[e-gold-list] Re: Another in the series: "Will the media deign to notice?"

[Patrick Chkoreff]

jray wrote:
> http://www.vdare.com/misc/070912_paul.htm
> 
> see especially the gold price manipulation words at the end
> of the interview...Could what we've been seeing & saying
> on this very list *FOR YEARS* finally become a political
> issue that's actually discussed honestly?


The gyrations used to keep the gold spot price lower are amazing.  As
the article points out, it's not just "dumping central bank reserves"
anymore -- the gold market has essentially become a fractional reserve
system through the process of bullion banks leasing gold, which gets
sold, and then deposited again in a bullion bank, where it is leased and
sold again, ad nauseum.

So I view the current "spot price" as an opportunity to lay my hands on
actual physical gold, i.e. make a "run on the bullion bank" just as
there is a run on the fiat bank in the UK right now.  But in the case of
gold, we are all at the head of the queue right now.

If all the people who supposedly "own" gold right now on paper were to
demand delivery of it, I suspect there is not nearly enough gold to go
around.

I cannot prove this thesis of mine, but it seems to me that the leasing
of gold on a fractional reserve basis in bullion banks is an exact
parallel of how the fiat banking system works.

The key question there however is whether or not a bullion bank can
accept "deposits" of paper gold ownership, and lend on top of those
"deposits", thus creating a money multiplier.  I am not *certain* that
is the case, so my analogy with fiat banking may be flawed.


-- Patrick


---
You are currently subscribed to e-gold-list as: e-gold-list at kobly.com
To unsubscribe send a blank email to leave-e-gold-list-512001C at talk.e-gold.com

Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.