Post
Topic
Board Politics & Society
Re: no, you may not have your gold back
by
TTBit
on 16/08/2014, 10:46:35 UTC

Gold is fungible. The Federal reserve and German central bank can make a sweetheart deal for $30B in USD rather than the 670 tonnes of gold. With this money, Germany purchases gold from other sources (locally). Once complete, Germany announces a successful swap.

This way, the Federal reserve can continue to lease out over 100% of their reserves. It works every time until it doesn't.