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overtheedge
Member since May 2012
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Gold Daily and Silver Weekly Charts - When the Unsustainable No Longer Sustains - Jesse - Le Cafe Américain

Just a what-if possibility.

If you have rehypothecated gold, sold it and delivered the physical, how could you replace the physical?
Perhaps drive the price down and accept that 30%, 50% or even 70% of the physical gets sucked into the Chindia blackhole.
At least the portion that comes available can be used to replace the physical that no longer exists in the vault.
At current spot, there is even the possibility of turning a profit to boot.
It would be most clever to replace the gold that was owned by deep pockets first as they probably have the financial resources to whip your posterior in court.
Small holders lacking deep pockets could be forced to accept cash in lieu of physical.

Imagine the loss of a tax revenue stream if the rehypothecators were to go bust.
Never underestimate the government's willingness to protect tax revenue streams.
As I recall it was Calvin Coolidge that stated, "The business of America is business".
Why do you suppose there has been plenty of fines, but no loss of business licenses and pretty much no jail? Not even a few perp walks.

Commented 3151 days ago

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Beginning of the headline :“Crime, once exposed, has no refuge but in audacity.” Tacitus, Annals Gold and silver were hit early on today, and knocked lower on high volume in relatively quiet trade, while the stock market was being pumped higher. The Fed would like to set the stage for their FOMC meeting next week, and rather badly so. They are afraid to do it with these unstable equity and bond markets, because if they raise and then the market breaks, then they will be blamed for it. You can see that the IMF and th... Read More

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