tag:blogger.com,1999:blog-6089228851855763774.post7822969479400945613..comments2024-03-29T07:10:06.022+08:00Comments on Gold Chat: Fractional reserve bullion banking and gold bank runs - a bullion bank's "assets"Bron Sucheckihttp://www.blogger.com/profile/00530576934994289879noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6089228851855763774.post-49829144069743417562014-02-05T15:26:14.254+08:002014-02-05T15:26:14.254+08:00Justin,
We don't believe BB unallocated is as...Justin,<br /><br />We don't believe BB unallocated is as good as gold. We keep unallocated accounts with BB for transaction/settlement purposes only, as does anyone in the professional market. A necessary evil and one that we control/limit to minimise exposure.Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-90271903045844615762014-02-05T09:10:01.185+08:002014-02-05T09:10:01.185+08:00Surely the criteria that needs to be applied is wh...Surely the criteria that needs to be applied is whether gold will bid for BB assets? Only if physical gold no longer bids for BB credit (unallocated gold) will there be a run on the BB.<br /><br />The Perth Mint must believe BB assets are 'good as gold'? Otherwise why would the Perth Mint keep unallocated accounts with BB's?Justinnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-90364037702567791232014-02-05T07:12:41.006+08:002014-02-05T07:12:41.006+08:00Hey, I understand......... just had a need to vent...Hey, I understand......... just had a need to vent. <br /><br />Just feeling we're getting closer to the edge. :)JohnMnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-72554009867033974202014-02-05T07:08:53.080+08:002014-02-05T07:08:53.080+08:00JohnM: Eloquent essay, but as a precis, I see noth...JohnM: Eloquent essay, but as a precis, I see nothing of value (i.e., nothing new) in your comments other than a well-disguised rant. Sorry, had to say it, as I too am looking at it from the other side of your looking glass.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-23158599425015518832014-02-04T23:16:09.336+08:002014-02-04T23:16:09.336+08:00I agree on informative. I appreciate your insight....I agree on informative. I appreciate your insight. Now my two bits for what it's worth.<br /><br />I look at this from the other side of the looking glass. <br /><br />The BB entities are primarily speculating in fiat and derivatives of the fiat cascade that runs to interest rate products and the multitude of permutations thereof. I exclude there business relationships with gold producers, refiners, jewellers and minters.<br /><br />This is a normal progression of using sound collateral to invest in second and third tier (and even lower) investment speculations that through rational risk management will likely result in a return of the collateral and a profit. <br /><br />My concerns are that the tail has come to wag the dog. There is an effort on the part of central banks to subvert Exter's Pyramid by replacing government obligations in the form of fiat currency, bonds, bills, etc. over physical gold. In a well run economy (balanced budgets for one), government obligations and their spin-offs are a profitable location for investing sound collateral. The central banks (and their minions :)) have shown themselves as untrustworthy, incompetent and self aggrandizing. The purchasing power of their replacement for sound “money” continues to rot before our eyes. In some places faster (Argentina, India, Venezuela, Turkey, etc.) than others.<br /><br />The Bullion Banks through the central bank system are a major tool of a self serving elite (though they may profess to be doing “God's work”) that seeks to replace economic reality (uncoerced exchange of goods and services) with their own dictated version of value. Nothing really new here since governments/societies have done this throughout history..... and this has never ended well. Whether through desperation or plan, they have reached point of strong potential of collapse of the financial world as we know it. They are using increasingly blatant and extreme tools (all illegal as far as I'm concerned) to buttress their crumbling edifice. I'll be charitable and state that this may not have been the original goal.<br /><br />Much more to be said, but I don't want to write a book. LOLJohnMnoreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-81160002611477458492014-02-04T19:29:17.282+08:002014-02-04T19:29:17.282+08:00informative thanks :-)informative thanks :-)obakesanhttps://www.blogger.com/profile/13743339737847465926noreply@blogger.com