I've often theorized to myself that, in all things, the central banks are fractional addicts. If the central banks are perfectly willing to fractionalize their own debt-money, then, by extension, they would be more than willing to do the same with their "current" gold reserves, for they used to do this very thing when gold was the money they used.
So, your observations and questions are pertinent ones. I'll wager more than a few central banks have lent out their reserves more than once (not necessarily the one claim assumed under a single, simple lease arrangement). Furthermore, as with the debt-money multiplier effect, there is, loosed upon the world, a gold-money multiplier effect with claims on the same gold and its conversion multiple times.
The game of musical chairs comes to mind. When the music stops (or even begins to slow down), few players will have a solid place to sit. In fact, since more players are being added to the game all the time, the ratio of players to chairs increases with every verse. I guess they could always try to sit on their "promise of a chair" instead of an actual chair and see what happens. |
