Chris Powell of GATA took exception
to my comments about the financialisation of the gold market in my post
on Friday, saying that “the more that markets are ‘financialized,’ the more advantage passes to those with the greater access to financing”
. I would argue that increasing financialisation increases the advantage of the average investor. [read more
The problem is that paper derivatives are NOT "just tools".ReplyDelete
They have become the price-setting mechanism for the real item...which would be fine IF each and every derivative bet (because who's kidding who? that's what they are!) were 100% covered by unencumbered physical bullion...which they AREN'T.
And that, plain and simple, is just as fraudulent as is fractional reserve banking itself.