Giving the Game Away: Central Bankers are Human Beings Too

Abstract

In order for the cooperation between bullion banks and central banks to work, the central banks must guarantee to deliver enough gold on demand in the event of a rising price. A quote by Alan Greenspan, then chairman of the Federal Reserve, is telling in this context. He said, in 1998: ‘Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.’26