I didn't say I like it or supported it but I guarantee it wouldn't be the end of the free market and yes it's kind of like nationalizing an asset. The US has possession of the gold and they write a paper IOU at today's price for the gold. Gone long ago are the days that DeGaulle (sp?) could waltz in and demand delivery of gold and get it, Nixon ended this in 1971 for fear of the US ending with no gold which would have been a disaster for the dollar reserve status. I know central bankers call gold a barbarous relic but I note the large western central banks hold most of their reserves in gold and the eastern central banks want their share now to provide stability and backing for their currencies. Ergo we all know you can't believe much a central bankers says. Only in Canada are we so stupid to have sold off most of our gold assets and long before that idiot Brown in Britain did.

Do you not think the US will play this card if they see little other option?? Would Germany or France not play this card if they had too and possessed the gold, of course they would. This beggar thay neighbour approach and currency wars will likely last for years yet as printing goes hyperbolic, exchange controls spread, tariffs are placed and rates remain comatose at close to zero unless there is a huge shift and soon in US fiscal and monetary policy including major changes to unfunded liablities in Europe which I highly doubt.

The fools here are those countries who have gold on deposit with the Fed in NY and of course the reason it is on deposit is they have likely been loaning or leasing it playing games to suppress the gold price in all likelihood, live by the sword, die by the sword. Who in their right mind would own gold or silver and let some major bank or central bank institution or the CME Crimex market store it for them, hard to understand given the historical track record of governements and these institutions and considering the present environment and circumstances.

Markets will never end but adapt as always just like people do and have for centuries of this I am absolutely confident. I also wouldn't under-estimate the US and how they may react, what they will do or their resilience to rise up from what appears a train wreck situation.