Because the nature of reserves is basically insurance and something you may need one day in a hurry. Rather than risk being mugged and robbed of one’s wallet etc. some people carry a hand gun in reserve. If the gun is at home locked in a gun safe is it really a reserve? If the ammunition for the gun is stored 12,000 miles away how is it useful as any kind of reserve.
Personally I am not a fan of guns; however, I often go to a lot of auctions and for that reason I more often than not carry a reserve of a minimum of $500.00 cash about me. I have over time purchased many great bargains at auctions and would not have been able to do so without having my cash reserves on me.
I always figured that the reason the bank buildings looked so elegant with their sandstone fascia’s and pillars fancy crest’s and the manager with his pinstripe suit and tie was to give an air of respectability. After all would I trust my money to someone wearing a ski mask behind the bank’s counter?
I am very much aware of the current system of fractional reserve banking and how money is made out of debt creation. I recently admitted to Biggle’s that I spent a life believing that manufacturing or growing more items than one’s own immediate needs and selling them for money to be used at a later date was the only way to go. Now slow of me I know, I realise this is no longer necessary when we have the money printing press no-one needs to work in the western world at least. The governments can just print all the dollars required in the same way as the USA and Japan without any pesky problems such as inflation, unemployment. The American’s and Japanese are all well fed, healthy, educated and happy. Clearly this system works as it has been so obviously demonstrated for many years now; however, for some strange reason whenever I call into my bank to inquire where I get my free money from they just point me at their loans manager!
Apologies I appear to have digressed a little. Back to your question:
“What would repatriating Australian gold from the BoE achieve? Is the RBA short of paper weights and door stops?”
Because the Gold is our reserves and they belong to us all Australians they are the collective results of our earnings from shearing sheep, growing wheat and mining raw materials to sell to China without any value adding. Why Australia wishes to further tell the world we are a stupid nation is well beyond me! And what’s more just for good measure Bankers of any ilk are just not to be trusted. Given the option to trust a banker or not is my personal decision I feel and I for one just don’t trust the b@stards one little bit.
I read the papers and watch TV and try and keep myself informed. I know better than to hold two bits of copper wire in my hands and stick them into a 240 Volt socket as it’s stupid and dangerous as is trusting other’s to look after whatever it is you feel is precious to you or may be need in a hurry (reserves.)
Trust a bankerTimber; you need to get out more a lot more probably more than any other man on the planet I think!
Check out only part I might add of their current score card:
