Central Bank Issues Stunning Warning: “If the Entire System Collapses, Gold Will Be Needed to Start Over”
The comments below are an edited and abridged synopsis of an article by Tyler Durden
Many have been warning that a monetary reset is inevitable. The fallback option, once trust and faith in fiat is lost, is a gold standard. Central banks are joining the doom parade now, too.
An article published by the Dutch Central Bank (DNB) says that, if the system collapses, gold can serve as a basis to build it up again. Gold bolsters confidence in the stability of a central bank’s balance sheet and creates a sense of security.
While predictions of a monetary reset aren’t new, they have been an outlier. As such, it is stunning to see a mainstream financial institution open up about the superior value of a limited supply, non-fiat, sound money asset.
The DNB thinks that gold will be the monetary system’s only savior when everything else crashes. It holds 615 tons (15,000 bars) of gold with a value of over $6.62 billion. The article sets out why gold is so important to wealth building and the global economy, claiming: “Gold is… the trust anchor for the financial system. If the whole system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank’s balance sheet.”
The DNB recently announced that it would soon be moving a large part of its gold reserves to the new DNB Cash Center at military premises in Zeist, almost as if the Netherlands is preparing for the grand reset, and is moving its most valuable asset to a military installation just for that purpose.
As for the timing of the monetary reset, which other central banks have hinted at amid massive repatriation of physical gold from the New York Fed to various European central banks, we can be confident that the trust-keepers of the current establishment (other central banks, the IMF) will provide advance notice to the citizens of the developed world to exchange their fiat into hard assets. Or, then again, perhaps not.