Morgan analyst hints at need for unlimited paper gold
Dear Friend of GATA and Gold:
In a research note published this week an analyst for JPMorgan Securities Inc., John Bridges, more or less explains why central banks hate gold -- for its being a competitor with their own forms of money.
The analyst, John Bridges, wrote: "A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited. We believe the European version of 'QE' [quantitative easing] is generating serious currency worries. ..."
That observation hints at why Western central banks and the International Monetary Fund backstop the London Bullion Market Association and the New York Commodities Exchange in their sales of unlimited and largely unbacked paper gold: so that the world may be deceived into thinking that the gold supply is a lot larger than it is, so the world is deprived of its traditional hedge against monetary debasement, and so potentially "unlimited" demand for gold can be met with unlimited supply of imaginary gold, thereby sustaining confidence in government currencies and the power of governments to inflate and reap the profits and power of the hidden tax of inflation.
You can find the Morgan gold report here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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