why further qe is unlikely, page-40

ChiefyJ

There is plenty of references to what "central banks" do and don't do on the HC gold threads.
There are two question I would ask.
1. Are all central banks behaving in the same way. (Reading some of the posts on HC it woul be easy to assume the do. But they don't.)
2. Is central bank buying of gold good financial management for a government. Is it good for the country's government to invest tax payers money in a volatile commodity? It might be better to spend the money on infrastructure and services (if you are on the Left) or lowering taxes (if you are on the Right).

You might argue that governments having gold in the vault inspires confidence in their currency. I would counter that prudent financial management and avoidance of waste by government inspires confidence in their currency. For a government, buying assets that generate no tangible benefit is irresponsible financial management. ( I am inclined to think that the countries whose central banks are now buying gold are governed buy either fools or thieves.)


Afterthought 1: When central banks stop issuing currency notes and coins and start arranging interbank settlements in gold, I will then believe that central banks think that gold is money.

Afterthought 2: You are right. I shouldn't post after dinner parties.

Cheers