

andrew
3.7K posts






On July 7, 1971, Paul Volcker arrived in The Netherlands to tell then President of the Dutch central bank, Jelle Zijlstra, to cancel a request for converting $250 million dollars into gold. Zijlstra said he would not cancel the request because he only held on to dollars as working stock, to which Volcker said: “You are rocking the boat.” Zijlstra replied that if a conversion of $250 million dollars rocks the boat, that boat has already sunk. On August 15, 1971, the US suspended dollar conversion into gold altogether.


Banks are pocketing real money by borrowing money from the Fed's newest backstop facility, which charges a lower rate, and then parking it at another unit of the Fed, which pays higher interest. Banks are borrowing record amounts from this new facility. bloomberg.com/news/articles/…













