Published on Fake Ben - The Secret Diary of Ben Bernanke (http://www.fakeben.com)
Bullion Banks and the POG
By cRavias
Created 04/03/2008 - 07:58

Having been lending Gold to bullion banks for a good part of the century now, wouldn't the G. have a vested interest in that gold returning to the treasury, if POG reaches a level of public mistrust and a demand for independent audit of treasury's gold could surface?

But how can this be done? Bullion banks are on the verge of declaring huge losses, as there is no investment they could have possibly taken to beat the POG increase plus the however minuscule gold interest.
What's Bernanke to do?

Is this why his first task seems to be to kill the POG growth, even if it done in the face of everything else falling apart? That is the grand unwinding that is still ahead, for even though the gold market is tiny, it is this tiny market that the bullion banks have to buy the gold at, to return it to the treasury.


Source URL: http://www.fakeben.com/node/133