I’ve read many times how one bank has leased gold to another bank. What exactly does this accomplish? If gold is not legal tender in the receiving country, of what value does it provide the borrowing entity?
It is the use of sound money. apparently use serfs cannot do it this way.
http://www.silvermonthly.com/208/central-banks-lease-gold-silver-distorting-markets-balance-sheets/
Thank you, Jacob. That link provided the clear-cut explaination that I had sought. I always suspected that it involved the borrower gambling with the leased gold. Now I know for certain.