What if all the world’s currencies were backed by gold again? 🤔
Currently, the total foreign reserves of all countries stand at $12 trillion, while the total gold held by central banks is only 36,000 tons (≈ $4.2 trillion). If gold were to replace all fiat currencies, central banks would need trillions more in gold — but gold isn’t something you can just print or mine overnight.
The result? 📈 Gold prices would skyrocket, causing hyperinflation and a global financial collapse.
This is why the world moved away from the gold standard — and why a return to gold-backed currency is far more dangerous than most people think.
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