This gold is supplied by bullion banks via the swaps to the BIS. The gold is then deposited in BIS gold sight accounts (unallocated gold accounts) at major central banks such as the Federal Reserve.
Long-term, I am the ultimate optimist about the US economy. We are just that damn good. But in the short term, we are hobbled by a Federal Reserve that has made too many mistakes..
Andrew Maguire shares word from an inside source that Basel III compliance has driven a top-tier bank to unload the last of their unallocated gold contracts.
Both China and Russia play hugely important roles in the global economy. Both face economic sanctions from the United States. And both are eyeing long-term strategies..
Now, as to whether or not the Fed will be able to catch up to the curve in any reasonable time frame, that’s another question altogether. It looks daunting, and I think the Jawbones know it.
The Federal Reserve's increasing dependence on the high-risk strategy of using massive amounts of overnight reverse repurchase agreements (reverse repos) as the long-term source of funding for the national debt.
There's a lot of misunderstanding and misinformation floating regarding rising interest rates and gold prices. Let's take some time today to try to clear things up.
