[billybudd]

Did you read the article? It mentioned nothing about gold being borrowed from the Treasury. The trading described here was between two private companies and it seems mundane, hardly the conspiracy it's made out to be. Think about it - virtually the same thing happens when you invest in stocks. You borrow dollars (margin), you sell the dollars in exchange for stock. The stock goes up in value, and you buy back more dollars than you had before. Then you sell the dollars again for stock and repeat ad infinitum. Every time you buy stock, you are putting downward pressure on the value of the dollar, relative to that of stocks. That's why Greenspan was always paranoid about inflation during the bull market of the late '90s. Now the worry is deflation.
Your real target should be the government, because, through the Fed, it distorts markets by setting artificial and arbitrary rates. This is real distortion, unlike the Barrick-JPM trading, because the Fed is not bound by market constraints, but backed by government force.
If the government started selling cars to force down prices, I'd be happy that prices were going down, but unhappy that the government was taking my money to do it.

[larrysav]

Did you read the article? It mentioned nothing about gold being borrowed from the Treasury.

Did you read the right article? Where do you think bullion banks get their bullion? They either own it or borrow it. Sometimes they borrow from central banks. The Fed has consistently denied leasing U.S. gold. The only question is whether you believe Rubin and O'Neill.

Read this article for an explanation of gold leases.

http://www.thestreet.com/_yahoo/markets/rebeccabyrne/10059330.html