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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (11040)	11/4/2006 12:20:48 AM
From: Square_Dealings	Read Replies (1) \| Respond to of 218659

<Why would someone borrow money and pay interest since it could just sell the gold for the money it needs.> You have it backwards. Someone borrows gold to sell for "money". This "transaction" is called a carry trade. Except if you borrow too much of anything it can be a problem if you cant pay it back. This borrowing of gold and money is known as "debt". Someone is trying to convince us that there is no limit to "debt" and that no matter how big it gets it can always be paid back given enough time. So far so good. sd