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<p>[QUOTE=&quot;Cloudsweeper99, post: 1016782, member: 3011&quot;]I don’t think you can squirm out of this with derogatory comments.&nbsp; You said, “the Federal Reserve holds the Ft. Knox gold as collateral for it&#039;s operations…”&nbsp; This isn’t true.&nbsp; You said that if it was found that there was no gold in Ft. Knox, the confidence in the dollar would be “shaken to its roots,” and that isn’t true.&nbsp; You said, “Central banks do not use the fiat money they produce to settle obligations with other central banks.”&nbsp; Nobody on the planet thinks central banks exchange paper.&nbsp; So what are you saying?&nbsp; This is a meaningless statement probably intended to cover up your prior error by saying the whole thing is too complicated to explain. Maybe you meant to explain how the Fed buys and sells foreign currencies through the FOMC and in coordination with other central banks.&nbsp; Or that they also use currency swaps and lines of credit established between central banks.&nbsp; Maybe.&nbsp;&nbsp; Gold isn’t used as a backing for currency or for international settlements.&nbsp; Some banks hold gold, some don’t.&nbsp; It just isn’t important to the vast majority of dollar holders.&nbsp; The Fed can back the dollar with gold, or with nothing, and it doesn’t matter.&nbsp; The dollar has value because it can be used to purchase goods, services and assets in the US, and not because it is “backed” by anything.&nbsp; </p><p><br /></p><p>I don’t care what you believe.&nbsp; I just don’t want you to mislead others.[/QUOTE]</p><p><br /></p>

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