With both Rome and Northern Italy under German occupation in 1943, the German occupiers pressurised the Banca d’Italia’s governor Azzolini to move the Italian gold north. Ultimately this led to 119 tonnes of Italian gold beingLess than 100 years ago, governments were constrained by their gold holdings, since doubtful prospects will be financed only to the extent they can be backed by gold. The Swiss, among others, were financing the fascist project, but required gold as collateral for their loans. Gold is the rich man's money, and silver the poor man's. When the rich man wants war (in the name of the poor man) he had to pay for it. In gold. Very limiting. WWII could last only 4 years. from Rome to the Banca d’Italia’s vaults in Milan. But the transfer to Milan turned out to be just an interim stopover since the Germans continued to pile on pressure to move the Italian gold to Berlin.
Eventually the fascist government capitulated fully to the German demands and 49.6 tonnes of Italian was moved from Fortezza to the Reichsbank vaults in Berlin, followed by an additional transfer of 21.7 tonnes, so in total 71.3 tonnes of Italian gold ended up in the Reichsbank in Berlin. ...
In the 1930s, the Bank for International Settlements Bank had invested substantially in Italian short-term treasury bills, which had a built-in gold conversion guarantee. Likewise, the Swiss National Bank held or was the representative for claims on some of the Italian gold. With the German pressure on the Italian gold in 1943, the BIS and SNB both became anxious about their investments and requested that their Italian gold-related be fully converted into gold with a view to moving the converted gold to the SNB vaults in Berne, Switzerland.
The Nazis wanted the Italian gold so people like the Bushes would continue to sell to them. This is part of the permanent, public record.
Gold is demanded in payment when it is unlikely to be future business. The Nazi's bet there was a future, theirs was the future, but had to put gold on the line. So it is with you and me.
If your associates believe there is a future for you, they will engage in vendor financing, and so will you. That is to say, like Steve Jobs, Tandy will give you time to pay for the parts you ordered, and Jobs will give his first customer, The Byte Shop, time to pay, that is to say credit.
Credit is asset-backed, non-interest-bearing obligation to pay. It is the natural order of things, it precedes barter and money. Money (usually gold and silver) evolved from the need to settle debts where no future business was likely. Hence the caravans were paid in gold and silver.
Today we have ex nihilo credit, at interest, as the basis of our economy. Look out below!
Older, more experienced cultures know from gold.
The Italian business community and public appear to be quite aware of the importance of the country’s gold reserves. In May 2013, the World Gold Council conducted a survey of Italian business leaders and citizens which included various questions about the Italian gold reserves. The findings showed that 92% of business leaders and 85% of citizens thought that the Italian gold reserves should play an important role in Italy’s economic recovery. There was very little appetite to sell any of the gold reserves, with only 4% of both citizens and business leaders being in favour of any gold sales.Yes, a gold standard, even a lite one from which we departed in 1971, constrains evil. The evil manifests in malinvestment and misallocation. The fascist project was workable, and our world today is largely fascist. The problem was the militarization of fascism, which ended badly for the Nazis, and will for us too. Italians know a gold standard is the central constraint on evil government.
Wish we knew that, but we are learning.
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