RE: Greenpotz needs gold but wont admitI disagree. Greenspan has the world on a one way gold trade basis. In other words he has made the dollar as good as gold by ensuring the the US trade weighted basket of currencies price of gold (I believe referred to as Diverg price) stays more or less constant.
This has been held together with one concept: Central banks may not buy gold; they must sell or lease gold. (that is the central banks in the club) Now, having gotten the G-7 and probably more like the top 15 cbs to sign on to this concept,combined with the US manipulating gold thru its special group that reports to noone save the President and the Secr. of treasury, they can control the situation until they run out of gold.
Note that all countries in agreement are screwing themselves at the expense of the US, except that they get to send more exports to US and keep their people employed. Bush cares less about his own; he has crusade work to do. Now normally in the old days when a country owed you too much, you demand payment in gold or cut them off. Effectively, you take their US currency and buy gold with it; the US currency denominated treasuries (no CB holds cash) are sold and the price goes down, so the yield goes up,( which means noone trusts them to repay) so interest rates are forced up in the US which forces a slowdown of imports and a dose of reality through recession until they get their act together and start producing economically.
BUT this is not allowed anymore by all the dumbass countries going along with this silly strong dollar policy. It is strong because we are deaf, dumb and blind.