Saar Gold is the wealth of nations irrespective of which nation.
Just like oil can act like a wealth for those who have it in ground but they still hold gold.
Just like a huge population can act like wealth but they still hold gold.
Just like having technological superiority can act like wealth but as long as gold cannot be manufactured, they still hold gold.
Gold standard is passée.
Gold standard only ended a few decades so its not passe. While I agree that technological prowess, food security, etc is more important the world needs an anchor to ascertain the strength of its currency, especially now since the dollar is in decline and slowly losing its premiere reserve currency status. You still haven't addressed the central question: Why are central banks hording the stuff?
Here is what my friend who goes under the pseudonym costata says about the reason why gold is being hoarded.http://neuralnetwriter.cylo42.com/node/4014?page=3
Hello costata, I have a question for me.
Okay costata fire away.
Thanks costata, my question is: If you had to explain New economic paradigm in a couple of paragraphs what would you say?
I'm glad you asked that question costata. Here's my answer:
The current $IMFS is backed by collateral. The ultimate collateral in this system is sovereign debt - the risk-free asset in the banking system against which all other assets are priced. This sovereign debt was always worthless because sovereign debt has never been repaid. (England being the sole exception and that was hundreds of years ago.) So, at some point, the system will need to be recapitalized with collateral that is NOT worthless.
Real estate IS big enough to back the new regime but it isn't an option for several reasons. (One, because it's already mortgaged to the hilt.) Oil is also big enough but it isn't an option because that's what underpins the current US dollar-based system. Apparently an oil-backed Euro was envisaged some time ago but that appears to be a no-go today IMHO. Gold is the only remaining option. Now you could simply adopt gold as the new risk-free asset and make the sovereign debt obviously worthless. A dumb move that would please the gold bugs (and no one willingly rewards stupidity except voters).
Alternatively you could back the sovereign debt with high-priced gold and thereby minimize the disruption to the status quo. You can't back the currencies with gold because you need to debase the currencies in order to reprice gold to a much higher level in order to back the mountain of sovereign debt and the even BIGGER mountain of debt based on the mountain of sovereign debt. You can't have it both ways. It's either sound currencies and unsound sovereign debt or sound sovereign debt and unsound currencies. Capisce?
BUT first you have to get sufficient gold into the hands of the sovereign debtors whose debt underpins the whole system - EMU, USA, major gold producers and so on. Done! Tick that off your list. BUT you also need to pacify the other people who matter these days (e.g. Russia and China). So even if a country is already positioned for the transition it makes sense to co-operate in kicking the can down the road for the countries who aren't ready yet.
And you may be wondering why the PTB are screwing countries senseless at the moment with the apparent goal of making their sovereign debt sound. "They" are doing it for three reasons (a) because they can and (b) because it is very profitable and (c) it is a convenient lever to use to obtain other much more important concessions. In order to be crystal clear, "very profitable" means that you get the full, present currency value of the sovereign debt and the uplift from the gold revaluation of BOTH the debt and the gold you own. It's a great deal if you are correctly positioned (and a ruthless prick).
Thank you costata. I may be nitpicking but you said "a couple of paragraphs" and that was five (5) paragraphs.
Shut up, you idiot!