I am glad that you enjoy my posts. I enjoy writing them.
The thing about being 50 something is that I was around in 1980-81 and I saw the damage done to gold speculators of that generation when gold plummeted from $850 to $300. I since worked on large structured gold transactions, and have seen first hand the rationale underpinning the principal flows and their place in global markets. Those understandings makes most of the posting on these HC gold threads seem naive.
You accuse me of having "undying faith in fiat money and world government". I think that you are miss-representing me and would appreciate you citing any post I have made that says as much. Don't put words in my mouth!
I don't have faith in anything. Least of all in the intrinsic value of a shiny metal that is only useful for making jewellery and electronic components.
Barndog
APRA is worried about covered bonds as well. They don't like the idea of other creditors taking precedence over bank depositors in a liquidation. They lost that fight largely because it will be difficult for Australian banks to comply with the new Basel III liquidity requirements. Covered bonds give Australian banks longer duration liabilities.
Owners of covered bonds have claims over certain bank assets, not claims over depositors funds.
My sanguine attitude to the safety of bank deposits is based on my judgement of the integrity of the Australian banking system. You think it may collapse, I don't think it will. We will just have to wait and see who is right.
