View Single Post
 
Old 12-05-2012, 02:46 AM
Danny B Danny B is offline
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 3,903
Gold and a netting currency

This is also from Bischoff where he talks about gold and a "netting currency".
Obviously, U.S. GOV doesn't want the huge restrictions that would be brought about by a currency that was gold backed TRUTHFULLY. No Fort Knox BB.


To treat GOLD as a commodity whose price goes up or down is missing the point. The point is that gold is MONEY. Therefore, GOLD has no price. What goes up or down is NOT the "price" of GOLD, but the irredeemable, government central bank created fiat currencies.

The question about confiscation of gold is also besides the point. Since there is no redeemable currency left in the world, the gold standard has been effectively expunged. Therefore, it matters little whether the estimated 160,000 tons of gold in above ground inventory are held by governments or by private individuals.

Gold as part of a monetary system is valuable only, if it supports the existence of a "netting" currency. Gold was confiscated, because it supported private "netting" currencies which competed with government central bank fiat currency. Governments can ONLY create "fiat" currency. They cannot create a "netting" currency. To have them confiscate gold when they already hold the monopoly on fiat money creation seems unnecessarily provocative. What do governments have to gain by confiscating gold at this point... ???

The dirty little secret is that it doesn't matter who holds the gold. It only matters whether a currency can be redeemed for gold, meaning that the "gold standard" is functioning. Only with the revival of a "netting" currency can gold again perform its proper function as MONEY. Until then, it doesn't matter who stores the GOLD.

The forty year long worldwide float of government central bank fiat currencies, ignoring the function of GOLD as MONEY, has proven unworkable. To talk about a "price" for GOLD in terms of fiat currency, or to talk about its confiscation is to ignore the only solution to the disasterous attempt to manage the world economy through the circulation of fiat currencies.

"Tier 1 capital" is just another scheme put forth to rescue the central bank currencies, now that the "gold leasing scheme" (Jamaica Accord of the late 1970s between central banks, bullion banks and low cost oil producers) is falling apart.
__________________
 
Reply With Quote