[demsux]

I’ve increased my gold holdings due in large part to the similarities between the Carter years and now.

[FromLori]

ping

Schiff goes toe to toe with Bullard

http://networkedblogs.com/p18740636

[dennisw]

The central bankers love their fiat currencies and despise gold. Gold makes their fiat currencies look bad and this is especially true these days.

Since Ben Bernanke is the big man behind the planet's most powerful fiat currency he despises gold the most. For years I didn't understand what GATA was complaining about. Its main complaint is the gold leasing racket which has been suppressing the au price for years. This artificial suppression is coming undone and au is rising to its natural price 

Gold leasing works this way--
Central banks such as the German, the UK one, the USA lease (lend actually) their gold at very low interest rates to bullion banks which are sophisticated banks that are big in the au business. It could also be a giant like Goldman Sachs. There is a covert understanding that the Central Bank will never ask for the gold back. It is out on permanent loan according to a freeper. So that the likes of GS or a bullion bank don't get caught in a jam. The bullion bank then sells gold short at critical moments when it knows it can jam the longs and bankrupt them or drive them out of the *all of a sudden very risky gold business*

Another explanation
The Gold Carry Trade

A carry trade where you borrow and pay interest in order to buy something else that has higher interest. The gold carry trade works as follows. A central bank loans a bank (sometimes called a bullion bank) some gold. The gold lease rate is usually very low. The bullion bank immediately sells the gold and invests in securities with a higher rate of return, such as government long-term bonds. The carry return is the return on the bonds minus the gold lease rate. However, this trade is risky on two dimensions. First, if the bullion bank invested in long-term bonds and the interest rate goes up, the trade could be unprofitable. More seriously, the bullion bank has effectively sold the gold short. If the loan is called by the Central bank and if gold has risen in value, the bullion bank will have to go into the market and purchase higher priced gold. Indeed, if many banks are short, the unwinding of the gold carry trade could drive the gold price even higher.

 

[Cicero]

Well, Bernanke is also famous for saying that the Fed has a “printing press.” Also, that if necessary, he could drop money out of helicopters.

He is still well known by his nickname, Helicopter Ben.

[A.A. Cunningham]

http://www.zerohedge.com/article/bernanke-vs-gold-getting-hostile

[The Comedian]

”It is not obvious to me that there are any misalignments in the US financial system”.

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.