Originally posted by zookey
reply to post by hawkiye
So somebody answer this one..
If they control the money supply, they don't need money, they just use that concept to control us right?
So, money is not backed by GOLD, so as printers of money, they don't need gold, right?
So, what do THEY need gold for? It is not wealth, they already have that.
I guess it is for some OTHER reason.
The gold is "just in case."
Fiat money creators are always playing a game of "chicken" with actual resources, physical holdings of this and that, etc. In the 1970s there was
mistrust of the dollar in the wake of Vietnam and soaring inflation. International holders of dollar assets (and the French, in particular) began to
demand their gold holdings (as the dollar was still then officially backed by and redeemable in gold). The coffers were quickly depleted and the
emperor was about to be naked, when suddenly Nixon basically threw down the gauntlet by going off the gold standard. He basically was saying to the
capitalist world at the time: "OK, we admit it, there isn't enough gold. But so what? The system works pretty much OK for all the big players. You
really want to crash the whole system?" The big players and the market in general decided that no, they didn't want to.
Basically what the Fed has been doing since 2008 (earlier, really, but since the financial shock in earnest) is taking this game to the next level.
"Sure, we are printing cash, buying our own debt, handing out bailouts like candy...but what are you going to do about it?" Up to now, the world has
decided that the benefits of maintaining "business as usual" outweigh the benefits of demanding accurate gold pricing. But the more they lean on
this method for support and justification, the more dangerous it becomes. Measures like QE 1 & 2 are meant to be extraordinary measures, not ways of
life. The smart money knows the longer this charade goes on, the more the chances of a crackup, and they are increasingly demanding physical. I'm not
talking about your average ATS guy with a few gold keuggerands under his pillow, or even successful independent commodity traders...I mean the big
players - Asian and Middle Eastern Sovereign Wealth funds, Indian and Chinese government policy, etc. These people are sloooooowly backing towards the
door the longer the US refuses to set its house in order.