US Allies Flee Gold Reserves Amid Trump-Era Distrust

Liberally-minded economist Paul Krugman has expressed concerns that the United States is no longer trusted by its allies due to President Donald Trump's actions. This distrust has led some countries to take precautions, including shifting their gold reserves from the Federal Reserve Bank of New York to other vaults in London and Paris.

The shift in gold reserves is a symbolic move, according to Krugman, as it indicates that foreign governments can no longer rely on the US to uphold basic rules. The economist notes that while the economic impact of this action will be minimal, the trust lost by the US may take years to restore even after Trump leaves office.

The Dutch Central Bank has shifted $12 billion in gold from New York to London's vault, following a similar move by the French Central Bank, which transferred an even larger sum to Paris. Other countries are reportedly considering similar actions.