Article Image
News Link • Economy - International

Deutsche Bank's Modest Proposal To Central Banks: "Purchase The Gold Held By Private Househ

• http://www.lewrockwell.com, By Tyler Durden

Here it is, without commentary and the key section highlighted:

From Deutsche bank Behavioral Finance: Daily Metals Outlook

Although gold market operators are currently pre-occupied with the prospect of the SNB finding itself obliged by referendum to buy large quantities of bullion, another central bank raised the same possibility yesterday: the ECB. As odd as it sounds, given the contentious internal debate this year over asset purchases in general, ECB board member, YvesMersch, reminded journalists that the Bank could in theory buy any asset within a QE program. This could mean government debt, equities, ETFs, or even gold. Indeed, within an effective asset purchase program it matters not so much what the asset is, than who the seller is. Given that the eurozone banking system still appears to be a bottleneck in the monetary transmission mechanism, there might be some wisdom in bypassing it. Banks do not hold gold. However, this 'theoretical' possibility would quickly run into practical constraints, not least the volume limitations and the problem of having to pick winners and losers.  

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Attorney For Freedom