Thursday, November 22, 2012

Austrian Parliament hears 80 percent of its gold or 224 metric tons in London - here's the thing , if you believe what Jim Willie has written , London and New York have stolen the gold placed there. So how does Germany , the Netherlands , Austria and the other saps who feverishly hope their gold is still there ( but are denied access or audit or even the ability to view THEIR gold ) respond once their fears of stolen gold become reality ? Casey Gold and Silver Report - November 21

http://www.gata.org/node/11957

( When gold is leased out as Austria has done , it will not be returned. Austria - your gold is gone. )


Clamor about gold reserves prompts leasing disclosure by Austrian central bank

Submitted by cpowell on Fri, 2012-11-23 16:01. Section: 
11:05a ET Friday, November 23, 2012
Dear Friend of GATA and Gold:
Germany's clamor and agitation about the integrity of national gold reserves are spreading into Austria, where two national newspapers headquartered in Vienna, Die Presse and Der Standard, this week raised questions about Austria's national gold and even prompted a response from the country's central bank, the Oesterreichische Nationalbank (OeNB).
Die Presse's report, in German, is here:
Der Standard's, also in German, is here:
Der Standard also has published what appears to be a report on the issue by the Austria Press Agency, the country's independent press association, which GATA consultant Dimitri Speck has translated into English and is appended. The APA report is notable for its inducing the OeNB to disclose details about its gold leasing, supposedly now down to 16 percent of the Austrian gold reserve, and for recognizing that a fractional-reserve gold banking system may jeopardize the return of leased gold.
Thus there seems to be increasing understanding internationally of GATA's complaint about the Western central bank gold price suppression scheme.
Yesterday's report from the English-language Austrian Times in Vienna, which appears to have drawn its content from the two newspaper reports cited above and which was dispatched to you --
-- quoted the Austrian National Bank as claiming to have earned E300 million from leasing its gold over the last decade. This has seemed extraordinarily high to GATA's brain trust and may be an indication that the bank was leasing everything it had and maybe even gold it didn't have.
In any case your secretary/treasurer today corresponded in some detail with a reporter for the Austria Press Agency who seems interested in pursuing a story about the country's gold reserves. Let's pray for his career and even for his safety.
Sorry for not being clearer and more detailed about all this. While our German friends lately have been performing the most heroic service on behalf of free and transparent markets and limited, accountable government, we are always terribly intimidated by the German language, as was Mark Twain, who wrote that "it ought to be gently and reverently set aside among the dead languages, for only the dead have time to learn it."
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
16 Percent of National Gold Leased Out
From Der Standard
Vienna, Austria
Thursday, November 22, 2012
According to a newspaper report at the beginning of the last decade up to 80 percent [of Austria's gold reserves] was leased to the bullion banks.
The Oesterreichische Nationalbank (OeNB) has broken a taboo and reported on Thursday that currently only 16 percent of its gold holdings are leased. A spokesman for the central bank confirmed a report of the daily newspaper Die Presse.
According to the newspaper report at the beginning of the last decade up to 80 percent was leased to the bullion banks.
When Ewald Nowotny replaced [central bank] Governor Klaus Liebscher in 2008, probably still about 50 percent of the national gold was leased out.
The question is important insofar as several experts consider the gold market as a fractional-reserve system, in which up to 100 kilograms of gold claims are traded for 1 kilo of the physical precious metal. Should an event similar to a "bank run" take place, the return of leased gold would be at risk. -- APA, November 22, 2012.











http://www.caseyresearch.com/gsd/edition/bundesbank-wont-explain-sale-gold-even-if-its-only-finance-ministry-coins


Bundesbank Won't Explain Sale of Gold Even if it's Only to Finance Ministry for Coins

Nov
22
"I really don't know how things are going to play out between now and year end...and neither does anyone else."


¤ YESTERDAY IN GOLD AND SILVER

The spike in the dollar index produced a corresponding drop in the gold price in mid-day trading in the Far East yesterday.  The low price tick of the day came somewhere just below the $1,720 spot price mark at the beginning of the lunch hour in Hong Kong.
From there, the gold price began to rally, but it was obvious from the price pattern that there was a not-for-profit seller lurking about...especially during the Comex trading session in New York...as every rally attempt ran into resistance.  The New York low came at London p.m. gold fix, which was 10:00 a.m. Eastern time.
The high price tick came at 1:00 p.m...and from that point, gold got sold off immediately going into the Comex close thirty minutes later.  After that, the gold price traded sideways for the rest of the electronic session.
Gold closed at $1,729.20 spot...up $1.10 on the day.  Gross volume was pretty heavy, as there were lots of roll-overs out the December contract.  Net volume was very light at around 88,000 contracts.
The silver price followed the same downward price pattern in Far East trading that gold did...and the low of the day came at around 1:00 p.m. Hong Kong time.  Silver then spent the rest of Wednesday trying to claw its way back above its Tuesday closing price...finally making during the New York lunch hour.
Silver's high tick [$33.53 spot] came at the same time as gold's...a few minutes after 1:00 p.m. Eastern...and from there the metal traded sideways into the 5:15 p.m. close of electronic trading.
Silver closed at $33.39 spot...up 20 cents on the day.  Gross volume was big because of switching volume...but the net trading volume was only around 22,500 contracts.
As you can see from the 3-day dollar index chart below, the index blasted skyward about 11:25 a.m. Hong Kong time yesterday morning...and within forty-five minutes, the rally had topped out.  The price hung in there until around 3:20 p.m. in Hong Kong before rolling over, hitting its New York low at the London p.m. gold fix...10:00 a.m. Eastern, 3:00 p.m. GMT.  From there the index traded sideways until just about the close, when it hit another air pocket, dropping about 14 basis points in just a few minutes.
When all was said and done, the dollar index closed at 80.80...down 20 basis points from Tuesday's close, with almost all of the 'loses' coming in the last few minutes of trading.
Here's the Wednesday chart on its own.
Not surprisingly, the gold shares sold off a bit at the open, hitting their low of the day at gold's low...minutes after 10:00 a.m. at the London p.m. gold fix.  From there they rallied about two percent by shortly before lunch in New York...and then more or less traded sideways into the close of the equity markets at 4:00 p.m. Eastern.  The HUI finished up 1.47%...and the usual chart from ino.com is M.I.A., so here is a little dinky one that I stole from Kitco.
The silver stocks performed much better yesterday than they did on Tuesday...and Nick Laird's Silver Sentiment Index closed up 1.37%.
The CME's Daily Delivery Report showed that 21 gold contracts were posted for delivery on Monday, the 26th.
For the first time in quite a while, there were no reported changes in either GLD or SLV.
The U.S. Mint had a decent sales report.  They sold 4,000 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and 225,500 silver eagles.
Over at the Comex-approved depositories on Tuesday, they did not receive a single ounce of silver...but they did report shipping 927,344 troy ounces out the door.  Almost all of it came out of Scotia Mocatta.  The link to that activity is here.
Here's a chart that Australian reader Wesley Legrand sent our way yesterday.  It's from the good folks over at www.chartoftheday.com.  Here are the comments that came with it...
"For some perspective on the long-term performance of the stock market, today's chart presents the Dow priced in another global currency -- gold (i.e. the Dow/gold ratio). For example, it currently takes less than a mere 7.5 ounces of gold to 'buy the Dow' which is considerably less than the 44.8 ounces it took back in 1999. Priced in gold, the Dow has been in a massive 12-year bear market. The current downtrend channel is the third of this bear market. While this latest channel is the least steep of the three, the Dow priced in gold has just failed to punch through resistance for the fourth time."


selected news items .....


Even Muni Bonds May Be Targeted in 'Fiscal Cliff' Talks

Politicians working to avert the "Fiscal Cliff" may take away some of the advantage of tax-free municipal bonds, dealing a blow to investors as well as local governments.
While Congress isn't yet expected to try to change muni bonds' tax-free status, industry experts think lawmakers could take a first step by limiting how much income investors could deduct under the popular tax break, which has been around since 1913.
Limiting the tax deduction could make muni bonds less popular, resulting in higher borrowing costs for state and local governments, particularly those in the weakest financial positions.
Our first story of the day is this CNBC piece that was picked up by thefinance.yahoo.com Internet site yesterday...and I thank Texas reader Roger DeReu for sending it our way.  The link is here.


Billionaires Dumping Stocks, Economist Knows Why

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks...and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.
This item showed up on the moneynews.com Internet site on Tuesday...and I thank reader Glenn Jeffs for bringing it to our attention.  It's worth skimming...and the link is here.


Give Thanks for Low Food Prices as They’ll Rise Next Year

Americans may want to freeze the leftovers from Thanksgiving dinner, as retail food prices are expected to rise next year, sparked by the country’s worst drought in more than half a century.
The dry conditions sent corn futures to a record and wheat prices to the highest in four years. They had less of an effect on food costs than expected earlier this year because slowing economies and oil demand have offset price pressures, economists say. Thanksgiving dinner will cost only 0.6 percent more than in 2011, the American Farm Bureau Federation said, with a 3.1 percent jump in turkey prices leading the way.
Next year, retail poultry prices are projected to increase as much as 4 percent, beef by 5 percent and dairy products by 4.5 percent because of higher feed prices and as herds thinned by the drought tighten supplies, the U.S. Department of Agriculture said. The drought’s effects on food prices may linger as late as 2016, said Christopher Hurt, a livestock economist at Purdue University in West Lafayette, Indiana.
This story was posted on the Bloomberg website late on Tuesday evening Mountain time...and I thank Elliot Simon for his second offering in a row.  The link is here.


Doug Casey on the America That Was - Now the United (Police) State of America

"The U.S. Constitution was essentially a coup; the delegates to what we now call the Constitutional Convention were not empowered to replace the existing government - only to improve upon the Articles of Confederation between the then-independent states. The framers of the Constitution drafted it with the notion of a national government already in place, but calmed fears of loss of state sovereignty by calling the new government the "United States of America" - a verbal sleight of hand that worked for over half a century. Then the southern states decided to exercise what these words imply; their right to leave the union. While slavery was and is a wholesale criminal activity I object to in every way possible, the southern states did have the right to secede, both legally and ethically. But the question was settled by force, not reason, and the wrong side won."
As the years go by, Doug Casey is becoming even more strident...and even more politically incorrect [if that's possible].  He is literally screaming at all Americans to leave the U.S. far behind.  I hope all my American readers at least have gold and silver stored safely abroad someplace...and a current passport so they can leave if they have to.
This is the latest edition of Conversations with Casey...and it's a must ready for sure.  As usual, Louis James is there to goad Doug along...not that it takes much these days.  The link is here.


Hyperinflation and Complete Collapse – Nick Barisheff

Asset manager Nick Barisheff says, “There’s never been a fiat currency in history that didn’t end in hyperinflation and complete collapse.”  Barisheff thinks that Treasury Secretary Tim Geithner’s most recent call to have an “unlimited debt ceiling” for the U.S. was “just telling the truth.”  That’s essentially what we have now with “open-ended” money printing by the Fed.  Barisheff adds, “All it’s doing is postponing a problem...it makes it bigger and eventually it blows up.”  Forget about remedies for the economy, it’s too late.  Barisheff says, “We’ve passed the point of this getting fixed.”
Barisheff thinks if the Fed’s gold holdings are ever audited, there will be a “gigantic short-covering rally...multiple bankruptcies...and a massive loss of confidence” in the dollar because much of the gold is gone or leased out.  Barisheff thinks the gold price could be “easily double” right now.  That’s because Barisheff believes, “What’s kept the price down is the artificial leased gold going onto the markets.”
Well, Nick's only partly right, as it's the massive Comex short positions by JPMorgan et al that really control the price at the moment...and I note that he's 'borrowed' a lot of work from James Turk and GATA without attribution...but what else is new.
Greg Hunter of usawatchdog.com goes one-on-one with Nick Barisheff, CEO of the $650 million Bullion Management Group...and the link to the 17-minute video interview is here.  It's certainly worth watching.


Andrew Maguire: Price suppression mechanics of GLD and SLV

In commentary posted at Turd Ferguson's Internet site, the TF Metals Report, London monetary metals trader and silver market rigging whistleblower Andrew Maguire explains how the gold and silver exchange-traded funds, GLD and SLV, are used by the major bullion banks for price suppression.
Well, dear reader, except for the first couple of paragraphs...and the associated charts...which aren't part of Andrew's commentary, I haven't a clue as to what he's talking about.  I understand the first couple of paragraphs, but after that it's all Greek to me.
I'm not saying he's wrong, it's just that I don't understand the mechanics, even if it is true. One thing worth noting is that no other ETF/bullion fund on Planet Earth can be talked about in these terms.  As you know, I've always been deeply suspicious of both GLD and SLV...and the two custodians that hold the metal...JPMorgan in silver...and HSBC USA in gold.  There are other choices for owning precious metals in fund form...and for precisely that reason, I don't [and never would] own either of these two ETFs.
I found this Andrew Maquire commentary in a GATA release yesterday.  It's posted on the tfmetalsreport.com Internet site...and the link is here.


Bundesbank won't explain sale of gold even if it's only to Finance Ministry for coins

Brazil raised its gold reserves for a second month in October to the highest level in more than 11 years as emerging nations from Kazakhstan to Russia boosted holdings by more than 40 metric tons.
Brazil's holdings expanded 17.2 tons last month to 52.5 tons, the most since January 2001, according to data on the International Monetary Fund's website. The country's 1.7-ton purchase in September was the first since December 2008. Kazakhstan's holdings increased 7.5 tons, Russia added 0.4 ton, and Turkey's reserves rose 17.5 tons, the data show. Germany, the second-biggest holder, after the U.S., cut gold holdings by 4.2 tons, the first reduction since June.
This Bloomberg story from yesterday is embedded in a GATA release...and Chris Powell's opening comments, along with the story itself, are worth reading.  The article is headlined "Brazil Boosts Gold Reserves to the Highest in More Than 11 Years"...and the link is here.


*  *  *  

¤ THE WRAP

In silver, the headline total commercial net short position increased by a moderate 1,300 contracts, to 51,000 contracts. This was essentially the first increase in 5 weeks, the same as in gold. The real story was in the details. Somewhat surprisingly, the silver raptors actually bought an additional 1,300 contracts, increasing their net long position to 9400 contracts, their largest net long position since August 21. The standout feature was that the big 4 (read JPMorgan) sold 2,000 additional contracts short, markedly increasing the big 4’s concentrated short position on only a modest advance in the price of silver. It would be hard not to classify this concentrated short selling as overt price capping. When one trader does most of the new short selling, price-capping is the first motivation that comes to mind, as free market sellers are more interested in getting the highest price possible, not in halting a price rally. Seeing how the new silver short selling was due to JPMorgan, it is reasonable that JPM had the same motive in gold as it had in silver, namely, keeping the price rally from picking up a head of steam. Therefore, I would bet JPM was the big gold short seller this [past reporting] week as well. - Silver analyst Ted Butler...17 November 2012
I was impressed to see both gold and silver finish higher especially considering the fact that they got sold off pretty hard during the Far East trading session.  However, I wouldn't read a whole heck of a lot into it, as we're still trading in a very tight price range in both metals...and as I've said a few times already this month, I'm expecting a somewhat similar pattern for the rest of November, as the roll-overs out of the December contract continue.
But, having said all that, I'm still somewhat surprised that "da boyz" haven't smashed the price based on the obscene and grotesque short positions they hold in the Comex futures market.  Maybe they are waiting until December...and then we'll get hit between the eyes just like what happened in December 2011.  Don't forget that the price got smoked in the lead-up to Christmas...and then really got blasted to the downside in the normally dead period between Christmas and New Years.
Just to refresh your memory, here are the gold and silver charts that cover that period...and they ain't pretty.
(Click on image to enlarge)
However, I'm just speculating, as I really don't know how things are going to play out between now and year end...and neither does anyone else.  As I keep saying, I'm always hoping for the best, but always ever watchful for "in your ear".
Of course we may have arrived at the point that the numbers in the Commitment of Traders Report really don't matter...but until that theory is laid to rest by JPMorgan/Scotia Mocatta et al getting over run...I'll stick with the COT Report's interpretation of what's probably coming at some point in the future.
By the way, because of the Thanksgiving holiday, this week's COT Report won't be posted on the CFTC's web site until Monday.
In Far East trading on their Thursday, not much of anything happened price wise.  Not surprisingly, volumes were virtually non-existent...but there were a fair amount of roll-overs in what little volume there was.  The dollar index was flat.  This situation has continued into London trading as well...and with New York shut for the day, I'll be very surprised if much happens during what's left of the Thursday trading session.
As I mentioned in this space yesterday, I will have no column on Friday, so I'll see you here on Saturday...Sunday west of the International Date Line.














    http://www.zerohedge.com/news/2012-11-22/austrian-parliament-hears-80-austrian-gold-bullion-reserves-london


    Austrian Parliament Hears 80% Of Austrian Gold Bullion Reserves In London

    Tyler Durden's picture
    Submitted by Tyler Durden on 11/22/2012 08:01 -0500



    Austrian Parliament Hears 80% Of Austrian Gold Bullion Reserves In London
    Today’s AM fix was USD 1,729.75, EUR 1,344.23, and GBP 1,084.35 per ounce.
    Yesterday’s AM fix was USD 1,726.75, EUR 1,350.71, and GBP 1,085.05 per ounce.
    Silver is trading at $33.38/oz, €26.00/oz and £21.00/oz. Platinum is trading at $1,588.25/oz, palladium at $650.60/oz and rhodium at $1,060/oz.
    Gold inched up $1.50 or 0.09% in New York yesterday and closed at $1,729.20. Silver surged to a high of $33.378 and finished with a gain of 0.51%. Gold is now some 1% higher for the week and silver nearly 3% higher for the week and higher weekly closes will be bullish from a technical perspective.
    Gold priced in Japanese yen rose to a nine-month high this morning at 143,262 yen/oz and is on track for its biggest weekly rise since February, up 2.8% according to Reuters.
    The yen came under heavy pressure from growing speculation that the Bank of Japan would aggressively ease monetary policy in the coming months.
    Gold trading is quiet with the US markets closed for the Thanksgiving holiday today and the early close tomorrow.
    Given the degree of uncertainty in the world - from the Middle East to Greece and the Eurozone debt crisis to the US fiscal cliff – most traders will be reluctant to take sizeable positions long or short and lacklustre, directionless trading may continue.
    However, any of these risks could lead to a sudden spurt of safe haven buying that leads to gold eking out gains this shortened week.
    The Austrian central bank keeps most of its 280 metric tons of gold reserves in the United Kingdom, Vice Governor Wolfgang Duchatczek was quoted as saying in the finance committee of the country’s parliament today, according to Bloomberg.
    Answering lawmakers’ questions, Duchatczek said 80%, or 224.4 metric tons of the metal was stored in the U.K., 17% or 48.7 metric tons in Austria and 3% in Switzerland, according to a summary of a closed-door committee meeting provided by the parliament.
    The reserve has been unchanged since 2007, Duchatczek was quoted as saying. The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said.
    Goldman Sachs is bullish on silver in 2013 and believe it will rise in price.
    Silver is seeing strong investment demand due to high inflationary pressures, monetary easing and low interest rates, Goldman Sachs said in a note on silver stocks.
    High silver prices in recent years have led to increased supply from mine production and old silver scrap.
    Goldman noted that world silver supply grew by just 2.2% in 2012, driven by a 3% gain in mined production and a 1% increase in scrap supply.
    Gold is poised to rise above $2,000/oz next year according to Merrill Lynch Wealth Management.
    They are wary of industrial metals and say that the lack of clarity on demand outlook and policies in China dim prospects for industrial metals.

    *   *   * 

    (Bloomberg) -- Gold Futures in Shanghai Rise; Silver Futures Reach 6-Week HighJune contract gains as much as 0.5% to 353.26 yuan/gram on the Shanghai Futures Exchange. Contract trades at 353.05 yuan at 9:02 a.m. Singapore time, climbing for the third time in four days. Jan-delivery silver advances as much as 1.4% to 6,938 yuan/kg, most expensive since Oct. 12. Cash bullion of 99.99% purity increases 0.4% to 347 yuan/gram on the Shanghai Gold Exchange; vols. were 3,541 kg yesterday vs. 4,227 kg on Nov. 20
    (PTI) -- Reliance Money targets Rs 2 trillion gold market with new planTargeting an estimated Rs two lakh crore unorganised (rpt) unorganised gold market in the country, Reliance Money today launched a new daily gold accumulation plan under which customers can invest as low as Rs 1,000 per month. Under the plan, named Reliance My Gold Plan, the customer can invest a minimum of Rs 1,000 per month and the company would use the money for purchase of gold on a daily basis and the total accumulate funds can be redeemed for gold coins or jewellery at the end of the investment tenure.
    The plan was launched here today in association with the World Gold Council as its marketing partner.
    (Bloomberg) -- Reliance Money, World Gold Council Start Gold Investment Plan The plan allows for a minimum investment of 1,000 rupees, says Vikrant Gugnani, chief executive of broking and distribution business at Reliance Capital Ltd.
    Investors can opt for investment period of 1 to 15 yrs, Compulsory delivery of physical gold, no transaction tax.


    and Germany getting more concerned..... the shit hits the fan when Germany formally demands the return of all gold in NY and London - and is told by the New York Fed and London  " Sorry , can't do that for you. "


    GERMAN CALLS FOR GOLD REPATRIATION INTENSIFY AS FED REFUSES TO ALLOW INSPECTION

    NOVEMBER 22, 2012 BY  87 COMMENTS
    Calls for Germany to repatriate its 1,536 tons of gold reserves held at the NY Fed are intensifying as Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reserves “in the interest of security and of the control process“.
    We have stated repeatedly that with repatriation and/or audit requests completed or in progress by Venezuela, Germany, Switzerland, and the Netherlands, The BOE and the Fed suddenly find themselves in a heap of trouble as the situation (and confidence that the Central banks actually still hold the tungsten gold reserves on deposit) is rapidly deteriorating. More on the Fed’s non-compliance with German requests to view/inspect their own gold below.

    Der Spiegel reports that nearly half of Germany’s entire gold reserves are still held (supposedly) 5 floors below the NY Fed:
    The Federal Reserve Bank of New York continues to hold 1,536 metric tons of German gold — or nearly half of Berlin’s reserves. This enormous hoard of gold is stored in the fifth subfloor of the bank’s building on Liberty Street, 25 meters (80 feet) below street level, and 15 meters below sea level. According to the bank’s website, the vault rests on the bedrock of Manhattan Island.
    The Fed has reportedly denied German requests to view their own gold reserves, ‘in the interest of security’:
    Tourists are allowed to venture below street level to see the vault. After descending in an elevator, they stand in front of an enormous steel cylinder that pivots like a door in a 140-ton steel-and-concrete frame. But not even the owners are allowed to view their own gold. According to the Federal Audit Office report,the Fed explained that “in the interest of security and of the control process” no “viewings” are possible.

    Of the 9 compartments supposedly storing German gold, German officials were finally allowed to briefly view a few bars from a single compartment in 2011:
    Finally, in 2007, “following numerous enquiries,” Bundesbank staff members were allowed to see the facility, but they reportedly only made it to the anteroom of the German reserves.
    In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out — out of consideration for the Federal Reserve Bank of New York.
    Unlike the US financial MSM, the German media is willing to discuss not only the question of whether the Federal Reserve has absconded with Germany’s gold, but also the risk of a collapse of a fully fiat currency:
    The debate over a collapse of strictly paper-based currency is experiencing a renaissance — as is the dispute over the gold reserves. Even Green Party financial expert Gerhard Schick has joined the fray: “I think the question of how much gold is available in an emergency is a valid concern.”

    Not surprisingly, Bundesbank officials are attempting to smooth over German concerns about their gold reserves, with board member Thiele snidely remarking that he took a look inside of one of the vaults at the NY Fed recently, and “There was no paper in there, just gold.“:
    The Bundesbank also objects to this notion for another reason. It says the gold is supposed to act as an emergency buffer. In the extreme situation of a currency collapse, the bankers say that the gold bars could easily and quickly be exchanged on location for pounds or dollars to pay urgent bills.
    In a bid to calm the debate, the Bundesbank has pledged to bring back and inspect 150 tons of gold from abroad over the next three years. Furthermore, there are plans to count and weigh the gold bars stored in one of the nine chambers at the Fed in New York — although no date has been set for this.
    Bundesbank board member Thiele was also recently in New York where he took a look behind one of the vault doors. He had good news for the members of the parliamentary budget committee: “There was no paper in there, just gold.”

    While Bundesbank officials likely understand the reality (much better than German politicians do) that a German repatriation of it’s entire 1,536 tons of gold reserves held at the NY Fed would likely cause a complete Western financial collapse if/when the Fed failed to promptly deliver said gold (tungsten free), confidence in the Fed and the BOE has clearly been shattered, and it is now only a matter of time for an absolute mad run on every last gram of physical metal underneath the NY Fed ensues.
     

    and from jim Willie ......

    http://www.silverdoctors.com/jim-willie-central-bank-gold-rehypothecation-scandal-to-take-gold-to-5000oz/


    JIM WILLIE: CENTRAL BANK GOLD REHYPOTHECATION SCANDAL TO TAKE GOLD TO $5,000/OZ


    NOVEMBER 22, 2012 BY  55 COMMENTS
    -The battle is on for delivery and verification for official gold accounts
    -Evidence grows that much of it is gone, and when demanded, replaced with urgency
    -It is soon to transform into a global gold war
    -The German Govt gold demand to the London and NY City bankers represents a big escalation in the gold war
    -The central bank coordinated QE to Infinity has brought questions of gold account location and integrity
    -The Allocated Gold Account scandal is a natural event to follow the LIBOR banker scandal
    -QE3 will assure a gold rise past the $2000 mark, but the new scandal will take the gold price to $5000

    -The powerful gold factors are aligned and in place, led by permanent ZIRP and unlimited QE
    A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicitous and probably highly illegal usage of Allocated Gold Accounts. When diverse scattered accounts are pilfered and depleted without authorization in Switzerland, resulting in several multi-$billion class action lawsuits in Zurich, all kept dutifully out of the news, that is one thing. But when a few key official government gold accounts are ransacked in systematic fashion from established trusted locations, defying and betraying the trust of the German Govt and other national governments, that is quite another. To be sure, the system can tolerate ransacking and replacing with scurried harried efforts the Venezuelan gold account like in 2011. The media told the story with creativity and aplomb, avoiding the truth, inventing a tale, but finding a credible pile of dung to feed the public, which swallowed it whole. The global monetary war has been raging for four years, ever since the Lehman Brothers firm was targeted and destroyed with planning and motivated execution, for the benefit of Goldman Sachs full CDS redemptions and exploit by JPMorgan in war chest reload under cover of bankruptcy court orders. The media prefers regularly to refer to the global financial crisis incorrectly and improperly. A crisis passes after a year or so. This war lingers like WWI and WW2 and Vietnam, with a clear emerging agenda to defend the USDollar regime from global isolation shun, to conceal the USTreasury Bond support mechanisms in derivatives, to avoid the US banking system from grotesque insolvency but kept afloat by grand money laundering channels, and to motivate an endless war to secure resource thefts and control that center on oil fields and the poppy fields. Witness the slow gradual inexorable collapse of the global monetary and financial system.
    This is a global monetary war as last hurrah for the longest running fiat paper currency regime in modern history, which has run from 1971. The current dying regime has been held up by pressure to maintain USDollar support and not diversify away from it. It has been held up by amplified usage of derivative support in the form of Interest Rate Swap contracts, thereby keeping USTBond yields ultra-low in the face of chronic $1.3 trillion USGovt deficits, and creating an illusion of a flight to safe haven. It has been held up diverse comical USFed support in the form of a cornucopia of liquidity programs, to supply the big US banks with never ending bond redemption and carry trade aid. The current dying USDollar regime has culminated in an admitted permanent monetary policy identified by a toxic 0% official rate and the emerging reality of limitless bond monetization. It has been held up profound distortion of economic statistics, which have become almost laughable in the abuse.


    To call this a financial crisis is like calling Hurricane Sandy just a bad storm, or calling a devastating drought just a dry spell, or calling raging cancer just a growth aberration, or calling a rape violation just an unfortunate encounter, or calling a death sequence just a passing, or calling a business bankruptcy just a bad skein on its account, or calling a home foreclosure just an opportunity to clean house. The nation and the world are undergoing a death sequence for the USDollar regime, and a vigorous corrupt defense to extend its life, in order to maintain power, to continue gigantic thefts, to perpetuate gigantic bond frauds, and to enable foreign account thefts of the traditional type and related to gold. The hidden motive in the Libyan overthrow of Qaddafi was to steal his 144 tons of gold held in London. The banksters needed it. The action and the reporting of the events were typical distractions laced with fiction.

    HORRENDOUS STORM DAMAGE

    The nation is heavily distracted by the Hurricane Sandy, its wind, its water, the resulting floods, the resulting electrical power outage, and ruined businesses, the controversies over flood damage versus wind rain and storm damage for insurance coverage. Look for Sandy to surpass Katrina in its total storm damage, which was $105 billion in 2005. Basic research indicates Sandy and Katrina had much in common, as the mad scientists attempt to play god. The efforts to produce a mild winter a year ago might have had a sling shot effect of generating a potent drought. The path was open for a unique storm, called once in a century, for the NorthEast. My memory is clear of the last hurricane to hit the region, which was Julia. The Jackass taped windows in the Boston area all for naught, since the 50-60 mph winds were nothing but a nuisance and cause for numerous downed trees on power lines. This storm is for the history books, perhaps retaliation by Mother Nature for messing in her kitchen, maybe worse. She always reaps her wrath and delivers her vengeance. The High Frequency Active Auroral Research Program has a shady sinister tone, but it is beyond the scope of the Hat Trick Letter. What Mengele was to medicine, HAARP is to meteorology. What Fort Dietrich is to viral weaponry, it is to weather control and seismic generations. What Monsanto is to modified genetic foods, it is to weather developments. The public seems laughably ignorant of devices to produce earthquakes and to amplify then steer storms, with nuclear power packs. Tesla notes and dreams have indeed come to life. Some personal contacts have close colleagues who actually worked on the project for the Boyz.
    The delusional dopey derelict US economists have surfaced with their errant vacant viewpoints of a reconstruction benefit boost to the USEconomy. If only all could break windows and direct garden hoses in living rooms, the national economy could recover quickly. The key news item is that finally the New York Stock Exchange was finally shut down for two days due to uncontrollable liquidity and its widespread damage, due to a Hurricane Sandy Weill margin call on systemic failure. No amount of high frequency flashes to dry out the systems could succeed. No amount of plunge protection teams could open the drains beneath the damage. No amount of derivative exercises could bring workers to the trading pits.


    The storm damage is estimated at $20 to $25 billion, again in a process divorced from the real world. Recall the Fannie Mae bailout estimates for $50 to $100 billion at first. Recall that the Iraqi War costs were $200 to $400 billion at first. The Jackass cited cost forecasts multiples higher, all accurate. Quick footnote on storm aftermath. Think Desert Storm, or Desert Shield, or whatever mucky name they offer. The yellow painted bricks taken from the Iraqi central bank were really gold bricks, stolen, then covered by a lame news network story gobbled up by the incredibly braindead public. In a few weeks, some concocted story might emerge about how the New York Fed was without electrical power, its vault systems left unsecure.

    The Hurricane Sandy storm damage will reach far past the $100 billion level, probably closer to $200 billion. The center of the impact was the NorthEast, the most densely populated area of the country. Already 20% of the entire US population has been affected, with almost 7 million homes without power. Insurance firms will be depleted, at a time when their income has been hampered by the ultra-low USTBond yields, coupled with mortgage bond losses. The USFed will receive a big boost in destroying final demand, as the central bank has conducted a hidden agenda to keep commodity prices down by harming the general economy and thus reducing final demand. They will next enjoy hypocrisy of high order, as the economy pauses, then energizes with rebuilding and cleanup. The central bankers will talk of a boost and stimulus. The price of lumber and cement might become a problem later on. Time to fix the broken windows and mop up the flooded living rooms. It is all good, as people are back to work, the economic recovery enhanced.


    GOLD WAR STAGE SET
    Back to the topic today. The global monetary war has escalated. It began with a profound bond fraud backed by mortgages, often with duplicate usage of income streams. It extended to sovereign bond wreckage, from deep government deficits, from wasteful bank aid to ward off insolvency, and lost trust of heretofore sacrosanct bonds. The war continues. It extended to the desperation by big Western banks to redeem their bonds by USFed and EuroCB largesse, even if illegal, even if unsterilized, even if the averted liquidations wreck the national economies, even if the actions directly result in a higher cost structure, even if bank runs are inevitable. It extended to destabilize further the fragile Middle East nations already beset by rising food prices, so that the departing leaders could either leave with gold wealth (see Tunisia) or have their foreign accounts stolen (see Libya). Tiny Ghana demanded its gold return from London, but suddenly its leader showed up dead. Syria does not have oil wealth, but it does possess valuable ports (see Russian naval port in Tartus). The global monetary war extended to collateral grabs and seizures, like in Greece, but with an entire table full of similar attachments being done in Italy, Spain, France, Portugal, and elsewhere, mostly in deep secrecy. It extended to exert extreme pressures on the European Commission to bend the rules, and to European Central Bank to bend the rules, and on the German High Court to bend the rules. The banker elite require rule changes in order to perpetuate the redemption of their busted portfolios at public expense from additional government deficits. One must be a billionaire to receive public aid, as the commoners need not apply.

    THE GOLD WAR BEGINS

    The absence of solutions offered has forced the major central banks into heretic caustic and destructive policies that are stuck in place. The nations involved are all uniformly subjected to the 0% corner, with their monetary spew reaching all corners of the world. The US Federal Reserve leads the way in justifying the highly destructive ZIRP and QE, the powerful 0% free money clarion call joined by endless bond monetization to pay for the wide stream of federal deficits. The Weimar America has produced a Pied Piper effect among the major central banks, coerced by a powerful Competing Currency War factor, where all must join or see their currencies rise to dangerous levels, sufficient to render deep economic damage in the vaunted export trade. The USFed in effect attacks the successful coveted export trades by monetary recklessness. The impact from the Global QE to Infinity, which the Jackass made reference to in 2011 long before other analysts, is to cause a defense from currency debasement. Wealth is under heavy attack. The impact has caused an undercurrent by the US and UK bankers in pursuit of gold supply to satisfy demands, like from Venezuela. The principal sources of gold continue to be the Bank of England, the Bank For Intl Settlements, and the Roman catacombs. The elite are having their gold vaults raided, done as loans to the major central banks and bullion bank centers. Resentment builds.

    Alternative supply sources have been urgently needed, thus the project in Libya. Thus the MFGlobal thefts. The list goes on, but the need is rising far faster than the channels can be supplied. Desperation has set in with the major bullion bankers and their clever craftsmen who manage markets with leverage, derivatives, and propaganda. The Gold War is escalating, as the insolvent bankrupt and desperate Western bankers are resorting to whatever means to locate gold assets. They have a two-fold double whammy at work. They must find new gold supply in order to shore up their own insolvent systems based upon gigantic flawed paper structures built atop debt structures. They must also find new gold supply in order to satisfy gold demands within the LBMA and COMEX, or else face market defaults that expose the acute shortage of Gold & Silver. The MFGlobal theft of private accounts was a direct assault and crime scene designed to satisfy a Silver market demand delivery schedule. Investors awaiting silver delivery had their accounts stolen. While permitted by regulators and the courts, the warning was given for a call to arms to protect and preserve true wealth held in gold accounts. It must be located and secured before it is stolen by the London and New York bankers.

    OFFICIAL GOLD REQUESTS AS ESCALATION

    The bond fraud and gold market fraud and futures brokerage fraud and central bank bond monetizations, and desperate reactions to insolvent broken national banking systems, and continued flow of government red ink in deficits, all these activities have motivated nations to check their gold bank accounts. What they see scares them witless, but it pushes them into action. The demand by Chavez in Venezuela over a year ago served as a stark wakeup call. Imagine mature experienced savvy German bank officials observing a socialist backwater Latino renegade like Chavez leading the way in defense from Western banker corruption and colossal thefts. Finally, the Germans are taking action. They tried in September to view their gold account in the New York Fed, but were turned away with insults and disdain. Word has come that the shun event in the Big Apple was probably the fifth time in the last few years that a German delegation has been turned away. The situation is as complex as it is dicey. The Germans under the Deutsche Bank flagship had been a principal accomplice and cooperative partner in the great gold game, where as a large collusive group they leased national gold, dumped it on the market, supported their paper currencies, while the banking elite speculated and profited in the $trillions on leveraged bets that were basic betrayals of their nation. The Jackass prefers the words financial treason. To use the metaphor, the Golden Harp will be busy causing deep damage to the global financial structures, from its broken bond foundation to its uncollateralized major currencies. The Golden Harp will act as a great destroyer from the financial tectonic plates that stand as the faulty bond foundation, to the stormy ether in which the baseless currencies float in infinite volumes.
    Some historical research reveals that the infamous Brown Folly had a basis in aiding Deutsche Bank. The Bank of England was directed to sell a huge lot of its national gold treasure between 1999 and 2002 to mark the Gold market bottom. It was not sold, but rather handed to D-Bank in order to satisfy a big margin call. They aided both D-Bank and Goldman Sachs, each heavily short and at risk. The Gordon Brown action was done with two unusual signpost markings. The sale was announced in advance, thus permitting front running by London and New York bank buddies. It was done in auction, to assure the lowest possible price. The actions set the low. But the actions bailed out D-Bank secretly. The aid to GSax was one of a string of ugly pearls, which the arrogant elite firm never seems to mind and never bothers to cover up too effectively. They benefited from the TARP Funds as #1 son in the family. They did work feverishly in 2009 to conceal their Unix box for tapping into the NYSE for peeking at trades, front running them, and skimming pennies on billions of trades. They enlisted the help of the FBI to arrest the Russian rogue, painting him as a villain, even prosecuting him, despite the clear legal violations from the GSax tool. He tried to show the world what scum GSax was, how they were common criminals in white collar crime. Back to Germany.


    In the summer 2012 months, a significant sequence of events took place. The CEO Josef Ackerman was ousted finally. Few realized that his removal was a key event in the change of tide against the Western banker elite.The story went largely unreported. As leader of D-Bank during many years of solid cooperation with London and New York banker games and gimmicks, he knew too much. My best info source reported last spring that several Interpol agents and high level investigators occupied Ackerman’s office while he was present. They obtained files, downloaded documents, and had their way. The shocked CEO made a phone call to an attorney, and was frustrated at the lack of pull. He made another phone call to a ranking judge, but again was frustrated at the lack of pull. He was told that the raid was done from a higher level than the German Govt. The Jackass was told that the raid was the work of a powerful new sheriff in town, with Eastern entity connections, hell-bent on justice, with a no nonsense attitude, with staggering wealth at their disposal.

    The global monetary war extended in March, April, May, and June to a profound powerful run of gold bullion by Eastern entities against London banks. Margin calls of unusual type prevailed, where cash cannot satisfy the margin calls, where wrecked leveraged bets on currencies and bonds demand action taken to fortify the margin. In all, approximately 6000 metric tons have departed London bank vaults since March, all headed East, in the biggest raids in modern history. The US press, London press, and Western European press have been silent. The silent spring reminds one of the missing bird chatter from DDT decades ago, chronicled by Rachel Carson. The toxic paper has a chemical parallel. These London trades have been the object of Jackass study for a couple months. My firm belief, backed up by hints of confirmation from sources, indicates the Eastern pressures on London banks could involved enormous amounts of Official Gold Accounts and private Allocated Gold Accounts, improperly used (rifled, pilfered, stolen) for the original margin placement. Satisfy the margin call with like kind asset. Conceal the gold account seizures, but in the process the owners recall their gold bullion in huge volumes, with deals cut and secrecy maintained. The London bankers find their nether onions caught in a powerful vise, and the Easterners are hardly in the mood to relieve the pressure.
    GERMAN AND DUTCH DEMANDS

    The German Govt demands a full accounting of its official gold accounts held in foreign lands. They demand a careful accounting that involves inspections, weighing, assurance of gold proof, and examination of markings, perhaps even some testing of bar cores. They demand an accounting that cites locations and storage. They demand a full complete audit. The distrust is thick. James Turk, founder of Gold Money, believes the German gold is all gone, used up in the two decades of gold games that defended the fiat paper currency regime. He lives and works in London, has ties there, and probably is privy to the grapevines. The order is part of a compromise between the German central bank and the Audit Court, which has called on the Bundesbank to take stock of its gold holdings outside Germany, saying it has never verified their existence. Apparently, no longer will the word of the New York Fed or the Bank of England be sufficient. They have been caught lying too often. They have been implicated in deep bank corruption too often. They are being depleted of their gold, in regular shipments to cover the demands, the evidence for which is detailed in the October Hat Trick Letter. Call it backlash from the Quantitative Easing and infinite endless unlimited bond monetization that is an absolute guarantee of systemic currency ruin. Call it a backlash from the sequence of rogue bond redemption plans declared by King Draghi at the Euro Central Bank. The Western Governments are scurrying to locate their Gold reserves, realizing that Gold is the only wealth asset they possess, except for the buildings and edifices that house their depleted gutted central banks.
    My firm belief is that the Gold Wars have reached a new level, where Germany will be disappointed when it learns the gold is gone. To be sure, big distractions and absurd excuses will be offered. The pressure is on. The Dutch have joined the movement in making demands on London and New York. The call to the corrupt fortress is plain: WHERE IS OUR GOLD?? Maybe like with Jericho, after several calls the walls will fall. The irony is thick, since for 20 years the Western leaders have proclaimed gold as a barbarous relic that pays no yield, a dead asset. So the Germans with Dutch echo want a full accounting of their prized so-called dead asset, which in the end will provide salvation when the new monetary system is put in place. That system is ready, with full trade settlement foundation. It awaits the monetary system full collapse.


    The outcome will be shown soon enough. The London and New York bankers improperly used the German gold, and official gold from numerous accounts like from France and Spain, from Venezuela to Mexico, to enforce the Strong Dollar Policy and to defend against its collapse. The Mexicans this month performed a formal genuflection before the London Banker Kings, announcing no need to repatriate their gold, as full confidence was expressed. What lackeys, likely offered a bone somewhere. Allocated Gold Accounts have been pilfered with governments as the owners. They will be angry. They must walk a fine line to express outrage but to protect from revelations pointing to their own complicity and benign neglect. The flagship bank of Germany which bears the national name has been deeply involved. In recent months, D-Bank has been cooperating with the Interpol and Intl Court of Hague in pursuing the banker corruption and high crimes against currency, wealth, savings, and humanity. Delicate deals have been struck with D-Bank. It will be interesting to observe how the German demands for gold account audit are met, and how the German Govt reacts to delays and coverup. My belief is that the D-Bank flip was key to the breaking of the LIBOR bank scandal.











    GOLD PRICE REACTION


    The Allocated Gold Account scandal is at the doorstep. The German Govt demand for full accounting of its foreign gold account is the knock at the door. They were shown extreme disrespect by the New York Fed in September. The recent demand is the consequence, in a ramped up escalation of the conflict, better described as gold war. My best gold trader source has assured that the eruption of the Allocated Gold Account scandal will come in the wake of the LIBOR scandal. They are related links in the exposure of big bank corruption. The LIBOR scandal began the process of investigation, discovery, and action, if not prosecution. Word repeats from key sources that the biggest banker criminals will never see justice. They will just vanish. An important consequence of the LIBOR followup is the lack of trust between bankers. They are all under investigation for collusion, and therefore must be silent as each is subject to indictment and lawsuit damages. The discovery process is unique, as the investigations can legally pursue and request documents, conversations, emails, and testimony that was previously not available. The strong crowbar is being used widely by strong arms and hands, with formidable bodyguards behind them. The Allocated Gold Account scandal is at the doorstep, possibly to break open by German demands.


    The official in major nations are catching on. Expect more national government officials to make demands of London and New York. They suspect their national accounts are stolen, replaced by gold paper certificates, kind of an IOU left behind by the thief with defiant signature. Now a new twist. Romania has joined, as they recently demanded a full audit of their national gold account held by the Kremlin. The irony and contrast is due next. Expect the Kremlin to comply with the request from Bucharest. Their responsible response will put additional pressure on the corrupt Anglo banking centers, the site which the Jackass has long described as the center of the financial crime syndicate. The contrast will be embarrassing to the Western financial centers and their leaders, the dons to syndicate power.

    The Gold price is sure to respond to the realization that the London and New York bank vaults do not contain the official gold on account. Supply is not in existence, sure to have an effect on price, as demand escalates globally. The trust has been violated. The anger will be acute. The global reaction will be recognition that the Western Governments do not possess the gold they claim to reinforce the integrity and value of their entire monetary systems. What faith remains in the fiat paper system will vanish quickly. Not only are the various sovereign bonds nearly worthless, but the collateral understood to reinforce their value is gone. The monetary system deserves to be foreclosed upon. The global currency system with the USDollar at its center deserves to be removed, replaced, and reconstructed.


    Recall Jim Sinclair and his numerous calls between years 2005 and 2007 for a $1560 Gold price. Many called him crazy, but he was proved correct. The critics to the Gold Sound Money Movement still do not show respect. Rather they are loaded with contempt, clinging to failed Keynesian principles and empty beliefs that central banks can install solutions. They are best qualified to manage their gold thefts, manage the heavy narco money laundering, manage the multi-$trillion grants to banker colleagues, manage the bond shell games, and clean up after the mortgage bond frauds. Those are their best work accomplishments. The Gold bull market is entering an important second gear after a long year of consolidation. The feckless idiots who claim the Gold Bull is done seem the most ignorant in the financial classroom, the dumbest and most deficient in mental processes.

    The Gold bull market has several primary cylinders.

    1) Negative real rate of interest. With official interest rates stuck under 1% by all major central banks, the actual interest rate after subtracting price inflation is deeply negative. This factor has been and will continue to serve as the most important among many factors. It is the gigantic blind spot among gold critics. The long-term USTreasurys offer a mere 2% or 3% at most, far below the prevailing price inflation in the real world. Effective returns are thus negative. Investment in Gold as a hedge against the absent compensation for the erosion of money, it just makes sense.
    2) Bond monetization. With unlimited bond purchases from QE1, then QE2, then Operation Twist, now QE3, and on and on until QE175, the debasement of currency is entrenched, absolute, and shocking. The movement is joined by the Euro Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Japan. The debasement of money is powerful and without abatement. Investment in Gold as a hedge against the reckless production of bond supply, it just makes sense.
    3) Unsterilized bond purchases. The QE3 admission of associated bond sales was a story not adequately told. In fact, it was a story told by omission. In the past, especially with the deceptive Operation Twist, the bond purchases were often made with funds derived from other bond sales. Like sell short-term USTBills in order to have funds to buy long-term USTBonds. The QE3 details indicate that Weimar Amerika has arrived, with extraordinary bond purchases using printed money. The debasement of money has turned nuclear. Investment in Gold as a hedge against the unchecked debasement of money, it just makes sense.

    4) Permanence of QE. In the summer months of 2009, the Jackass was vocal and adamant, claiming that the Exit Strategy was a ruse, an impossible door to depart from the drastic desperate duplicitous central bank monetary policy. My stated forecast was that the ZIRP would remain and become permanent, and that QE would come in force. The buyers of USTBonds are long gone, except for other central banks playing the Competing Currency War games. The USFed under Bernanke announced last month that ZIRP would be extended until the end of year 2015. This is an admission that it is permanent. Every three to four months, they assure another year of permanence. The debasement of money has become a permanent fixture in a broken buggy. Investment in Gold as a hedge against the permanent debasement of money, it just makes sense.
    GOLD BULL BILLBOARDS

    The Quantitative Easing coupled with Zero Percent Interest Policy are dual firing chambers of a central bank shotgun aimed at destroying money. They will destroy wealth. They will destroy economies. They will destroy banking systems. They have already destroyed the central bank franchise system and bank integrity. Their actions will lead to a global rebellion against the USDollar, a movement well along. They will assure a USDollar isolation. They will bring about a replacement trade settlement system, which is actually almost in place. When combined with flat-footed Iran sanctions, the movement has accelerated to find USDollar alternatives in trade, and to diversify away from US$-based assets held in reserve.

    More importantly, the QE and ZIRP assure the Gold price will rise past the $2000 mark, and that the Silver price will rise past the $60 mark. That is the direct eventual unavoidable effect of QE & ZIRP, the signal flares of central bank failure and monetary system ruin. Their permanent monetary easing is incredibly bullish for the Gold price, a guarantee of an endless bull market. As long as the bond monetization continues with the 0% official rate, the Gold bull market will be equally enduring and endless. It is that simple!!

    The QE & ZIRP assure the breakout to new highs. However, the Allocated Gold Account scandal will assure the Gold price reaches $5000 and the Silver price reaches $200. The scandal has begun. The stage is set. The official Gold Accounts from foreign nations have been taken. Choose your word: improperly used, illicitly seized, illegally stolen, desperately hypothecated. The point is that national gold treasures held in London and New York have vanished over the last 20 years, a process begun with the Clinton-Rubin Admin, continued with the Bush-Paulson Admin, defended by the Obama-Geithner Admin. The names of the administrations must include the Goldman Sachs representative in charge of the USDept Treasury, the guy with the stealing rights, as my friend in Reno colorfully calls it.


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