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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Mike M2 who wrote (101687)2/27/2009 12:15:46 AM
From: Hawkmoon  Read Replies (1) of 110194
 
Well.. I do know this. The Fed/Treasury would like to control gold because of the perception of it competing against the current financial system.

And if they have the final claim on that gold that is being leased, if the POG reaches such a point where it threatens the "sanctity" of the USD, they are going to call in those leases and some buillion banks are going to get squeezed.

No different than if I "lease" my money to a bank by depositing it. The minute I place a demand for my money back that institution had better cough it up ASAP.

But I concur that leasing gold is obviously a means of quashing speculation. If investors find that supply is exceeding their demand, it will pop their bubble.

Hawk
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