21-07-2009, 04:58 PM
Chris Bowen Wrote:thanks for that reply - some of which I think I followed !
Are we basically saying that banks are operating in the gold market in a not dis-similar way to fractional reserve banking where they don't actually hold enough physical "stuff" to repay on demand all those who could in theory require them to do so.
I'm on a quick visit and haven't had the opportunity to read much posted on the forum thus far.
However, for Chris, it might be worth noting that the entire edifice of fractional reserve banking derived from the gold market and the realization that paper "receipts" instead of physical delivery suited most purchasers (it was the cheaper option). This very quickly resulted in a the gold dealers/banks realizing they could sell more gold than they owned and simply juggle physical with paper delivery.
Hey Peter, you're a brave man dealing in the gold paper market! Me, I'd only ever now buy physical and stash it under the bed in case that really rainy day ever arrived. I'm so old fashioned in these things that if I were ever flushed with temporary madness and decided to buy stock or shares I'd still want a certificate proving I actually owned something. The thought an entry on a computer system being my sole proof of ownership fills me with dread -- especially as the financial and commodities markets are so overwhelmingly staffed with crooks and organized criminals these days.
The shadow is a moral problem that challenges the whole ego-personality, for no one can become conscious of the shadow without considerable moral effort. To become conscious of it involves recognizing the dark aspects of the personality as present and real. This act is the essential condition for any kind of self-knowledge.
Carl Jung - Aion (1951). CW 9, Part II: P.14