“Central banks are already suffering significant losses as a result of the falling value of the bonds they hold on their balance sheets. The European Central Bank, the U.S. Federal Reserve, the Bank of England, the Swiss National Bank, and the Australian central bank all now face possible losses of more than $1 trillion altogether.”
Poster Comment:
Bonds lose value as purchasing power declines. At some point they will have to drop holding dollars and hold almost only only gold. At that point, people will want the convenience of a gold backed currency.