The Road to Bullion Default: Part I
Rather, the vast majority of this leverage exists in the previously mentioned derivatives casino; where the manipulative bullion banks have permanent, gigantic and ever-growing bets that bullion prices will decline. Much like the banksters have used their gigantic (multi-
trillion dollar) bets in credit default swaps market to
There is, however, one enormous difference between the 100% paper debt markets and bullion markets. The bullion markets require physical bullion to settle all trades where buyers insist on taking delivery and (as previously mentioned) the long-term consequence of under-pricing bullion is the collapse (to zero) of bullion inventories.
If large gold stockpiles mean that a formal default in bullion trading could likely be forestalled for a considerable period of time, what other default-like event could detonate the bankers' fraudulent paradigm of 100:1 leverage? In a word, "decoupling."
In Part II, I'll explain this concept in detail, and analyze the dynamics which could lead to this event.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts