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To: Little Joe who wrote (21680)	10/15/1998 12:55:00 AM
From: waldo	Respond to of 116782

" Friend of Anothers" explanation on how a CB can lend the same million ounces of gold many times over: <<Ever notice how all of the gold sales often state who sold the gold. The public statement deliberately poses the sell side of the equation because the seller can be known. If they printed it as a gold buy, then the buyer would be listed and the public left in the dark about the seller.------------------------------------ They do the same thing with the gold lending markets. -------Think about it.-------When the Dutch sell gold, we know it because their vaults have less gold to be reported. But when they lease gold, nothing ever leaves the vault?? Example: We know that in a gold lending deal, say, $300 million dollars are created and given to someone to play with. Party #1. We know that a Bullion Bank obtained $300m but don't know where? If no CB vault had $300m in gold (one million ounces) removed then the money didn't come from a gold sale. Now the contract can still be called a gold loan because it requires one million ounces of gold to be repaid. It didn't require that one million ounces be sold to create the money! Now, don't you think that a bank , operating in a fractional reserve environment, would be willing to create capitol by holding any 3rd parties collateral (in this case even dirt would due) for 1/2% to 1% plus fees and no risk whatsoever? You see, the CB gold only backs the deal. It's not sold in the event of default, it's delivered! Using fractional reserve banking, I wonder how many loans could be made with the same million ounces of gold? As to who are the 3rd party investors that helping to expand liquidity by really buying gold with in-ground reserves at a cheap price? When the dollar starts to come off the oil reserve standard, we will all find out.>> usagold.com W