Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: OldNavyVet

Interesting. Explain how that happens.


12 posted on 05/21/2013 10:43:56 AM PDT by X-spurt (Republic of Texas, Come and Take It!)
[ Post Reply | Private Reply | To 11 | View Replies ]


To: X-spurt
Futures markets ... http://en.wikipedia.org/wiki/Futures_exchange

Markets have both buyers and sellers. Farmers growing corn or mining companies producing gold can sell their product NOW, before harvest time, and deliver that product when the settlement date arrives. Buyers wanting corn (Cereal producers) or gold can buy the product NOW, at today's price, and take delivery as of the settlement date. Selling Speculators, such as our government selling gold they don't have, must REVERSE their NOW action and buy contracts back (at whatever price it is at the time) on or before the settlement date.

I suspect that governments printing fiat money can get away with losses ... for a while.

13 posted on 05/21/2013 12:31:22 PM PDT by OldNavyVet
[ Post Reply | Private Reply | To 12 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson