When someone goes to a bank and deposits money, if you look at the small print, you don’t actually own that money, you’ve simply loaned it to the bank. The banks will then turn right around and lend ten to one or whatever leverage they determine to use with your cash. Well, when there is a run on the banks, as there has been in Europe, the money is printed by governments and given to the customers to calm things down.
The underlying problem here is that when the run on physical gold and silver begins, how will the banks print the gold and silver? It’s not possible. So something is brewing here. There’s no smoke without a fire. The reason this information is beginning to be discussed more openly is because of legal reasons. They need to be able to say, ‘We disclosed to people that the gold and silver wasn’t there.’
Yes, this will include a scandal at the LBMA in those unallocated accounts. The paper leverage in the LBMA system is off the charts. Investors believe their gold and silver is sitting in those unallocated accounts, and they will be in shock when they find out it isn’t there.
We are talking here about a run on the bullion bank. As this unfolds there will be a failure. These people will only receive the fixed price before trading is halted. This will not be called a default. Then there will be a massive gap in the price of gold and silver. But the bullion banks will not be allowed to go bankrupt during this process. There is a ring of counterparties here. If one of them fails, the whole system can fail. So they will not be allowed to fail.”
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