FOFOA: The 21st-century bank run
Dear Friend of GATA and Gold (and Silver):
After some review of monetary history, the FOFOA (Friend of Friend of Another) blog tonight examines the recent statements made by CPM Group Managing Director Jeff Christian to the March 25 hearing of the U.S. Commodity Futures Trading Commission and to Jim Puplava's Financial Sense Newshour program on April 10, as well as the statements made this week to King World News by Omnis consulting firm Senior Managing Director Jim Rickards.
In their various comments Christian and Rickards both confirmed that the investment bank gold business is actually a fractional-reserve scheme that cannot produce even a large fraction of the gold claims it has sold. But FOFOA argues that Rickards' idea of returning the United States to a gold standard with convertibility and gold highly priced, around $5,500, would be just as likely to destroy the dollar and Wall Street as to save them.
The FOFOA commentary is headlined "The 21st-Century Bank Run" and you can find it here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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