Gold Short Squeeze is on! NYSE-LIFFE runs out of gold bars

March 27, 2009 Jack The Big Picture 0

Avery Goodman writes:


In the first Great Depression, the government tried, for several years, between 1929 and 1933, to maintain a fiction that the U.S. dollar was still convertible and as “good as gold”, in spite of having irresponsibly printed more dollars than they had gold to back them. Back in the 1920s, just like during the last 22 years, the Federal Reserve had run its printing press overtime, and, as a result, it couldn’t deliver. The U.S. Treasury eventually ran out of the gold, in the face of overwhelming public demand, resulting in the infamous gold confiscation order, by President Franklin Roosevelt, in 1933. History may be repeating itself, except that the government no longer makes any pretension to maintaining a gold standard, or any standards at all. Instead, nowadays, the futures exchanges offer to trade gold for a floating number of dollars, and, it appears, they have printed more paper contracts than they can redeem, at least when it comes to 1 kilogram bars.

Add to my social media sites
SubscribeDiggdel.icio.usFacebookRedditStumbleUponTechnorati




Related Articles

No Picture
The Big Picture

2013 Will Be Lucky for Gold and Mining Stocks, Iacono Research

January 2, 2013 Jack The Big Picture Comments Off on 2013 Will Be Lucky for Gold and Mining Stocks, Iacono Research

2013 will be the “blowoff” year for the gold bull market according to analyst Tom Iacono. Investors are “seriously underweight metals and mining stocks” and low real interest rates are bullish for metals. Article Add […]

Add to my social media sites
SubscribeDiggdel.icio.usFacebookRedditStumbleUponTechnorati

Be the first to comment

Leave a Reply