Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Robert A Cook PE

It is not as hard as you might think.

Trade was conducted for a very long time with gold and barter. The Arabs especially had a system that amount to letters of credit and a bank of settlements. I have read that they still do among small traders that operate in the old ways.

The way it works is to maintain identical ledgers and debit and credit accounts on those ledgers for international transactions. In the event of extremely large transactions the settlement might need to be in gold from reserves transferred from one account to another.

At some point, there is a clearing of accounts and actual gold is tranaferred from one to the other. A process like this actually occurs in the Federal Reserve of New York vaults where nations store their gold. the bullion is moved from one place to another within the vault to settle the international accounts. I think the ledgers are kept by the International Bank of Settlements in Geneva and the gold is transferred at storage vaults, one of which is at the New York Federal Reserve. .


9 posted on 12/23/2019 9:04:03 AM PST by bert ( (KE. NP. N.C. +12) Progressives are existential American enemies)
[ Post Reply | Private Reply | To 7 | View Replies ]


To: bert

After 9/11 it was revealed that Muslims already had a way (on a much smaller scale) of doing business across borders without much scrutiny; imagine that in the basement of a Quik-E-Mart or gas station in the US there is a similar set of cubbies in the wall, and when your cousin buys something from my cousin “over there” the “banker” take cash/gold/whatever worth the equivalent from the cubby marked “bert” and move it to mine.


11 posted on 12/23/2019 9:18:45 AM PST by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 9 | View Replies ]

To: bert

Has the Federal Reserve looked lately?


12 posted on 12/23/2019 9:20:00 AM PST by Does so (...Democrats only believe in democracy when they win the election...)
[ Post Reply | Private Reply | To 9 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson