Dutch National Bank Says Gold Can Re-Start Economy in Case of Total Collapse
October 13, 2019
An article found on the De Nederlandsche Bank (DNB) website has surprised many in the crypto space, with its bold claim that “If the entire system collapses, the gold stock provides a collateral to start over.” While proclamations of this nature are nothing new, it is strange to see a mainstream financial institution open up about the superior value of limited supply, sound money assets. A bit hypocritical, perhaps, given the diametrically opposed Keynesian practices regularly engaged in by central banks worldwide.
The translated article, entitled “Goud van DNB” (“Gold from DNB”) states: “If things go wrong, prices may fall. But, crisis or not, a gold bar always holds value.” DNB claims to hold over 600 tons (15,000 bars) of gold mainly in Amsterdam, with other stores in the U.K. and North America. The reserve is valued by the bank to be worth over €6B (~$6.62B). Calling gold the “trust anchor,” the article details briefly why the hard asset is so important to wealth building and the global economy, claiming:
Gold is … the trust anchor for the financial system. If the entire system collapses, the gold stock provides a collateral to start over.
On October 7, the bank also announced they’d soon be moving a large part of their gold reserves to “the new DNB Cash Centre at military premises in Zeist,” a local media outlet reported.
Even Unsound Banks Want Sound Money
DNB is no stranger to playing along with the Keynesian, inflationary games of the global monetary system. A system which, according to some, is now more a Ponzi scheme based on force and blind faith than sound economic principle. That notwithstanding, the centralized financial powers of the world know the real score, and that’s why hard assets like gold are hoarded and locked down while everyday, individual residents of these geopolitical jurisdictions are encouraged to spend and spend, going further into debt to prop up ultimately unsound national economies.
As news.Bitcoin.com reported on September 4, De Nederlandsche Bank is also set to begin cracking down on crypto exchanges and wallets, the bank stating that “firms offering services for the exchange between cryptos and regular money, and crypto wallet providers must register with De Nederlandsche Bank.” The demand for greater KYC/AML policy is a growing global trend, so there’s no surprise there. The remarkable part for many in the crypto space is the fact that invasive regulations and restrictions by central banks can be seen as yet another means of stockpiling precious assets. This time, not gold bars, but a limited monetary tool everyday people are now freely spending and saving more and more, with great effect: Bitcoin and crypto.
What are your thoughts on the De Nederlandsche Bank article? Let us know in the comments section below.