Basel III rules are all about doing away with the derivative paper markets to improve the physical spot market, and the Fed doesn’t want the dollar compromised by higher gold…
Tom Luongo on Palisades Gold Radio
Tom welcomes back the other Tom to the show. Please welcome, Tom Luongo producer of the Gold’s Goats and Guns blog and podcast. Tom is also an editor at Newsmax and a regular contributor to the Financial Intelligence Report.
The E.C.B. is capable of going bankrupt, unlike the Fed. The Euro is badly designed, perhaps intentionally. The E.C.B. needs a higher gold price because that’s the only asset on their books that has value. By raising rates, the Fed can force a sovereign debt crisis on Europe. Basel III rules are all about doing away with the derivative paper markets to improve the physical spot market. The Fed doesn’t want the dollar compromised by higher gold.
Tom believes the Fed will eventually bring rates up to six percent. There will be massive capital flows into the United States. Europe is going to have major problems, and with any luck, the Davos crowd will soon be gone.
Try and be flexible and keep in mind how the state of the game can change.
The goal is survival as these giants play, and gold is just a part of that equation. We all want to get through this the best way possible.