If you are not already aware, the Bank of Canada holds exactly ZERO tonnes of gold in its reserves. Yes, you read that correctly. In 2016, the BoC sold its last tonne of gold and has not bought any since then, even while inflation continues to creep higher and other countries continue to stockpile the metal. Anyone with a basic understanding of economics will probably be left shocked and frustrated by this. I would like to direct everyones attention to this Kitco piece which outlines why the Ban
  • lps@lemmy.mlEnglish
    5·
    1 year ago

    I can understand this is insane for the BoC, but luckily the country does have gold in the ground

  • nik282000@lemmy.ml
    43·
    1 year ago

    Metal backed money hasn’t existed for decades, everyone operates on virtual credit and debt. When you buy a house the bank makes the money pop into existence along with a record of a debt that you own them equivalent to the value of the mortgage plus interest. They never had the cash or a big pile of gold to cover the mortgage nor do they need it because YOU are going to give them that money over the next 25 years or so.

    Gold is not just a commodity – it is money itself, as it has been for over 3,000 years.

    That’s not even true, many cultures have used credit systems without any kind of metal backing. This article would do well on Fox.