Thats great info Timber. Perhaps we can unpack this some more.
2008 showed that upsets in the credit markets can trigger credit default swaps. And the sellers of such products may not be able to pay. AIG couldnt pay - so the taxpayer paid on their behalf. Apparently there's 100's of trillions (notional) of these things out there today.
Getting back to the stupid idea now - central banks that increase their gold holdings & subsequently lease it to parties with an impaired net exposure because CDS counterparties cant pay.
Where am I going with this? Im trying to find other angles to the rising gold story.
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Thats great info Timber. Perhaps we can unpack this some...
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