Only if you are correct when you say gold has no place in any monetary system. If you are wrong & gold is a form of money - be it the last word in currency exchange as contended by Greenspan or simply another of the world's currencies - we can only know this in retrospect
The problem with your above comments, Richard, is that you don't believe that gold should be loaned or borrowed by the Central Banks, which is quite in contrast to how other monetary reserves are utilized.
No... you and the rest of the goldbugs want all of that gold to sit in Ft. Knox, NY Reserve, or in the London Bullion Banks and do nothing except back up the paper currency according to some contrived valuation.
Otherwise, you would have no problem with the bullion banks leasing or selling gold as they see fit in order to properly allocate their monetary reserves. Instead, you have relegated the US Treasury to a policy where they were forced to hold US gold supplies while the rest of the world sold theirs into the high prices (converted ounces into dollars).
Everyday the Central Banks buy and sell various currencies in order to balance their books and support or restrict their currencies. But no.... not gold, by god!! You can't touch it. You have to dig it up, process it, and ship it to a vault where it will sit for posterity, taking up space and drawing no interest.
And also, btw, forcing people to pay more for articles made from the substance than would normally be required because the CBs own the largest part of global supply and can't sell it.
That's a subsidy, Richard. |
