Why countries deciding to park gold within their national borders rather than in the Federal Reserve Bank of New York? The US federal debt, its potential impact on the US dollar's reserve currency status, and the risks it poses to the US economy. #petrodollar #gold #USEconomy

COUNTRIES PARKING COLD WITHIN THEIR BORDERS RATHER IN THE FEDERAL RESERVE BANK OF NEW YORK.

There are several reasons why countries are choosing to park gold within their borders rather than in the Federal Reserve Bank of New York (FRBNY). 

• To protect their wealth from economic instability. Gold is a valuable asset that has historically held its value well during times of economic turmoil. By storing their gold within their borders, countries can ensure that their wealth is not at risk of being seized or frozen in the event of a financial crisis.
• To hedge against inflation. Gold is a good hedge against inflation, as its value tends to rise when the prices of other assets, such as stocks and bonds, fall. By holding gold, countries can protect their wealth from the effects of inflation.
• To increase their national security. Gold is a valuable strategic asset that can be used to finance national defense or to shore up a country's currency in times of crisis. By storing their gold within their borders, countries can ensure that this asset is not at risk of being seized by a foreign power.
• To signal their economic strength. Gold is seen as a symbol of wealth and stability. By accumulating gold, countries can signal to the world that they are a strong and prosperous economy.

As for whether the global currency is shifting from the dollar, there is some evidence to suggest that this is the case. For example, the Chinese yuan is becoming more widely used in international trade, and the euro is becoming more popular as a reserve currency. However, the dollar remains the world's dominant currency, and it is not clear that this will change in the near future.

Ultimately, the decision of whether to park gold within their borders or in the FRBNY is a strategic one that each country must make for itself. The factors that they will consider will include their economic stability, their inflation risk, their national security, and their desire to signal their economic strength.

ASSETS FREEZING POLITICS:

The history of assets freezing has played a role in countries' decisions to park gold within their borders. In the past, there have been several instances where countries' assets have been frozen by foreign governments, often as a political punishment. For example, in 2014, the United States and European Union froze the assets of several Russian banks and individuals in response to Russia's annexation of Crimea. This event led several countries, including Russia, to move their gold reserves out of the United States and Europe and into their own central banks.

The risk of assets being frozen is a major concern for countries that hold their reserves in foreign countries. If a country's assets are frozen, they may not be able to access them to finance their budget, defend their currency, or respond to a financial crisis. This is why countries are increasingly choosing to park their gold within their borders, where they have more control over it.

• Here are some specific examples of how assets freezing has played a role in countries' decisions to park gold within their borders:In 2011, the Libyan government of Muammar Gaddafi had its assets frozen by the United States and European Union in response to the country's civil war. This led Libya to move its gold reserves out of the United States and Europe and into its own central bank.
• In 2014, the Ukrainian government had its assets frozen by Russia in response to the country's revolution. This led Ukraine to move its gold reserves out of Russia and into other countries.
• In 2018, the United States imposed sanctions on Iran that froze the country's assets in the United States. This led Iran to move its gold reserves out of the United States and into other countries.

These are just a few examples of how assets freezing has played a role in countries' decisions to park gold within their borders. As the risk of assets being frozen continues to grow, it is likely that more countries will choose to do the same.