The Phaserl


Another Investigation…Ho Hum

by Bill Holter, Miles Franklin:

News came out late Tuesday that the gold market will be investigated in London for price fixing in similar fashion to the Li (e) bor (London interbank offer rate) rates. I have absolutely zero doubt that this is true with the exception of one minor detail. In the case of Li (e) bor, the “fixing” of rates was between dealers. Yes it did benefit the central banks and various global treasuries with rates lower than they would have been but I am skeptical that any direct coordination existed between firms and central banks. As I’ve written prior, I was somewhat surprised that any blame or fingers were pointed in this episode because it does hit pretty close to central banks homes.

Gold price “fixing is a whole different story because a part of the “mechanism” to suppress price comes directly from central banks and treasuries themselves. Namely the physical gold itself is to make delivery.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

2 comments to Another Investigation…Ho Hum

  • Frank Zak

    The Argentina Example

    The way gold would be utilized today during any hyperinflation scenario, in absence of the U.S. dollar as a medium of exchange, for the purchase of food or anything else is provide by a recent example of what transpired during Argentina’s hyperinflation.

    Entrepreneur’s in Argentina started co-ops where people could come with their items to exchange for other goods or services. How did it work? Here’s an example, not perfect, but the concept is clear:

    Say a dairy farmer needs to buy tools to fix his milking machine, but only has cows (meat) and milk to offer in exchange for the tools. He can’t necessarily offer to the maker of the tools an exact exchange as previously discussed. Also, the toolmaker may have no desire for cows or milk, but want iron and steel to make his tools.

    There has to be a medium of exchange to conduct the transaction. What entrepreneurs did in Argentina was create swap meets that would offer scrip. The dairy farmer would prearrange for someone to purchase his milk or cows (two desirable products), possibly a butcher and grocery stand, and based on that days prices (in scrip), receive the prevailing value (in scrip).

    The dairy farmer could then take that scrip and purchase the tools from the toolmaker. The toolmaker could then go to the commodity producer of iron and steel and pay them in scrip or whatever they took as payment (which may even be gold coins).

    This Will Not Work for Everyone

    Of course, if someone produced goods that no one else wanted, then they wouldn’t be able to do any business with anyone else and would have to figure out what they could produce that others wanted.

    How Gold Would Be Utilized

    Someone with gold coins could exchange them for scrip to make purchases. If they had gold coins that are presently internationally recognized (American Eagle, Canadian Maple Leaf, etc.), it would be easier, but if they only had gold bars, there could be an assayer available to conduct the tests necessary. I imagine there would even be a “scrip for gold” stand somewhere.

    The reason gold would be accepted for scrip is simply because of perception and historical relevance. Gold is the fall back when governments get greedy. It is nature’s money dating back to Biblical times.

    Taken from a website


  • Frank Zak

    Food never became a medium of exchange. This simply never happened. This I want to clarify because if not people may be lead to believe that it could be a possible scenario. At least during the economic collapse that took place in Argentina I can assure you that food never replaced currency. The closest to that was coupons used in some of the various barter clubs, Clubs del Trueque, which did become popular but never did it replace the local defaulted peso, even less, a much sought after shiny US dollar bill. Even gold, which became sought after for selling in some of the “We buy Gold” stores that sprouted everywhere within days, even then it didn’t become an alternative currency used by people.

    People did accept the local currency, the peso, but they would do so at whatever exchange rate it had that day with the US dollar, so within days the peso had devaluated to one third of its value. Still, in spite of that, if you have the cash and enough of it, you bought as much food, gas, or any other goods and service as you wanted.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>