This is misleading. Gold was replaced by other assets, notably 'T-Bills'.
Basically, USD are backed by Government debt, instead of Gold.
To imply the Fed just 'says it is' is misleading.
Since 2008 a lot of the assets on Fed balance sheets are mortgages = notably, underwater mortgages bought by the Fed at face value from banks that were going bankrupt.
But I think the point about Gold->Other Assets is important.
Euros are backed by assets as well.
RMB is the major currency based on the magic will of one man, Xi, who can effectively control currency with the press of a button. We think that is 'bad' because money should be separate from governance, but they look at it differently apparently.
So imagine if Johnson, Macron, Trudeau, Trump etc. could literally decide how much money to 'print', to which banks it goes, and to whom the loans would be made, and under what terms.
This is they key limitation on RMB becoming a truly 'global currency'.
The article is a very worthwhile read though, so as to dispel a lot of conspiracy theories about banking.
Funny enough, there is a lot of shady activity in banking, but it takes a good understanding I think to make sense of it.
This is misleading. Gold was replaced by other assets, notably 'T-Bills'.
Basically, USD are backed by Government debt, instead of Gold.
To imply the Fed just 'says it is' is misleading.
Since 2008 a lot of the assets on Fed balance sheets are mortgages = notably, underwater mortgages bought by the Fed at face value from banks that were going bankrupt.
But I think the point about Gold->Other Assets is important.
Euros are backed by assets as well.
RMB is the major currency based on the magic will of one man, Xi, who can effectively control currency with the press of a button. We think that is 'bad' because money should be separate from governance, but they look at it differently apparently.
So imagine if Johnson, Macron, Trudeau, Trump etc. could literally decide how much money to 'print', to which banks it goes, and to whom the loans would be made, and under what terms.
This is they key limitation on RMB becoming a truly 'global currency'.
The article is a very worthwhile read though, so as to dispel a lot of conspiracy theories about banking.
Funny enough, there is a lot of shady activity in banking, but it takes a good understanding I think to make sense of it.