the secret return to a 'gold standard', page-26

Fibonarchery

"So basically the 'collateral' value of gold is and has always been 100%, to simplify?"

No. CME apply a 15% haircut to bullion collateral.

http://www.cmegroup.com/clearing/financial-and-collateral-management/#gold


Spanner

With due respect, either Washingtonblog.com doesn't understand regulatory capital or they are wilfully misleading their readers. Don't assume anything you read is true just because you want it to be true.


Justlooking

"Gold is money"

You may think so, but the BIS, CME, most central banks, prudential regulators and commercial banks don't.

But don't trust my word. Test it for yourself. See if Woolies will take gold coins next time you are buying groceries.


Kgtom

The decline of the US, like the death of Marm Twain, has been greatly exaggerated (but I can't be bothered arguing the toss at 10:00pm on a Friday night).


Cheers to all