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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (14485)	11/14/2008 1:42:05 AM
From: Nevada9999	Read Replies (1) \| Respond to of 71412

I've been intently watching all the bubbles too. Fascinating and absurd. People are finally catching on. <there wouldn't be anything to stop those who sold their leased gold from going into the physical market to cover their shorts, and return it to the government at a profit.> Not necessarily: Recently the share price of Volkswagen spiked to 1000 Euros, becoming the highest market cap company in the world. Porsche had bought 75% of the shares on the market with the intent of acquisition and only they knew it. There are no disclosure rules in Europe if an entity owns a large percentage of a public company. Hedge funds were eager to short any automaker in this market and Porsche left their VW shares available for borrowing. Apparently it got to the point that about 50% of the total shares were sold short. At that point Porsche announced that they owned 75% of the shares and they were acquiring the company. The shorts could not cover except by going to Porsche and they got burned badly. The German regulators said too bad. If memory serves, total above ground gold on this planet is 100,000, maybe 120,000 tonnes. The central banks claim 30,000 tonnes of that. At the peak of producer hedging there were allegations that up to half of the central bank gold had been leased out. Anyway, if the central banks bought gold and leased it out along with what they already own they could double their ownership while keeping supply greater than demand. They are not too far away from being able to pull the same trick Porsche did. The market psychology is right for shorting/hedging and everyone believes the central banks want the price lower. They could achieve what you describe with a short squeeze instead of a bubble and to their own benefit. They would be holding all of the cards and the shorts would be the patsies. It's just a sick tongue in cheek thought.