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<p>[QUOTE=&quot;fatima, post: 1381816, member: 22143&quot;]Fiat currency is for peons like us.&nbsp; It&#039;s a meaningless creation by the private (not government) banking system.&nbsp;&nbsp; However the private banking system needs to trade amongst itself and it&#039;s governments.&nbsp;&nbsp; They use real, lawful money, for this.&nbsp; How could they possibly do this in their own fiat currency?&nbsp;&nbsp; Bank of England wants to buy Euros from the ECB.&nbsp; Do they print up pounds and hand them over?&nbsp; No.&nbsp; The ECB knows the worth of fiat currency.&nbsp;&nbsp; Instead, the BofE must trade real lawful assets.&nbsp;&nbsp; </p><p><br /></p><p>Lawful monetary assets include gold, governmental treasury notes backed by the taxpayers, bank reserves (which reflect the wealth of the real economy) and for most every country except for the United States, the US debt valued in dollars.&nbsp; The problem with this scheme is that the $ is being debased at astounding levels, and this only leaves gold as the common denominator.&nbsp;&nbsp; This is why China, India, and other countries, which have developed huge wealth creation machines, are moving to acquire gold.&nbsp;&nbsp; For anyone else, like the people of greece, what ones can, have moved their money out of the Eurozone and into Swiss banks which then are happy to sell these people gold for their deposits.&nbsp;&nbsp; </p><p><br /></p><p>In practice there is very little movement of physical gold.&nbsp; There are numerous large gold depositories around the world and the central bankers make ledger changes on which bank owns what gold.&nbsp;&nbsp; Greece&#039;s gold may not actually be in Greece which would be bad for them.&nbsp;&nbsp; This is why Hugo Chavez just recently removed most of their gold from London.&nbsp; They left a few tons behind for the purposes listed above.[/QUOTE]</p><p><br /></p>

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