halalmoney on Nostr: “This scramble for gold by central banks raises interesting questions about trust. ...

“This scramble for gold by central banks raises interesting questions about trust. It suggests that even they don’t fully trust the system they control.”

quoting
note1f79…0knl

It is pretty ironic! Central banks can print as much fiat currency as they need, yet they still scramble to accumulate something real, like gold, that actually has intrinsic value and scarcity. It's like a tacit admission of the instability of the system they oversee—while they assure everyone that fiat money is sound, they’re quietly backing up with assets that are anything but “conjured.”

This scramble for gold by central banks raises interesting questions about trust. It suggests that even they don’t fully trust the system they control. If the fiat currency they create were truly sufficient, why would they need an asset they can’t replicate?