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To: sten
my fav is the fed to trying to prop up the dollar by buying gold with newly printed bucks and selling it for a loss going into the open.

How does buying gold and then selling gold prop up the dollar?

88 posted on 12/01/2014 7:17:01 AM PST by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Toddsterpatriot
How does buying gold and then selling gold prop up the dollar?

when gold goes up... the dollar goes down

when they know the dollar is going to take a hit, they buy gold at the end of the day (NY) and dump it the next morning, pre-open, for a major loss (they don't care as it's phoney money they just printed). this helps offset any bad news

they figure a 3-4% swing is normal and if they can push gold down 3% it'll about even out the next day.

89 posted on 12/01/2014 7:39:01 AM PST by sten (fighting tyranny never goes out of style)
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