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Slange, I don't believe for one minute you understand what you...

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Dr.Who

4,679 Posts.

145

24/02/19

19:53

Post #: 37548509
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Originally posted by slange: ↑

The catalyst has already arrived with the Fed reversing course.
The next catalyst (unless something else breaks the surface) is that gold will soon become classified a tier 1 asset which means that gold will be classified as cash.
When you consider that gold is the worlds premier currency it should have always been classified as tier 1
But what it means is if you want to use it as collateral then it will be classified as 100% value instead of the previous 50%
This is a big deal.
I've prattled on (as I do ) about the bombing campaign that began in early April last year and this campaign was orchestrated because gold was moving to a breakout well above the 1375 level.
Now the reason that the breakout had to be stopped at all costs is that if gold did indeed breakout then it would indicate that confidence in the paper creators was beginning to fail.
A rise in the gold price on its own is not that big of a deal but when you take into account the amount of completely unpayable debt that continues to explode then the problem becomes a contagion risk and that means the government bond market which just happens to be the biggest ponzi scheme Known to man.
Be careful what you wish for guys because if you think an exploding gold price will be an isolated event then you might want to think again because an exploding gold price will almost certainly indicate a loss of control by the ruling class and an imploding bond market with much higher rates will more than likely appear meaning economies will be crushed and the poor fools that were induced to buy overpriced assets for under priced money will face a sharp reversal.

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Slange, I don't believe for one minute you understand what you are talking about. Your commentary smacks of reading a headline and drawing assumptions.

Gold as tier 1 has been a feature for years. That is not the point though. CB don't make loans, capital adequacy refers to loan making banks. How much gold does Commonwealth Bank hold? CB are the institutions that you and your band of merry followers like to refer to as buying big (though that is selective).

Sticking to your bombing raids theories, they are sort of entertaining.
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