Charles Goyette: Is it possible that the vaults of the world’s central banks, believed to be stacked with gold bullion, are really empty? Is all the gold actually there?
Something about the numbers doesn’t seem to add up.
The importance of the question accelerates in the face of global
money-printing, which is also accelerating. Since the start of the
economic meltdown five years ago, the balance sheets of the world’s
central banks have been growing at a frantic pace.
The U.K. has led the pack, up 362%, followed by the United States,
which is up 223% — even before QE III. China is printing money as well,
up 151% during the period, the European , 146%, and Japan, 83%.
That’s a lot of money-printing.
But take heart, because while the currencies of all those countries
are absolutely, 100% fiat — redeemable in nothing but more of the same
paper — the world’s central banks are said to have huge reserves of gold
bullion. The U.S., U.K., the euro zone, Switzerland, Japan and the
International Monetary Fund report having gold reserves of 23,349 tons
Central banks of the world’s terminally indebted countries prefer the
fiction that paper money that’s printed at little cost, or digital
bookkeeping entries that are created at no cost, is money and therefore
constitutes real wealth. However, there must be a reason that central
banks universally hold gold reserves. (more)