Gold is getting Trumped
Vinny Lingham
10116

Why would certain governments suppress gold? That’s assuming those governments are actually the holders of the gold and not their central bankers, two different entities, the former being debtor bitches to the latter. Central banks would desire that human producers continue to use their paper tokens, which represent human output, rather than more limited supplies of gold, as money. That’s why they would suppress the price of gold. The practice of fractional reserve banking, whether it be with banking or in the commodities markets, selling paper representations of the physical commodity (where contracts obligate holders to accept settlement in cash to avoid default of the exchange), is along the same lines as naked short selling.

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