http://harveyorgan.blogspot.com/2012/03/hiding-of-european-debthungary-will.html
I brought this Jim Sinclair interview with KingWorld News to you on Thursday. It is very important.
Sinclair believes that the reason for the Germans and the Swiss asking "where is their gold?" is that they suspect that the USA is selling it without their permission. There are two major foreign depositories in the world, the Federal Reserve Bank of NY, and the Bank of England. The gold at the FRBNY is earmarked gold and cannot be used, sold, leased etc. Storage fees and insurance costs are borne by the owner-country.
It is one thing if the USA sold USA gold (at Fort Knox) without congressional approval. It is another to steal other nations gold without their permission. Wars are generally fought on this one!!
I urge you to listen to the tape!!
(courtesy KingWorld News/GATA/Jim Sinclair):
Sinclair - Is the Fed Selling Europe’s Gold During Interventions
Today legendary trader and investor Jim Sinclair told King World News that a number of European countries are beginning to ask themselves where the gold is coming from which is being used for interventions in the gold market. Sinclair also said some European countries are beginning to think it’s their gold, stored by the US Fed, which is being used for these interventions. But first, here is what Sinclair had to say about the recent plunge in gold: "Eric, this has been going on since $248 in gold. Any idea or concern that this kind of intervention is going to cause the gold bull market to cease or shorten or even contain where it will potentially go is simply wrong."Jim Sinclair continues:
"Every time you intervene in any market or any time you intervene economically, it’s the same as using a controlled drug. The first application gives you the best high you’ll ever have. After that you have to do more and more just to near duplicate what you expected.
The selling down of the gold, what this means now is time....
Continue reading the Jim Sinclair interview below...
"If in fact they can’t bring the market under the $1,600 level, then the demand here is beyond the willingness for intervention. That means that if the demand is greater than the supply, the price is going to rise.
If gold does go through $1,764 and stabilizes there, you are beginning an unwind in terms of gold cooperating with the management of perspective economics (MOPE). (Central planners) would want gold to be very soft at a time when a credit event takes place in Greece, that very few of the participants and even bondholders knows yet exactly what happened."…
Eric KingKingWorldNews.com
I brought this Jim Sinclair interview with KingWorld News to you on Thursday. It is very important.
Sinclair believes that the reason for the Germans and the Swiss asking "where is their gold?" is that they suspect that the USA is selling it without their permission. There are two major foreign depositories in the world, the Federal Reserve Bank of NY, and the Bank of England. The gold at the FRBNY is earmarked gold and cannot be used, sold, leased etc. Storage fees and insurance costs are borne by the owner-country.
It is one thing if the USA sold USA gold (at Fort Knox) without congressional approval. It is another to steal other nations gold without their permission. Wars are generally fought on this one!!
I urge you to listen to the tape!!
(courtesy KingWorld News/GATA/Jim Sinclair):
Sinclair - Is the Fed Selling Europe’s Gold During Interventions
Today legendary trader and investor Jim Sinclair told King World News that a number of European countries are beginning to ask themselves where the gold is coming from which is being used for interventions in the gold market. Sinclair also said some European countries are beginning to think it’s their gold, stored by the US Fed, which is being used for these interventions. But first, here is what Sinclair had to say about the recent plunge in gold: "Eric, this has been going on since $248 in gold. Any idea or concern that this kind of intervention is going to cause the gold bull market to cease or shorten or even contain where it will potentially go is simply wrong."Jim Sinclair continues:
"Every time you intervene in any market or any time you intervene economically, it’s the same as using a controlled drug. The first application gives you the best high you’ll ever have. After that you have to do more and more just to near duplicate what you expected.
The selling down of the gold, what this means now is time....
Continue reading the Jim Sinclair interview below...
"If in fact they can’t bring the market under the $1,600 level, then the demand here is beyond the willingness for intervention. That means that if the demand is greater than the supply, the price is going to rise.
If gold does go through $1,764 and stabilizes there, you are beginning an unwind in terms of gold cooperating with the management of perspective economics (MOPE). (Central planners) would want gold to be very soft at a time when a credit event takes place in Greece, that very few of the participants and even bondholders knows yet exactly what happened."…
Eric KingKingWorldNews.com
and.....
And finally this physical commentary from Jack Farchy of the London's Financial times
who comments that the BIS acting on behalf of central banks are buying gold as they know that gold has no liabilities and they are ditching their fiat for this important financial reserve:
What Difference Does It Make
Now the world is a funny place these days. We have somehow come to the conclusion that since Europe can print all of the money they want, as in the LTRO scheme, that whether the combined ECB/EU loans are $3 trillion or $10 Trillion that it will make no difference as they can print all of the money they will ever need. They can print money, they can buoy their currency through central bank purchases, they can accept collateral that has the value of a nugget of fool’s gold so that they can rig the game to their heart’s delight and everything will be just fine. Now let me assure you, after almost thirty-nine years of engaging in the Great Game let me assure you, that this type of momentary nonsense will not prevail past the briefest of times and that the truth always emerges in due course. In the same Eurostat report, by the way, of 2/29/12 we also find that Belgium’s sovereign guarantee of “other debt” is 21.3% of their GDP, for Italy it is 3.6% of their GDP and for Portugal the number is 7.7% of their GDP. This does not include any guarantees of bank debt which would also have to be added in to the totals to reflect some sort of accurate fiscal picture. Consequently, as investors, we are not in some murky place but smack dab in a carefully engineered plan of outright Fraud where we are given manipulated and inaccurate numbers in the hopes that we will fund based upon them. We are being played as suckers as I state once again that I would not put one red cent in any of the European sovereigns or their banks as none of their data is real; only a consistent illusion created for fools.
“A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. With consistency a great soul has simply nothing to do.”
who comments that the BIS acting on behalf of central banks are buying gold as they know that gold has no liabilities and they are ditching their fiat for this important financial reserve:
March 16, 2012 6:51 pmCentral banks pounce on falling goldBy Jack FarchyFinancial TimesA sharp fall in gold prices has triggered large purchases of bullion by central banks in recent weeks, according to several traders with knowledge of the transactions.The buying activity highlights the trend among central banks in emerging economies to buy gold, even as some western investors are losing patience with the metal. Gold prices have dropped 13.8 per cent from a nominal record high of $1,920 a troy ounce reached in September, and on Friday were trading at $1,655.60.The Bank for International Settlements, which acts on behalf of central banks, has been buying significant quantities of gold on the international market amid falling prices, traders said.According to several estimates, the BIS bought 4-6 tonnes of gold, worth roughly $250m-$300m at current prices, in the over-the-counter physical market last week, with purchases particularly strong at the end of the week. The total purchases over the past three or four weeks were likely to be as much as double that, the traders added.
In a note to clients this week, Credit Suisse referred to “aggressive central bank buying seen last Friday”.The BIS declined to comment.Central banks are one of the most important drivers of the gold market, holding one-sixth of all the gold ever mined in their reserves, but they disclose few details about their activities.As a group, they made their largest purchases of gold in more than four decades last year, led by emerging economies such as Mexico, Russia and South Korea intent on diversifying their dollar-heavy foreign exchange reserves. The World Gold Council has also pointed to the possibility of significant unreported purchases by China at the end of last year.At the same time, European central banks have all but halted a run of large sales.“Central banks have definitely been looking at gold as an asset class much more closely ever since European central banks stopped selling,” a senior gold banker said. “There has been a huge interest.”While some countries, such as Russia, China or the Philippines, have traditionally accumulated gold produced by their domestic mining industry, others use the BIS as an agent to carry out purchases and sales on their behalf, preserving anonymity.The central bank buying comes as gold prices have slid in the past three weeks as strong economic data from the US has lowered investors’ expectations of quantitative easing by the Federal Reserve and made other investments, such as equities, appear more attractive.Gold prices this week fell to their lowest since mid-January after the Fed struck an optimistic tone on the US economic recovery. “It’s clear that the market trend right now is an unwinding of safe-haven exposures, like gold, and a preference for growth assets,” said Edel Tully, precious metals strategist at UBS.
Buying from large physical consumers of gold such as China and India remains sparse, despite the fall in prices. India on Friday announced it would double import tariffs for gold, a move analysts said could damp demand.“Asian physical demand remains lacklustre,” Credit Suisse said, arguing that gold prices could fall below $1,600. “Gold has now slipped back towards the middle of its long-term trend and has room to drop further.”Copyright The Financial Times Limited 2012.
and a reprise of Mark Grant's essential article of the week.....
Now for the big "paper" or "debt" stories which will shape the physical price of gold and silver.
This first story is an extremely important paper presented by Mark Grant. Here he talks about bank debts which are not included in official European government debt figures as the authorities considers these contingent liabilities. They must be added to get a real picture of what is going on in that nation. He then delves into Spain as he shows that just the bank debts guaranteed by sovereign Spain amounts of 79 billion euros. The individual states of Spain have guaranteed 140 billion euros of debt plus additional municipal debt plus other state run entities adds a further 55 billion euros of debt. Total debt of Spain is thus almost 101 billion euros with a GDP of 107.3 trillion of GDP far greater than the 64% of GDP that they have been showing.
All governments are hiding the bank debts including Greece, Italy Belgium etc.
I have presented Mark Grant's paper with the official releases of Bloomberg and AFP on Spain's results.
I have changed some of Mark's numbers as he erred on the total admitted Spanish sovereign debt at 732 billion usa DOLLARS instead of the correct 735 billion EUROS (see AFP). I adjusted all the numbers to conform properly with the data;
(courtesy Mark Grant/Bloomberg/AFP)
If we just take the newest figures for Spain, which were released this morning, we find an admitted sovereign debt of 735Bn Euros and a touted debt to GDP ratio of 68.5% which is up 10.7% from last year. Then, according to Phoenix Capital Research, the private sector debt is 227% of GDP while the Spanish banking system is levered 19 to 1. Danske bank points out this morning that the drop in home prices for Spain was -4.2% last quarter which marks the biggest drop ever and they note a record high vacancy rate of 24.3% while further stating that the fall in Real Estate prices is so steep that it is equivalent to a 10% loss in GDP. In a report issued on 2/29/12 and apparently ignored by everyone including the ratings agencies, Eurostat reports that Spain has total sovereign guarantees of “other debt” which is 7.5% of their total GDP which would total around another $72.2 billion in uncounted debt. Then if we consider the “known” debt for Spain, only someone in La Mancha may know the “real” answers, we find:
Admitted Sovereign Debt * $960 Billion (735 billion euros)
Admitted Regional Debt $183 Billion (140 billion euros)
Admitted Bank Guaranteed Debt $103 Billion (79 billion euros)
Admitted Other Sovereign Guaranteed Debt $ 72 Billion (55 billion euros)
Total Admitted Debt $1.32 Trillion* or 100.9 billion euros
A More Accurate Debt to GDP Ratio 94.0%GDP of Spain: 1.073 trillion euros.
* (I changed the data to reflect correct data in euros and dollars..Harvey)This first story is an extremely important paper presented by Mark Grant. Here he talks about bank debts which are not included in official European government debt figures as the authorities considers these contingent liabilities. They must be added to get a real picture of what is going on in that nation. He then delves into Spain as he shows that just the bank debts guaranteed by sovereign Spain amounts of 79 billion euros. The individual states of Spain have guaranteed 140 billion euros of debt plus additional municipal debt plus other state run entities adds a further 55 billion euros of debt. Total debt of Spain is thus almost 101 billion euros with a GDP of 107.3 trillion of GDP far greater than the 64% of GDP that they have been showing.
All governments are hiding the bank debts including Greece, Italy Belgium etc.
I have presented Mark Grant's paper with the official releases of Bloomberg and AFP on Spain's results.
I have changed some of Mark's numbers as he erred on the total admitted Spanish sovereign debt at 732 billion usa DOLLARS instead of the correct 735 billion EUROS (see AFP). I adjusted all the numbers to conform properly with the data;
(courtesy Mark Grant/Bloomberg/AFP)
The Fool's Game: Unravelling Europe's Epic Ponzi Pyramid Of Lies
Submitted by Tyler Durden on 03/16/2012 09:00 -0400
The Fool's Game
Bank Bonds Guaranteed by their Sovereign Nations
Spain: 79.039 billion euros ($103 billion)
Italy: 78.032 billion euros ($102 billion)
Portugal: 18.225 billion euros ($ 24 billion)
Ireland: 27.707 billion euros ($ 36 billion)
Greece: 67.244 billion euros ($ 88 billion)
TOTAL 270.247 billion euros ($353 billion)
The Fool's Game
Bank Bonds Guaranteed by their Sovereign Nations
Spain: 79.039 billion euros ($103 billion)
Italy: 78.032 billion euros ($102 billion)
Portugal: 18.225 billion euros ($ 24 billion)
Ireland: 27.707 billion euros ($ 36 billion)
Greece: 67.244 billion euros ($ 88 billion)
TOTAL 270.247 billion euros ($353 billion)
“Black markets will always be with us. But they will recede in importance when our public morality is consistent with our private one. The underground is a good measure of the progress and the health of nations. When much is wrong, much needs to be hidden.”Now in the curious world we live in today; this only came out in public as the answer to a question raised in the German Parliament. Some reflection on the nature of these guarantees, that the European Union had decided not to tell us about, causes me to think of them as “Ponzi Bonds.” These are the seeds of a great scheme that has been foisted upon us. Bonds of a feather that have flocked together and arrived with the black swans one quiet Wednesday afternoon. The quoted and much ballyhooed sovereign debt numbers are now known to be no longer accurate and hence the lack of credibility of the debt to GDP data for the European nations. Stated more simply; none of the data that we are given about sovereign debt in the European Union is the truth, none of it. According to Eurostat, as an example, the consolidated Spanish debt raises their debt to GDP by 12.3% as Eurostat also states, and I quote, that guaranteed debt in Europe “DO NOT FORM PART OF GOVERNMENT DEBT, BUT ARE A CONTINGENT LIABILITY.” In other words; not counted and so, my friends, none of the data pushed out by Europe about their sovereign debt or their GDP ratios has one whit of truth resident in the data. Spain
-Eric Schlosser
If we just take the newest figures for Spain, which were released this morning, we find an admitted sovereign debt of 735Bn Euros and a touted debt to GDP ratio of 68.5% which is up 10.7% from last year. Then, according to Phoenix Capital Research, the private sector debt is 227% of GDP while the Spanish banking system is levered 19 to 1. Danske bank points out this morning that the drop in home prices for Spain was -4.2% last quarter which marks the biggest drop ever and they note a record high vacancy rate of 24.3% while further stating that the fall in Real Estate prices is so steep that it is equivalent to a 10% loss in GDP. In a report issued on 2/29/12 and apparently ignored by everyone including the ratings agencies, Eurostat reports that Spain has total sovereign guarantees of “other debt” which is 7.5% of their total GDP which would total around another $72.2 billion in uncounted debt. Then if we consider the “known” debt for Spain, only someone in La Mancha may know the “real” answers, we find:
Admitted Sovereign Debt * $960 Billion (735 billion euros)
Admitted Regional Debt $183 Billion (140 billion euros)
Admitted Bank Guaranteed Debt $103 Billion (79 billion euros)
Admitted Other Sovereign Guaranteed Debt $ 72 Billion (55 billion euros)
Total Admitted Debt $1.32 Trillion* or 100.9 billion euros
A More Accurate Debt to GDP Ratio 94.0%GDP of Spain: 1.073 trillion euros.
What Difference Does It Make
Now the world is a funny place these days. We have somehow come to the conclusion that since Europe can print all of the money they want, as in the LTRO scheme, that whether the combined ECB/EU loans are $3 trillion or $10 Trillion that it will make no difference as they can print all of the money they will ever need. They can print money, they can buoy their currency through central bank purchases, they can accept collateral that has the value of a nugget of fool’s gold so that they can rig the game to their heart’s delight and everything will be just fine. Now let me assure you, after almost thirty-nine years of engaging in the Great Game let me assure you, that this type of momentary nonsense will not prevail past the briefest of times and that the truth always emerges in due course. In the same Eurostat report, by the way, of 2/29/12 we also find that Belgium’s sovereign guarantee of “other debt” is 21.3% of their GDP, for Italy it is 3.6% of their GDP and for Portugal the number is 7.7% of their GDP. This does not include any guarantees of bank debt which would also have to be added in to the totals to reflect some sort of accurate fiscal picture. Consequently, as investors, we are not in some murky place but smack dab in a carefully engineered plan of outright Fraud where we are given manipulated and inaccurate numbers in the hopes that we will fund based upon them. We are being played as suckers as I state once again that I would not put one red cent in any of the European sovereigns or their banks as none of their data is real; only a consistent illusion created for fools.
“A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. With consistency a great soul has simply nothing to do.”
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