Today’s Wall Street Journal reports that central banks seem to be considering a move into gold since nothing else seems to serve quite adequately these days as a currency reserve.
Viewed from the general (i.e., not personally holding gold) perspective, this would appear to be salutary as regards the soundness, not to mention convertibility, of currencies, harking back, as it would seem, to the days of the gold standard.
But it would probably be wise not to get too exuberant just yet. Here, we are, after all, still talking about the actions and existence of central banks.
Source link: http://archive.mises.org/8571/central-banks-would-buy-what/
Central Banks Would Buy WHAT?
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“But it would probably be wise not to get too exuberant just yet.”
Personally I’m worried that they are going to instruct all gold owners to visit their local Federal Reserve bank and sell the coins back to the Fed.
I hear Gordon Brown is waiting for gold to get back above $1,000 before he instructs Mervyn King to go ahead with this.
- You can have my gold, when you pry it from my cold dead fingers.
- Your proposal is acceptable.
Never really understood why The People had given up their gold in 1930s so easily. Or the alcohol some time before that.
I’ve seen video of Nazi soldiers making people lie on the ground in a line and then walking down the line shooting them one by one. I’ve often wondered what makes people comply with that kind of order – I’d like to think if it was me, I’d attack the soldiers and at least try to get a gun; might be killed in the process, but it’s better than being shot meekly lying on the ground, no? Yet hardly anyone ever does fight back, even when they’re going to die.
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