Former Treasury official Roberts marvels at claims to imaginary gold
Interviewed by King World News today, former Assistant U.S. Treasury Secretary Paul Craig Roberts marvels at the perversion of ordinary markets by derivatives and particularly the explosion of paper claims on gold that doesn't exist.
"What this shows," Roberts says, "is the consequence of repealing the position limits on speculation, because you now have a situation where derivatives drive the actual physical market. This is the exact opposite of what sound economics would have. ... At some point even the people gambling in this market have got to see this can't continue to work. I dont really understand how it's gone on this long, and I don't see how it can continue, particularly when the paper claims so vastly exceed the actual supply."
An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.