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<p>[QUOTE="fatima, post: 1380944, member: 22143"]They are small when denominated in fiat money. Central bankers don't care about that as they can create fiat out of thin air. You have to understand how gold is used by the central banks as an asset for their "base money". It's much more important than they let on as gold is one of the legally defined assets they can use to back the "base money" supply. Because of the effects of reverse fractional banking, and even worse QE, gold's worth is huge. </p><p><br /></p><p>However, if they manage to take Greek's gold, then they effectively short circuit their ability to leave the Eurozone and create their own currency. Gold is the one thing that will allow them to do this and immediately rejoin the world financial community. Without it, they would have nothing to back their base money with and hence there would not be a way for them to buy $s and other currencies without it.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1380944, member: 22143"]They are small when denominated in fiat money. Central bankers don't care about that as they can create fiat out of thin air. You have to understand how gold is used by the central banks as an asset for their "base money". It's much more important than they let on as gold is one of the legally defined assets they can use to back the "base money" supply. Because of the effects of reverse fractional banking, and even worse QE, gold's worth is huge. However, if they manage to take Greek's gold, then they effectively short circuit their ability to leave the Eurozone and create their own currency. Gold is the one thing that will allow them to do this and immediately rejoin the world financial community. Without it, they would have nothing to back their base money with and hence there would not be a way for them to buy $s and other currencies without it.[/QUOTE]
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