By Adrian Ash
“If gold is ‘past its day’, what of toxic derivatives and today’s deluge of US Treasury bonds…?”
Just like poor Pip Dickens’ Great Expectations, central banks keep inheriting unwelcome bequests.
Today’s “legacy assets” are toxic derivatives; a decade ago it was gold reserves. Both are proving hard to shrug off, but for very different reasons. Both legacies also come thanks to previous central-bank history; the fossils remain only too livid today.
And 10 years from now, if not sooner, just how welcome will the current central bank must-have become – freshly printed government debt, bought with money that doesn’t exist until the central bank wills it?
Gold Will No Longer Be a Toxic Derivative to Central Banks
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