Confusion and ExplosionThey both end with "sion"
Naked uncovered contracts on the COMEX will continue...in Reality supply side is rapidly diminishing at the LBMA with Banks, Russia China accumulating.
The basis for the 300 to 1...is from Fractional Banking proposed by several hedge funds to the U.S Government
It goes like this.......
- At any one given time no more than 3% of people with demand physical gold that means 97 % are comfortable...holding paper. So we can leverage 97 % of all stored gold !!
- So 1 / 300 is 0.33 % about 9 fold higher than the original fractional banking recommendations. Interesting !!!
We saw this before. Pooled lousy mortgages...but if you ool enough of the lousy mortgages...then it becomes grade A top choice ? Not likely.....but pensions bought in and got soaked !
Hold on tight don't cancel the Scotch Tasting, or Country Club membership just yet ! Maybe cancel the high priced call girls...( just Ask Mr Sheen )
We will hit....400 to 1 maybe 600 to 1...
As supply dwindles....gold will spike...notice a 12 dollar ( 1.2%) rise and fall inside 4 hours the other day....
She's looking good hang on tight...were in a worldwide recesion and have been for about 2 years
GLTA