This is a self-reinforcing feedback loop. The more gold the [central bank]s buy, the more incentive they have to buy gold. Because if the game ends with gold winning, the game will be scored by how much gold you got for your dollars. This will be a consequence of how soon the CB exchanged its dollars for gold. Devil take the hindmost! A classic panic scenario. A melt-up for gold; a melt-down for the dollar.
Caveat lector: Mr Moldbug, whilst very clever, is also batshit insane by standard definitions of the word (although I'm with Levant about the fine line). Enjoy his musings slowly, and in small doses. The views in his blog are his own, and do not reflect the views of the UK Libertarian Party.
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