India and Vietnam: Taking the Glitter out of Gold … When uncertainty reigns, investors all over the world turn to gold as a safe haven. But some countries are starting to take issue with their residents’ preference for storing wealth in gold bars, rather than bank accounts. Large gold imports can throw of a country’s current account balance – the difference between what a country earns and what it spends on foreign trade. Widespread investments in physical gold also mean that large pots of wealth sit idle, instead of being put to work in the broader economy. And in countries where gold is a popular investment, those financial institutions which carry large gold deposits, lend cash against gold or offer interest-bearing gold deposit accounts, can pose a risk to the financial system if commodity prices suddenly shift. – Thefinancialist.com
Dominant Social Theme: The nation is more important than the individual, at least when it comes to account balances.
Free-Market Analysis: The Financialist is published by the vast securities firm of Credit Suisse, and thus we are not surprised to find this sentiment being enunciated by officials in charge of this publication.
It is, of course, a kind of elite dominant social theme. The idea is that the state itself is the source of all authority – and when there is a choice between state power and the rights of the individual, the state reigns supreme. This is a kind of European meme, as well, for Europe, more than the US, is accustomed to this sort of reasoning.
It is a shame, nonetheless, to see it coming from Credit Suisse based in Switzerland. Switzerland is a republic, where power still flows from the citizen up to the leadership rather than vice versa. It is a direct democracy but with republican features and not everyone can vote on all issues – all of the time.
Read More: http://www.thedailybell.com/28736/Credit-Suisse-Says-Governments-Are-Discouraging-Gold-Holdings–And-What-This-Analysis-Misses