In Response to "BoC rejects Gold as Currency"

Read article, "BoC rejects Gold as Currency" -- http://www.kustomdesign.ca/

Governor Mark Carney of the Bank of Canada stated that “gold has no role to play in the international monetary system,” following a speech on financial reform in Geneva.  If gold has no role to play, why are all the central banks flocking to gold right now?  Why has China ramped up it’s gold reserves dramatically over the last few years? Because Gold has always been there and has always played a role in every financial system that stood over time.  Every time gold has been taken away from the backing of a currency, we end up with a Fiat Monetary System that never lasts over 100 years before crashing!

In another article in the Gazette we find that Robert Zoellick, president of the World Bank, tried to offer an alternative to the present conflict-plagued monetary system in which gold could be used as a reference point for market expectations for inflation and future currency values. Now this makes more sense as gold brings stability to a financial system. 

Read more: http://www.montrealgazette.com/business/fp/Carney+rejects+return+gold/3803098/story.html#ixzz14q01v5Za

Since we can see that currency that is not backed by something of value such as gold always crashes, why would we now want a global monetary system that is not backed by something of absolute value???

The IMF’s Initiatives

Many people do not know what the International Monetary Fund (IMF) is or what they do. The IMF was created in 1944 and is the world's central organization for international monetary cooperation. It has over 185 countries that are members and it oversees the Global Financial System, which many people don’t even know exists. Each member of the IMF has a quota allocated to them. The quota is a member's subscription in the IMF, or what a country must pay to "belong" to the IMF. A member must pay its subscription, or quota, in full to the IMF; up to 25 percent must be paid in reserve assets as specified by the Fund. They have created a global currency called Special Drawing Rights (SDR’s) that is used, and many countries contribute usable currencies like dollars, deutsche mark, pounds, yen etc. The IMF also has large amounts of gold assets, which they are in the midst of selling over 400 metric tons into the markets. Getting rid of their gold and continuing with more paper assets, does that sound like a good strategy for the world’s central organization for international monetary cooperation. There must be a reason! This is an organization that is working to lead the world into global financial recovery and they are endorsing things such as spending less on health, less help for the elderly and raising taxes. (See http://www.ctv.ca/CTVNews/Canada/20100601/canada-20-bank-tax-100601/) How about less government spending in areas that do not affect our health, elderly or taxes! What about eliminating some of the special interest groups, lowering large government pensions and salaries, and eliminating some of the bureaucracy that so much is spent on! The trends that we are in are quite clear; more money in government hands, less in the people’s hands and steps to a one world government in control!