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Comment: The obvious answer is yes

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The obvious answer is yes

once you realize that certificates which promise the holder a certain denomination of gold or silver are being created and handed out when the amount of precious metal that the certificate is said to be worth is not actually in existence in the issuer's vaults.

One could draw a parallel to banks lending fractional money which they have created but does not physically exist. The only difference is that banks collect interest payments off the loans whereas with the phony certificates, the purpose is to keep it look like gold is available, in order to suppress its price and thus keep the value of the dollar more stable than it would be if people realized the jig is up.

Check out the Gold Anti-Trust Action Committee for more information on the suppression of the price of gold: