Asian Gold Premiums Hit New Highs as Europe Urged to Start “Agressive QE”

May 22, 2013 By 2 Comments

Asked yesterday on Bloomberg TV whether the Fed will start to cut its $85 billion program of monthly quantitative easing, New York Fed president William Dudley said “It really depends on how the economic outlook evolves…It’s too soon to make that determination.”
Even if the US central bank does slow its purchases of government debt and mortgage bonds with newly created money, Dudley said the Fed would only be “adding less stimulus” rather than actually “tightening” monetary policy.

Dudley’s colleague James Bullard, president of the St. Louis Fed, meantime warned Europe yesterday that it needs to start quantitative easing to avoid a long, Japan-style depression.   “You should worry about it, and then take policy action to avoid it,” said Bullard. “One way to get stuck would be to be passive in this situation and not take some aggressive action to try to get inflation back.”
“Europe can draw lessons from Japan on the dangers of half measures.” agreed new Bank of England governor Mark Carney.

[Read more...]

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BOE’s Carney’s DIESELBOOM: Policy-Makers Working Diligently to Devise an International “Bail-In” Regime

April 18, 2013 By 17 Comments

bail-inOutgoing Bank of Canada Governor (& Goldman alum and incoming BOE Governor) Mark Carney just released an epic Freudian slip today during a televised speech in Washington regarding the Western financial system’s co-ordinated move from bailouts to bail-ins as official policy to future bank crises.

It’s one thing when the editor of an obscure financial blog discovers bail-in language written into policy by the Fed, Bank of England, the Bank of Canada, Italy, & New Zealand and it goes viral throughout the alternate financial blogosphere, and it is another thing entirely when the incoming head of the Bank of England himself accidentally lets slip that Western financial policy-makers are working diligently to devise an international “bail-in” regime to prevent big bank failures.

Mark Carney’s DIESELBOOMesq retraction in 3…2…1…. [Read more...]

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FDIC & Bank of England Create Resolution Authority for Unlimited Cyprus-Style “Bail-Ins” for TBTF Banks!

April 2, 2013 By 103 Comments

bank failure*BREAKING SD ALERT*
Editor note: Bringing this massive story back to the top of the news feed for those who missed it over the holiday weekend.

On Wednesday, SD broke the news that Canada had buried a provision for depositor bail-ins for systemically important banks deep inside its official 2013 budget, and stated that the Cypriot bail-in was not just a one-off event, but is in fact the new collapse template for the entire Western banking system.

We suspected that the same policy change had been made by the US & the UK, but was simply yet to be discovered, buried in the website of a Federal agency.

We suspected correctly… [Read more...]

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Eric Sprott: Do Western Central Banks Have Any Gold Left??? Part II

March 19, 2013 By 8 Comments

sprottWe are currently in an environment where policy makers are intent on devaluing their currencies in an effort to create growth. Real rates continue to stay negative in most of the developed world. Every marginal dollar of debt that is created is producing lower and lower amounts of growth. In a world overwhelmed by mountains of debt and economic growth which is sub-par at best, precious metals and real assets can act as insurance against the stupidity of policy makers. The evidence pointing towards the suppression of the gold price is becoming increasingly apparent. Don’t be the last person to figure this out! The current sell-off in gold should be viewed not with extreme trepidation but as an unbelievable opportunity to buy the metal at an artificially low value. [Read more...]

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MEXICO’S FEDERAL AUDIT DEMANDS PHYSICAL INSPECTION OF SOVEREIGN GOLD HOLDINGS HELD AT BOE!

February 27, 2013 By 15 Comments

Bank of Mexico*BREAKING
Guest Post, by Guillermo Barba

Today we have an exclusive note on this blog: the Mexican Superior Audit of the Federation (“ASF” in Spanish), in its “Report of Supreme Audit Results of the 2011 Public Account” delivered last week to the Chamber of Deputies, gave a stern “recommendation” to the Bank of Mexico (Banxico) to audit the Bank of Mexico’s gold reserves held in London at the Bank of England.

The reason is one of the most important issues we have addressed here: the gold reserves of Mexico.
As you may recall, last year we informed that after four months of legal wrangling with Banxico, it was forced to give us the information about the supposed physical location of Mexico’s sovereign gold holdings.  In the disclosure, we discovered that 95 percent of the Mexican gold reserves (about 125 tonnes) were abroad, and almost all (99%), in London, England.The ASF has determined that Mexico should “make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and thecompliance with the terms and conditions of dealing with this Asset…” It was verified by the ASF that this has never been done by Banxico.

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Gold Bank Run Accelerating…Now the Swiss Want Their Gold Back- All 1040 Tons of It!

January 25, 2013 By 61 Comments

With last week’s announcement by the Bundesbank of the repatriation of 674 tons of German gold from Paris and NY over the next 7 years, we predicted that an avalanche of gold repatriation requests would soon be made to the BOE and the NYFed. 
It appears that Switzerland may be next to the game, much to the dismay of the SNB.  The Swiss gold initiative, an initiative to Secure the Swiss National Bank’s Gold Reserves, launched in March 2012 by four members of the Swiss parliament, has grown to 90,000 supporters. 
Once 100,000 supporters are achieved, the Swiss Parliament must take up the referendum. 

The initiative asserts that the Swiss people should have a right to vote on 3 things, none of which will please the banking cartel: [Read more...]

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Jim Sinclair: German Gold Repatriation is the Most Significant Gold Event in 50 Years, Beginning of the End of the US Dollar As Reserve Currency

January 15, 2013 By 29 Comments

Legendary gold trader Jim Sinclair has sent an email alert to subscribers today regarding last night’s news that Germany will begin repatriating it’s gold held on deposit at the NY Fed back to the Bundesbank, as well as all 374 tons held at the Bank of France.
Sinclair states that history will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice, and that under normal circumstances, no major central bank would insult another major central bank in the way that the Bundesbank just has.

Sinclair states that the Bundesbank repatriating its gold reserves is the most significant event in the gold market since Charles De Gaulle called the US hand that it would stand by convertibility, and that gold is headed to $2111 in the near future in the wake of the Bundesbank’s actions.

Sinclair’s full MUST READ alert below: [Read more...]

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Bank of Australia Admits 99.9% of Gold Reserves Are Held in Bank of England

December 19, 2012 By 28 Comments

How do you say rehypothecation in Australian? 

After months of persistence, our friend Greg from AUSBullion has received written confirmation from the Reserve Bank of Australia that the bank holds all but 80 kg of Australia’s gold reserves at the Bank of England.  Out of 80 tons of physical gold, less than 0.1% is held in Australia!

The Central Bank defends London’s storage/rehypothecation of Aussie gold, stating: London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational  perspectives to relocate the gold bars to a facility in Australia.

The Bank of Australia’s admission that nearly all of Australia’s gold reserves are on deposit at the BOE is below:
[Read more...]

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A la Weimar: The Bank of England has just crossed the line into Outright Government Monetizing

November 12, 2012 By 17 Comments

Last week’s news that the Bank of England had stopped Quantitative Easing early because it was not needed was a load of rubbish.  The truth is that it was stopped early because MORE COUNTERFEITING WAS NEEDED, and the BOE figured out a way to directly monetize the debt, while out of public scrutiny. 
QE will continue TO INFINITY….AND BEYOND!!!  on both sides of the pond.
The MSM story actually compares the practice to Weimar Germany.

As the Telegraph reports:

So now we know why the Bank of England’s Monetary Policy Committee called a halt to more Quantitative Easing this week – it’s because the Chancellor and the Governor of the Bank of England have concocted a backdoor way of doing the same thing. [Read more...]

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Fed Sent Bundesbank 172 Bad Delivery Gold Bars in 1968

November 9, 2012 By 43 Comments

The Tylers at ZH have discovered a 1968 memo from the BOE archives sent by the Bank of England to the Federal Reserve revealing that the Fed sent at least 172 bad delivery gold bars to London in the late 1960′s for safekeeping for the German Bundesbank as repayment for swaps.

The memo reveals that London assayers discovered that the Fed through Johnson Matthey sent the Deutsche Bundesbank 172 ”bad delivery” gold bars, and the ”out-turn of the re-melting showed a loss in fine ounces terms four times greater than the gross weight loss”.

The memo also indicates that the Bank of England was willing to keep the discovery private due to the fact that the gold was to be held for the Bundesbank.  A declassified report discovered several weeks ago indicates that the Bundesbank subsequently repatriated 2/3rds of this gold in question from 2000-01. [Read more...]

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Precious Metals Set For Higher Weekly Close And Seasonal Year End Rally

November 9, 2012 By 6 Comments

Gold is 3.35% higher and silver 4.53% higher this week in US dollars in the aftermath of Obama’s re-election.  Gold in euros looks set to break out above €1,400/oz and is 4.1% higher and in sterling gold has risen 3.7% so far this week. Silver is 5.25% higher in euros and 4.8% higher in pounds. Gold and silver are set for higher weekly closes in all fiat currencies which may negate the recent bearish short term technical picture and set the precious metals up for the traditional yearend rally.  The data clearly shows that November is gold’s strongest month and one of silver’s strongest months. December, January and February are also strong months – prior to a period of weakness is often seen in March. [Read more...]

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Bank of England Halts QE3 Early- King States No Plans For Further Bond Purchases

November 8, 2012 By 6 Comments

The Bank of England Thursday prematurely halted it’s Quantitative Easing program at £375 billion, ending it’s QE3 early.  Governor King stated he has no plans for further bond purchases, and that the BOE will shift their focus to stimulating bank lending.

Apparently all of Europe including the UK will now allow Uncle Benny and the inkjets to perform their dastardly counterfeiting for them. [Read more...]

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Ned Naylor-Leyland: If Your Gold Reserves Are at the BOE or NY Fed, You Have No Chance of Getting Out With Any Metal!

October 31, 2012 By 20 Comments

The Doc welcomed back Cheviot Asset Management’s Ned Naylor-Leyland for an exclusive interview Sunday regarding the German gold repatriation, and how it will affect the physical gold market going forward.
In this MUST READ interview, Naylor-Leyland stated that when you take into account the fractional reserve accounting by the bullion banks, the 50 ton annual gold repatriation number is much larger in terms of the impact on the underlying market.

Naylor-Leyland believes Germany and the other central banks storing their gold reserves at the BOE and the NY Fed are essentially SOL, stating: If you’re holding your central bank gold reserves either in the Bank of England or the NY Fed, unless you are Theseus trying to find the Minotaur, you have no chance of getting out of there with any metal.  The gold ownership chain of custody is severely tarnished and it’s obvious that it’s a problem.  In light of what we know about the tightness of the physical market it appears the pressure is on, and it’s not likely to dissipate.

Full MUST READ interview with Ned Naylor-Leyland on the central bank panic out of paper and into physical gold reserves below: [Read more...]

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Netherlands’ Citizens Group Demands Central Bank Reveal Location of Country’s Gold Reserves

October 27, 2012 By 32 Comments

First Venezuela, then Germany, and now the Netherlands want their gold back.
In the wake of this week’s ruling by the German Federal Accountability Office that Germany must repatriate and audit 150 tons of its gold reserves from the NY Fed over the next 3 years, a Netherlands citizens committee has filed a petition demanding the Central Bank release information ”on the quantity and storage location of the Netherlands’ physical gold, and on the extent and nature of the gold claims.”

In the words of one of the petitioners Tom Lassing: “The last years have seen a loss of trust in the financial system and we have been fooled a lot. So I say: Just let the central banks like DNB show the gold is really there.

Should the citizens committee be successful, we are confident they will discover the vast majority of the country’s gold reserves- 10th largest in the world at 612,000 kilograms, are held in the basement of the NY Fed.
As we stated several days ago, the jig is now up.  The German accountability office will trigger an avalanche of gold audit, delivery, and repatriation requests around the Western world.   We wish the Fed luck staying ahead of the cascading avalanche of requests to convert unallocated (rehypothecated) gold into solid physical metal.  They’re going to need it. [Read more...]

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Germany’s Gold Repatriation and Brown’s Bottom

October 25, 2012 By 12 Comments

Submitted by SD reader Jack

Sometimes we need to look back in history to “connect the dots”. In 1999 Gordon Brown started selling England’s gold into the market place. This was done by auction and announced. Coordinated as if it was meant to keep prices low. Most people think Gordon Brown was just stupid. It would now appear that we have now found the reason for this market manipulation of gold at the time.

The 400 tons of gold that Gordon Brown dumped on the market between 1999 and 2001 (60% of the UK’s gold reserves) likely went DIRECTLY TO THE BULLION BANKS FOR THE SOLE PURPOSE OF MEETING THE BUNDESBANK’S 1000 TON GOLD REPATRIATION REQUEST!!

[Read more...]

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