By SD Contributor Rob Kirby:
When sovereign gold is lent / leased – this is done through A BULLION BANK [like Goldman Sachs] whereby, physical bullion is sold into the market to raise cash balances which are then reinvested.
LTCM inadvertently collapsed when they took a highly leveraged position in sovereign Russian bonds and Russia defaulted. If a public ‘work-out’ of LTCM would have ensued – the true state of sovereign Italian finances, as well as the criminal actions of Goldman ‘Hannibal Lecter’ Sachs would have been on public display for the whole world to see – and the Euro would very likely have been still-borne.
For his part in this CRIMINAL FIASCO – Super Mario Draghi was rewarded by being made Vice Chairman of Goldman Sachs International in 2002 and later, in 2011 was appointed president of the European Central Bank [ECB] which on December 13, 2012, was granted exclusive regulatory power over ALL EUROPEAN BANKS: [Read more...]