Re: [gang8] Dollar Hegemony Revisited

["Gary Santos" <evs@xxxxxxxxxxxx>]

> Hugh Whinfrey wrote:
>
> >William notes:
> >
> >>What is in it for them as individuals?  Why would
> >> they risk their hard-earned reputations and possible jail time by such
> >> a conspiracy?  And what would they gain by destroying the economies of
> >> developing countries?
> >
> >Folks all over the world are asking these questions. So you're
> >certainly not alone in posing them.
>
> This is a non-answer.  The questions were directed at you.  I'll
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The gold carry trade effectively recapitalized two large banks and other
money that was needed to be created without going into Federal funds. The
size of gold producer hedging is by one estimate only 10% of the total short
position. Whoever took a short position in 1995 has been making a huge
cotango considering the spreads available then. I don't think any conspiracy
against African gold producing countries takes any part in this although the
point is being made that this has been one result of the downward pressure
on price since 1995 or so. Maybe the mess was started when some bright MBA
saw an opportunity to solve a debt problem.