What happens when someone asks a serious question of “where is the Federal Reserves Gold?”
Russia emphasizing Gold may be the ultimate way to erode the last bit of confidence in the USD. If you think about what’s been going on this may have been the game plan. Has the honesty / integrity of the Federal Reserve been recently high or low? Low. Repeated reports of insider trading and corruption. At some point the question will be formally asked if “Did the Federal Reserve Corrine the United States Citizens?”
That answer is yes. When that happens instantly the Reserve Status is dead.
Want to see runaway inflation and the destruction of the USD? Watch USD holders run for the exists en mass and then The Derivatives bubble finish off everything else.
THE ONLY WAY TO FIX THIS IS TO ALSO BACK THE USD WITH GOLD FORMALLY
Checkmate.
Doesn't matter whether they have ANY gold in the vault. USD is fiat currency.
It matters in the fiat sense.
Remember fiat is based on promise alone. If it comes out that confidence could be shaken.
The only premise anyone has in the USD is the backing of the “Full Promise of the Federal Reserve” so if it comes out that they literally have no liquidity and countries start abandoning the USD in favor of over currencies - that’s bad.
Now remember - that’s why gold means somthing. No matter what a commodity is real. A promise isn’t. If a country comes to the Fed and demands back their gold ( Germany did this in 2015 ) then confidence can be shaken. That’s precisely what happened.
https://www.kitco.com/news/2017-08-24/Germany-Gets-Its-Gold-Back-From-The-Fed-And-It-s-A-Big-Deal.html
Article doesn’t say it but it was different gold.
Clearly the Fed didn’t have the original gold
The "value" of the U.S. dollar is determined by "consumer confidence." [their] consumer's confidence. Not the People's confidence, but the investor's. Nixon took us completely off the "Gold Standard" and decoupled the U.S. Dollar from the value of gold. It's literally backed by whatever the Fed feels "confident" in at any particular time, based on how many countries are coming to the Fed to buy Treasury bonds to then turn back in to the Fed to "purchase" U.S. Dollars, to then give back to the Fed when they purchase oil or other U.S. made goods from one of [their] conglomerates. The owners of the Fed then take that money and buy precious metals, real estate, and more corporations to bring under [their] sphere of control.
The U.S. Dollar literally has no connection to gold, silver, or any other tangible good, other than to trade it in when purchasing said goods.