Tag Archives: gold standard

reaction to:
Gold vigilantes are “The Untouchables.” The CME (Chicago Mercantile Exchange) is Al Capone.

Max,

Remember my commentary below? ICE is now accepting gold as collateral for energy trades and CDSs. If China, Japan, and other foreign holders of US dollar debt start writing CDSs on the US that settle in gold (to hedge their long dollar positions), it’s a back door way of moving the USD to the gold standard. Obviously, the gold delivery would be set to preserve the value of the contract.

Best,

Janet

Washington Must Ban U.S. Credit Derivatives as Traders Demand Gold

Huffington Post – March 8, 2010

Congress should act immediately to abolish credit default swaps on the United States, because these derivatives will foment distortions in global currencies and gold. Failure to act now will only mean the U.S. will be forced to act, after these “financial weapons of mass destruction” levy heavy casualties. These obligations now settle in euros, but the end game is to settle them in gold. This is so ripe for speculative manipulation that you might as well cover the U.S. map with a bull’s-eye.

Janet Tavakoli
President
Tavakoli Structured Finance, Inc.