This post was most recently updated on April 25th, 2020
Our monetary system which is based on trust is losing this trust more and more every day and many think that a system reset is inevitable. Many think that when trust is lost the only way to regain it is to turn the gold standard.
It is stunning how even big players of the monetary system like central banks are joining the trend of the gold standard.
The Dutch Central Bank published an article with an impressive statement:
“If the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”
An article distributed by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has stunned numerous with its case that “if the framework crumples, the gold stock can fill in as a premise to develop it once more. Gold supports trust in the steadiness of the national bank’s asset report and makes a conviction that all is good.”
Dutch National Bank goes ‘Big Reset’:
‘Aandelen, obligaties en ander waardepapier: aan alles zit een risico [..] Als het hele systeem instort, biedt de goudvoorraad een onderpand om opnieuw te beginnen. Goud geeft vertrouwen in de kracht van de balans van de centrale bank’. pic.twitter.com/Oi9n7bnAdi
— willem middelkoop (@wmiddelkoop) October 12, 2019
While the prediction of the monetary system collapse is not a new thing, it is the first time that a central bank admits a possible fiat currency collapse and the cure would be the gold standard.
It is surprising how a mainstream financial institution gives more value to limited supply sound money assets over Fiat money. It is also hypocritical given the practices central banks use to create from thin air an unlimited supply of fiat.
Only a couple of months back, the IMF published an article with the title: Destabilizing the Global Monetary System: Germany’s Adoption of the Gold Standard in the Early 1870s
And today we see an article from the Dutch Central Bank saying not only golf did not destabilize the monetary system but it is the asset than can save it when everything crashes going even further calling it the anchor of trust.
The article states:
“Shares, bonds and other securities are not without risk, and prices can go down. But a bar of gold retains its value, even in times of crisis.”
Goldbugs have been saying this for years, sot why a central bank admits it now?!
The article goes on stating that a large part of the gold reserves will be moved to a Ministry of Defence site in Zeist.
Maybe the Netherland bank is moving the gold reserves to a military site as a preparation for the big reset.
Bankers know the power of sound money, but they like more playing the inflationary games in a global monetary system that many call a Ponzi scheme which is based mostly on force a blind trust rather than on principles and transparency.
And while preparing for the monetary system reset, the Dutch Central Bank is additionally set to start getting serious about crypto exchanges and wallets, saying that firms offering services for the exchange between cryptos and regular money, and crypto wallet providers must register with De Nederlandsche Bank.”
There is a growing trend of KYC/AML policies in the crypto world while trillions stay in offshore countries and “tax-evading heavens”. Chances are that this crackdown against crypto is another way of stockpiling crypto assets. Bitcoin which is seen by many as gold or even better does not need to be trusted because it can be verified.
So even in case of a gold standard people have to trust the bank that they are holding gold in their vaults. In the case of bitcoin balance sheets are stored in the blockchain and are publicly verifiable, so there is no need for trust at all.
Speaking about the timing of this monetary reset which central banks seem to be preparing themselves securing their physical gold reservers like Germany or Austria who repatriated their gold from the New York Fed vault.
Let hope that the IMF and central banks will be benevolent enough to give notification to their citizens before it is too late to convert their fiat money into hard assets. Or maybe not!
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