This video is a follow on from the previous video dealing with the topic of the Gold Reserves held by the bank of England. If you haven’t seen that video, I would recommend you doing so before watching this one.
In that video we looked at why it was necessary for banks to hold gold in the past. We considered the Gold Standard - the backing of bank notes, “paper currency” with gold - which gives the bank notes a value that they would otherwise not have. We looked at the Nixon Shock that took the US off the Gold Standard and we also looked at Fractional Reserve System and Reserve Requirements.
In that video I suggested that, as we were no longer on the Gold Standard, holding gold was a redundant function. This was slightly disingenuous of me because it is my belief that we should be on the Gold Standard. In my opinion, a currency must be backed by Gold in order that it can operate more like money and so that we the people can have faith in it. I took that position in order to make a point … So, to state my position explicitly, I think that the Gold Standard is bona fide and I think that it must be reinstated. The primary function of gold, so far as I’m concerned, is to back currencies.
Why does the Bank of England hold gold - besides the Gold Standard?
That said, let’s now focus on the other reasons besides the Gold Standard why the Bank of England, along with other Central Banks, would want to hold gold.
The Central Banking Cabal
The Bank of England website answers this, stating, “London is the global centre for gold trading. We support financial stability by providing central banks with access to the liquidity of the London gold market”. Hmmm. Interesting. So, it would seem that the Bank of England allows other Central Banks some form of access to the gold held in the reserves.
We must bear in mind that the Bank of England does not exist in isolation. The Bank of England is the Central bank of the UK, but it’s one of many Central Banks operating throughout the world. There are 63 Central Banks in total.
These institutions form a worldwide Central Banking network. All the Central Banks work in conjunction with each other. They all work together, in concert, to achieve their aims.
This, however, seems a rather sympathetic way of stating the situation. There is another way of saying this which puts a slightly different slant on matters.
It could be said that they work in cahoots with each other. This way of viewing the issue is more in line with my way of thinking. As I’ve made clear in other videos, I believe that Central Banks are not working in the best interests of the good people of this world. Indeed, I believe that Central Banking is a con, that the Central Bankers are criminals. It’s my opinion that the network of Central Banks is a criminal cartel, or a cabal – or whatever term you wish to use.
The BIS - the Central Bank of Central Banks
But anyway … The Bank of International Settlements (the BIS) based in Basel, Switzerland, is
