Previous Discussion: Freegold Debate Common Venue (Page 2)
Previous Discussion: Freegold Debated by SMRI (Page 1)
- Similarity of FOFOA's group to cults (with religious allegories by Duggo)
- Common desire to see the Freegold thesis thoroughly tested.
- Bron's discussion of Freebanking.
- Whether or not physical and paper will ever decouple.
We'll start page 3 by highlighting Bron's comment from page 2:
"In 2008 I remember FOFOA getting excited about the shortages and whatnot, feeling it may be "it". I disagreed as I wasn't seeing any stress it the wholesale markets.I think this is crucial to the discussion - namely that Bullion Banks may operate in a slightly different fashion to what most of us are familiar with, and that some of these mechanics may be incompatible with external observations of silver and gold. I certainly understand this from a bar list perspective - where my own analysis of the core data has shown me lots of things that had never been previously considered, with the conclusion there is a whole lot more going on under the hood - almost like its own ecosystem of dependencies and relationships. This is really the core of the issue - whether the description of the gold market offered by Another and FOA were detailed enough to withstand rigorous testing, and the questions about whether anything has changed which may alter the picture slightly (an example of this is that GLD was not created at the time when Another and FOA were writing).
Seems like the same again in 2013, and I have the same view again. Paper will only disconnect if the large holders/traders of unallocated refuse to do so. I don't see signs of that happening, at least from where I sit, which is admittedly not the entire gold market.
My view is bullion banking runs like a freebanking system and thus likely to be more robust than many think, and thus it will take a few more "cycles" of hope then fear to cause a real run.
Relying on the hype/ exaggeration/ misinformation of newsletter writers and gold bar/coin sellers for one's signals of whether the system is unravelling is not wise."
-- Bron Suchecki
Bullion Bars Project