Loading ...According to Alasdair Macleod , with the global debt profile going increasingly into the negative, the bullion banks (the bankers) can no longer lease gold out, removing that rather large source of artificial supply. Add that to the inverse of this equation, where it will pay in the future to borrow money to buy real things the more rates go negative, and you have yourself the bankers worst nightmare — inflicted upon themselves the more they send rates negative in an attempt to save the present system.
So the only question now is how much they have out in legacy gold/bond carry trade/short gold they must cover at some point.
I’m hoping it’s a lot.
Cheers