for each ounce and then, after they had most of it, announced that the price was being fixed at thirty-five dollars an ounce (other countries could exchange their dollars for the higher priced gold but we citizens could not). It is still one of the greatest heists in history. What's the big deal you ask? One significant feature of gold-backed currencies is the vote with which you can cast with it. If you felt your government was being fiscally unsound, you could take your paper down to the bank and exchange it for gold. If enough people did this, it sent a huge signal. That voting mechanism is no longer.
The last ties to a gold standard were severed in 1971. What, then, is the reason for that hoard in Fort Knox or for a hoard of gold by any central bank which prints un-backed currencies? Could it simply be for the sake of illusion? A paper note is only as valuable as the people believe it to be. Fort Knox stands as a reminder to all of us that the U.S. government holds a tangible asset and therefore, by extension, our money has value. "Full faith and credit" and all that. We have the faith AND the credit to show for it. It's a bunch of hokum, of course, but it works for the time being.
What of the other countries who are buying gold and storing it even though they can print money at will? Some like to believe that these other countries want to create a world currency backed by gold. Maybe they do, in the same way that the Federal Reserve did. And after people become comfortable holding the new currency, a time will arrive when the global central bank will declare that it will no longer exchange gold for its fiat paper. Then it's off to the races again as that new bank prints money for what is likely to be a world government, allowing unprecedented expansion like we have seen here at home (Think of it like The United Nations with a printing press). The people will still use the currency if history is any guide.
Most likely, we can look for gold to become more valuable (and touted as such by the media) so that it can play the central role in the new currency's formation. At some point in the future, however, it will once again become known as the barbarous relic by the true barbarians who wish to print at large for purposes of power consolidation.
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