Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (4551)	3/19/1999 8:09:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 81875

NO, I hear this tripe from every anti-gold type everywhere! Just like we hear from the goldbugs that the FRB is the creation of a cabal of sinister "puppet-masters" acting in concert to subjugate and prepare the world for the appearance of the anti-christ. Richard, you seem to understand nothing of how the banking and financial system works. You seem to ignore the primary fact that under a gold standard OR under Fiat, the soundness of a bank is only determined by the confidence of the depositor that his money is safe. Before the advent of the FRB, one bank would inevitably bail out or take over another bank that had fallen into trouble. Sometimes a larger bank would attempt to create the collapse of another bank so they could acquire that market share. There was little, if any, overall centralized control or standards over how much banks were lending versus their available assets. And when there was a public run on a bank, people would want gold, not cash. And there was no way that a bank could easily transport that much gold from the larger eastern banks were the gold was deposited, break it down into proper denominations, and prevent their bank from being shut down. The best defense against a bank run under any system is the maintaining of confidence. I don't care if you have a gold-backed currency. Lose that confidence of the depositor, and you have lost the banking system. The FRB thus act as a primary oversight over the previously decentralized and independent US banking system. The FRB operated under the gold standard until Richard Nixon, a duly elected and very conservative Republican, was forced by an international run on gold held by the US, to dismantle the Bretton Woods agreement. Now I did a quick search on the net and came up with this link: tarpley.net It's written by an apparent follower of Lyndon LaRouche, who I'm not especially fond of, but it appears to be a very historical and well documented piece on the events that brought down Bretton Woods in 1971. You need to read it Richard.... Then come back and tell me that all of these Central Bankers think alike and act in unison. The US created Bretton Woods tying the US dollar to gold @$35. Other currencies were pegged to the dollar thus possessed a gold standard by proxy. The Brits and the French didn't much like having the dollar as the pre-eminent global reserve currency while theirs were getting whacked. So they demanded large amounts of gold in exchange for the reserves of dollars they held. It was effectively an international bank run on US gold, and Richard Nixon decided to declare a MEGA bank holiday by going off the gold standard. Regards, Ron