The Aristocrats (tm) Message Board

From: sense	8/8/2012 4:50:21 PM
	of 196

Another view of the "gold as a tier 1 asset" story... theaureport.com Doesn't exactly point it out... but, that they ARE making gold a tier 1 asset... means they DO expect to see inflation occurring at a pace that will have it eroding the value of the currencies being held by the banks... ? The problem with the "bailouts"... is that it has banks holding onto cash that is being created, and not applying it in the economy... simply reloaning it back to the government that GAVE it to them... expecting it to matter. Accelerating inflation will force the banks to move cash into more productive uses... investing it... or have it lose value, over time... UNLESS THEY BUY GOLD... So, inflation is necessary to make "the tools" that the Fed has actually work... while the banks are trying to make them NOT work... The current "pull back".. has enabled central banks to come into the market as buyers... loading up on gold... Now, they're changing the rules... which will change what the banks do with their money...