German Central Bank admits that credit is created out of thin air

Posted: March 21, 2010 in Uncategorized

Does this give you confidence in fiat currencies and financial systems?  If you don’t have enough credit no problem banks will create credit.  This is bullish for gold.  Ulitimately when people loose confidence in fiat currencies and financial systems they turn to gold.  You can’t create gold out of thin air, at least holders of physical gold.  It is debatable how much bullion can be found in ETF’s like the GLD, likely not enough to cover it’s market cap.

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