Central Banks and Gold Sale Threats Message Board

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Gold/Mining/Energy : Central Banks and Gold Sale Threats

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To: NOW who wrote (47)	6/10/2004 3:16:45 PM
From: Canuck Dave	Read Replies (1) of 54

Of course, you're right. Only problem they've got is they can't do it forever. I think you can make a pretty good case that the central banks formed a de-facto gold pool about 8 years ago and aggressively leased out gold to buy debt instruments. Point is, the gold isn't in the vaults any more and "someone" ultimately owes it back. GATA point out that many of these recent "sales" are really just bookmarking adjustments. The gold's already gone. Imagine what would happen if a single Western central bank were to make one gold-friendly announcement. Better still, look at the "net indebtedness" of the US versus interest rates. financialsense.com It's a bomb that will one day go off. Even a small increase in the discount rate will rock the leveraged borrowers. America is a sub-prime borrower. On that day, the rest of the world will want their money back, and all hell will break loose. There are signs the Fed is already starting to monetize (i.e. buy it themselves) debt. CD

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