Jewish Press: About the world economy, the Bank of Israel stated, “The risks to the global economy have become more severe since the last interest rate decision, mainly in view of the worsening ‘trade war.’ Interest rates were lowered in the US and other economies, and further reductions are expected. In Europe, further monetary accommodation is expected.”
So, for the time being, relative stability. But the Bank of Israel, has a potential serious problem looming. All it’s assets are held as a basket of reserve currencies, Dollars, Euros, Yen, Pounds, etc. That’s what backs up the Israeli Shekel. Israel sold all its gold holdings in the early 1960s.
And fiat money, i.e. worthless paper printed by governments, is quickly becoming just that, worthless!. more …
Opinion: Anyone who has been on this site will know how dangerous it is for governments to print money to finance political malfeasance. Quantitative Easing, creating money out of thin air, debases money in existence causing hardship on the poor and middle class. The wealthy grow more wealthy because asset prices, like stocks, bonds and real estate skyrocket making the wealth gap expand.
Civil strife is inevitable.
But I want you to see the rest of the reason that owning hard assets makes sense for Israel so let’s go back to the article:
“When King David told his son Solomon, about his preparations to build the Holy Temple, he said, “Behold, I have taken much trouble to prepare for the House of the Lord, one hundred thousand talents of gold [about 3,500 tons worth about $1.63Trillion] and one million talents of silver [about 35,000 tons worth about $19.58Billion], and bronze and iron beyond measure, for it is so abundant. I have prepared timber and stone also, and you may add to them” (1 Chronicles 22:14).
King David throughout his rule, stockpiled in his treasury, precious metals, and other resources, for the building of the Beit HaMikdash, the Holy Temple, and the utensils used in it. This preparation, also bolstered the kingdom’s economic clout.
King Solomon ruled from about 970 BCE to 931 BCE, and during this time he is said to have received 25 tons of gold for each of the 39 years of his reign, which would be worth about $48 Billion in 2019. Along with the other riches he amassed from taxation and trade, King Solomon’s personal fortune has been estimated to be over $2.2 Trillion in today’s money.
King Solomon inherited peace on his borders and a thriving economy from his father. The kingdom was an economic superpower. When the time came for King Solomon to start the construction of the Beit HaMikdash, he had all the resources needed.
Israel should learn from King David and do the same today!”
And, perhaps, so should we.