GOLD 0.51% $1,391.7 gold futures

gold buying by central banks signals buy, page-2

  1. 4,388 Posts.
    Mr Parrot

    You say:

    "It is some Western media spin, under the influence of interested parties such as US banksters, that knowingly or unknowingly is still waging a gold disinformation campaign, as the last thing the banksters want is for Main Street investors to start removing what is left of their savings from banks and into gold and gold equities. The banksters are enjoying having the use of Main Street's money, while paying Main Street a paltry rate of interest that does not keep up with real inflation."

    I say:

    thumbs up

    The current situation in the US and elsewhere is that banks are continueing to decrease their inter bank lending. Credit is drying up. Westpac claim that they raised their interest rates higher than the reserve bank because they are continueing to supply credit to other banks. This apparently is in contrast to their peers.

    Why is inter bank loaning decreasing?

    Because mainstreet is either debted out, has no savings and demand for new credit is slumping OR mainstreet is taking its money out of savings and into other asset classes.

    Both scenarios are probably happening, each contributing to a slowing of credit creation and money velocity.

    Oh dear do I hear the deathnell of deflation arriving???? The US fed reserve continues to decree a long term low interest rate policy ......

    GC
 
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