James Turk: What are banks doing with their depositors' money?

11:06p ET Friday, February 26, 2010

Dear Friend of GATA and Gold:

Credit is tightening in the United States, GoldMoney founder and Free Gold Money Report editor James Turk reports, in large part because bank deposits are being soaked up by federal government borrowing.

Turk writes: "Instead of depositor money being used to stimulate economic activity in the private sector by lending to businesses and consumers, the banks are helping to fund the growing federal deficits. This re-allocation of resources has a negative long-term impact on the economy. Depositor money is not being used for productive purposes like building manufacturing plants and making other investments that will create jobs and grow the economy. It is being spent by the government, which consumes in the present and does not invest for the future."

This will lead to debasement of the dollar, Turk writes, as markets realize that the U.S. government is no more credit-worthy than Greece.

Turk's commentary is headlined "What Are Banks Doing with Their Depositors' Money?" and you can find it at the FGMR Internet site here:

http://www.fgmr.com/what-are-banks-doing-with-their-depositors-money.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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