Quote from: Hydrogen on January 16, 2020, 11:55:30 PM

In october of 2019, the dutch central bank was quoted as saying: "If The Entire System Collapses, Gold Will Be Needed To Start Over".

I made a thread on it, here:

https://bitcointalk.org/index.php?topic=5193372.msg52775202#msg52775202

I'm certain there are conspiracy theorists who believe banks recent hoarding of gold is in preparation of them crashing the global economy, to later restart and reshape it in whatever image they choose. I'd prefer not to get into that as its so heavily based on personal preference and so little about it can be proven or disproven.

With political and business dealings, there are marketing brochures that are written for mundanes, who are too illiterate to recognize the real reasons for things. Then there is a separate brochure, which are distributed exclusively to ruling elites, containing legitimate reasons and motives for everything.

When fiat was first adopted and a true gold standard was in place where every paper bill issued could be exchanged for gold. That was the only time in history fiat currencies were truly backed by a collateral asset. Since then the degree to which balance sheets are backed by precious metals, gold or anything else has significantly eroded to a point where it no longer really matters. And so the degree to which balance sheets and budgets are backed by gold sits currently at such a low percentage. All of those arguments about gold being necessary to collaterize finance/economies could somewhat be considered obsolete.

Resetting the global economic system requires a global agreement involving several countries. A very difficult conspiracy considering actions like this require multi-institutional joint action around the world. If you see this, it's a conspiracy to reset the world's financial system. I see this as a movement of awareness in many countries that the global financial system (fiat system) has failed and because it has been trapped in this system many countries have begun to take action to minimize its effects or when the fiat money system is destroyed, they can survive.

Awareness began to emerge when the United States experienced the 2008 monetary crisis. When the US dollar weakened, the value of their wealth reserves also decreased. Since then they have rethought to re-balance their portfolio of foreign exchange reserves to gold. Naturally, if the central bank diversifies its foreign exchange reserves into gold when the dollar tends to weaken amid loosening Central Bank policies that may flush the market with cash through print money.

The Central Bank of the United States often raises the benchmark interest rate, which has the same effect, where other countries must also raise the benchmark interest rate. Because if we do not follow the pattern adopted by the US Central Bank, the currency of a country will be at risk of weakening.

The upward trend in benchmark interest rates also has a negative impact that has triggered an increase in credit interest rates which makes it difficult for the economy to spin a country's economy and eventually weakens economic growth.

Turkey, Venezuela, Argentina are examples of countries whose economies fall into a pool of crisis along with the weakening of their respective currencies. Reflecting on these dynamics, it is better to diversify foreign exchange reserves with gold besides gold negatively correlated with the US dollar, the price of gold will continue to increase as long as demand is far greater than supply.

Benefits for a country's macroeconomy include, among others, a policy of controlling the benchmark interest rate, because it does not have to be based on the magnitude of the country's benchmark interest rate. Inflationary pressures caused by the weakening of the national currency need not be a concern because gold can reduce it. And last but not least, we will be more optimal in controlling the amount of poverty and unemployment.

If we look at the current real conditions. Our dependence on the American swift system is still very large. The adoption of bitcoin or cryptocurrency as a counter-swift solution is still hampered by bans from countries that do not adopt. While the infrastructure and systems for moving the swift system to a gold-based monetary system have not yet begun, so it is still imaginary. So everything is only based on the prediction of belief but not yet real application.