He With the Gold Makes the Rules

Following WWII most of Europe was destroyed while American manufacturing remained untouched.  For this reason the Western world decided to make the US Dollar the reserve currency for everyone and agreed to peg their currencies to the dollar.  After all, the gold was all at Ft Knox and Federal Reserve Banks and we promised not to print more than $35 worth of currency for every ounce of gold on deposit...so the world trusted us.

That promise ended in 1971 and since that time the dollar has been a fiat currency. (fiat=based on faith and trust)

But today it sounds like some of the world wants its gold back.  Maybe they aren't quite as trusting of America and its $20,000,000,000,000 of debt as they once were?  Maybe they are thinking they better get their gold out of America while times are good in case they can't get it back when times are bad?

About 20 years ago when I was still a cadet at West Point, my economics professor organized a class trip to the Federal Reserve Bank of New York.

The part of the trip that I remember most was touring the Fed’s high security vault, 80 feet below street level beneath the bank’s main office building downtown.

This vault houses the largest known depository of gold in the world.

 

None of that gold, of course, belongs to the Fed. The Federal Reserve doesn’t own a single ounce of gold.

Almost all of that gold is owned by foreign governments and central banks.

It’s been that way since the end of World War II—European governments wanted to store their wealth overseas, out of the reach of the Soviet Union.

As a kind of professional courtesy among governments and central banks, their gold has been stored for free by the Fed for the last 70+ years.

Even after the Soviet Union fell, most governments still chose to keep their gold in New York.

It was safe. America was a rich, trusted ally. Why bother moving it?

Fast forward a few decades and the world has clearly changed.

The US government is in debt up to its eyeballs. It has been caught blatantly spying on its own allies. And it’s much less predictable than ever before.

Germany was among the first out the door.

Even as early as 2013, the German government announced that they would bring back at least half of their country’s gold reserves (the second largest in the world) by the end of 2020.

They’re ahead of schedule.

Late last week the German government moved $13 billion worth of gold from New York to Frankfurt.

That shipment puts them nearly at their goal, almost four years earlier than planned.

It’s easy to understand why.

The entire global financial system requires having a great deal of trust.

Here;  http://www.zerohedge.com/news/2017-02-14/

Yes!  Trust!!...a great deal of trust!!! 

Trust is something that can't be measured....a little bit like faith and confidence.

Remember, just because Donald Trump is now president doesn't mean that our numerous financial woes are going to be fixed overnight....or ever.  In fact, the central bankers and money magicians of the world might be so angry at Trump for derailing their globalist agenda that we wouldn't be surprised if they try and figure out a way to hang the US economy so the voters will blame it on Trump....and maybe even pave the way for a new one-world global currency.

Also remember how tenuous our happy-care-free existence actually is in America.  It could all come apart suddenly.  So let's remember not to trust in our money and material things.....but let's keep our eyes focused on the unseen things instead.  The unseen things are the only things that are real.

"Turn you eyes upon Jesus, look full in His wonderful face....and the things of this earth will grow strangely dim, in the light of His glory and grace."