The London Gold Pool has been reinstated and is holding gold to $1,300 and silver to $20, Jesse's Cafe Americain argues this week.
Jesse writes:
"Phase I of the current gold pool ended with the collapse of the Washington Agreement, which was an attempt to prop up a failing arrangement often called Bretton Woods II. This failure became unmistakable with the change in central bank behavior toward gold, from net sellers to net buyers, with the revolt of the BRICs.
"We are in Phase II now, which is a loose confederation of Western banks being led by the Fed and the Bank of England, which are attempting to maintain the status quo and U.S. dollar hegemony.
"But the Western banks are running a bit of a con game with the dollar, as it has already lasted well beyond its prime. You really cannot base global economics on a piece of paper that one country creates at will for its own domestic and foreign policy conveniences."
Jesse's commentary is headlined "How Long Can Phase II of the Gold Pool Be Sustained?" and it's posted here:
http://jessescrossroadscafe.blogspot.ca/2014/...nd-silver-we...
