FAST FIVE: Will Germany Repatriate Its Gold From New York If Trump Wins The Election?

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During Bretton Woods the US dollar was the world reserve currency, backed by gold at a fixed parity of $35 per troy ounce.

Initially, European allies provided support to defend the gold-dollar parity in the free market through the London Gold Pool, and stabilize the international monetary system.

Naturally, the US wanted to have as few dollars redeemed as possible to sustain the dollar hegemony.

Germany might be waiting for the elections in the US, because Biden can change America's foreign policy.

One, if Germany repatriates because of a political dispute, this can incentivize other countries to repatriate from New York as well, causing a run on the Fed.

Categories: ZH