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Egypt Bans Export Of Gold "In Any Form"

Tyler Durden's picture


Looks like speculation that the Egyptian Central Bank's gold stash may have been just modestly plundered is starting to play out. According to Reuters. "Egypt has issued a ministerial decree
immediately banning the export of gold in all its forms
, including
jewellery and ornaments, until June 30, the official news agency MENA
said on Sunday. "This decision, which comes in light of the
exceptional circumstances the country is passing through ..., is to
preserve the country's wealth until the situation stabilises,"
said. Egypt's currency has come under pressure after some of the
country's main sources of foreign currency, including tourism and
foreign investment, collapsed after the protests that ousted President
Hosni Mubarak erupted on Jan. 25." Obviously, this "emergency" step would not be required if the E(gyptian)CB was still in full possession of its purported stash of the inedible metal. Whether the decline is due to alleged Mubarak sequestering of the shiny metal, or by other members of the former ruling regime is unclear, but one thing is certain: the WGC is long overdue in adjusting the Egyptian gold holdings from 75.6 tonnes to their real current value... far lower. As for Egyptian fiat: that is as freely exportable now as ever. If only anyone wanted it. But yes, somehow emerging markets are manipulating their currencies lower than fair value, the conventional wisdom claims.



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Sun, 02/27/2011 - 15:12 | 1001882 UninterestedObserver
UninterestedObserver's picture

Don't worry it could NEVER happen here!

Sun, 02/27/2011 - 15:29 | 1001925 Michael
Michael's picture

Enough of my other favorite subject for a while from me. Peek awareness has been achieved.

Now for the end run around strategy, engage.


Egypt has determined gold is of great value as it has always been throughout history. Gold = Enemy of Fiat.

We must now demand a US audit of Fort Knox. Where's America's gold and is it really there?

If I can get you guys to repeat the words "Fort Knox Gold", "Show me the Gold", Where's the Gold", etc over the next week about 5,000 times, The rest of the country will become obsessed with auditing the US Gold supply and force our government to show it to us.

Demand the US government show us our gold!

Sun, 02/27/2011 - 15:51 | 1001969 malikai
malikai's picture

I don't get it. I see all this audit ft knox business, but why bother?

If people find out there is 800 tons of tungsten in ft knox, what difference will it make? Bretton Woods was over so many years ago nobody even knows what it was. So who gives a shit? It's not like the soccer mom is going to think twice about it when she finds out. Will it matter to a Chinese or Arab exporter that Ft. Knox is the most expensive tungsten storage facility on planet Earth? I don't think so, since they of course, get paid in dollars.

The only gold anybody should be concerned with is their own. And the protection thereof from their peers and government.

Sun, 02/27/2011 - 16:07 | 1002010 Michael
Michael's picture

Why do people climb mountains?

Fareed Zakaria GPS of CNN interviewed Michael Lewis today discussing his book, The Big Short. It was awesome.

If someone could Youtube it for us, that would be great.

Sun, 02/27/2011 - 16:26 | 1002042 Michael
Michael's picture

Nice Housing Vs Gold Chart.

Nice Silver Vs Oil chart hear, a bit outdated. I'l ike to see an updated version. Scroll down.

Sun, 02/27/2011 - 16:28 | 1002049 Dark Space
Dark Space's picture

youtube it? You may have just dated yourself...



Sun, 02/27/2011 - 16:38 | 1002059 Michael
Michael's picture

Thanks for the link. I needed that. There must be a much longer version talking about a lot of other things.

I heard Lewis talking about the origins of the Tea Party, why they got started and the Federal Reserve. He said no one was talking about this before the Ron Paul movement.

Sun, 02/27/2011 - 19:36 | 1002405 Careless Whisper
Careless Whisper's picture

okay, here are your choices:

a) $100 in U.S. currency (aka a "benjamin")

b) 3 ounces of silver

c) one barrel of oil (west texas crude)

right now, i'm choosing the oil.


Sun, 02/27/2011 - 20:55 | 1002556 FeralSerf
FeralSerf's picture


a) $100,000 US (aka 1,000 benjamins)

b) 3,000 oz. silver

c) 1,000 barrels of oil

Where are you planning on storing the oil or if the merde hits the fan, how are you going to sneak out of Dodge with your stuff?  Got fire insurance?

Sun, 02/27/2011 - 22:17 | 1002750 Careless Whisper
Careless Whisper's picture

the silver is easy to store. divided into 4 locations. home and 3 safe deposit boxes in different cities. this is what 100 ounces looks like, so multiply by 30:

as for 1,000 barrels of oil, or $100,000 worth, i'll take 600 shares of XOM and 500 shares of CVX  --- same as owning oil in the ground.

my last choice is to own rapidly depreciating fiat dollars.

Sun, 02/27/2011 - 22:33 | 1002807 PaperWillBurn
PaperWillBurn's picture

"same as owning oil in the ground." shares are not convertible into oil and paper is never the same as owning something real and useful


Sun, 02/27/2011 - 22:58 | 1002852 Careless Whisper
Careless Whisper's picture


shares of common stock is not the same as fiat money. the fed reserve does what they damn well please when it comes to printing federal reserve notes (money), but exxon isn't about to issue new shares and dilute the existing shareholders! that would require a vote of the board of directors and it is very unlikely, and if they do it, they better have a good reason. buying shares of common means you are buying a percentage of the company, although rather small at our level. buying exxon isn't exactly the same as owning the oil itself but it's the next best thing and a practical solution to owning an appreciating asset.

Sun, 02/27/2011 - 23:59 | 1002974 FeralSerf
FeralSerf's picture

Exxon doesn't have to issue new shares. Wall St. naked shorters can do it instead.  When  the SHTF why do you think the PTB will let you have access to your safe deposit boxes without  a cop watching you (and confiscating the contents for "safe keeping").

It seems to me that Cisco shares have been created to be used as fiat currency.  Why not an oil or mining company?    I'm pretty sure that's been tried too.

I thought your first choice was oil, not silver.

Mon, 02/28/2011 - 01:14 | 1003123 Careless Whisper
Careless Whisper's picture




if oil goes up, for whatever reason, it doesn't make sense that there will be alot of money shorting XOM or CVX. if it turns in to a bubble or goes parabolic, then you might be right. although oil is my first choice, i'm bullish on silver and gold because, as you know, the privately owned federal reserve is destroying the dollar. and your advice on safe deposit boxes is noted. if things start to get really bad, the only thing left in there will be my birth certificate. some of us have one. and yes CSCO is junk but that doesn't mean all stocks are.

Sun, 02/27/2011 - 17:38 | 1002172 UGrev
UGrev's picture

Did you miss the part where FIAT is worthless?

Sun, 02/27/2011 - 19:00 | 1002356 silver_serf
silver_serf's picture

It matters becuase when ft. knox is found empty, my gold is much more valuable.

Sun, 02/27/2011 - 20:14 | 1002473 FubarNation
FubarNation's picture

The gold is still there....and lots of it.

Sun, 02/27/2011 - 21:04 | 1002567 silver_serf
silver_serf's picture

Ehhh... there was an audit????

Mon, 02/28/2011 - 00:42 | 1003056 Nobody special
Nobody special's picture

It doesn't matter because Gold is not money.  Isn't that what we keep hearing?  CB's store it, history proves, and Egypt seems to know... but to the general public Gold is supposed to just be a barbaric relic nobody really needs.  The average schmoe out there could care less what's in fort Knox.

Of course, the average schmoe doesn't decide world economics now, does he.  Pretty soon, the reality of want VS need is going to be dramatically revised.  ;)

Mon, 02/28/2011 - 04:38 | 1003347 malikai
malikai's picture

This I can agree with. However, a CRIMEX default will make that point known when silver blows up, so again, there is no need for political action. There is only a need for unified physical purchasing. Something many here have been advocating for quite some time.

Sun, 02/27/2011 - 16:54 | 1002106 DoChenRollingBearing
DoChenRollingBearing's picture

@ Michael the Nancy,

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

There's my contribution.  Thanks for the idea.

Sun, 02/27/2011 - 18:18 | 1002265 Troll Magnet
Troll Magnet's picture

what about those with gold teeth or fillings?  do they need to pull out their teeth and leave them at the airport if they want to travel?

Sun, 02/27/2011 - 19:03 | 1002359 silver_serf
silver_serf's picture

If departing from mexico, yes.  They may just do it for you, free of charge

Sun, 02/27/2011 - 20:38 | 1002521 Michael
Michael's picture

Thanks DCRB. I think "Our" should be the operative word on signage.

Show us our Gold!

Show us our Gold!

Show us our Gold!

Sun, 02/27/2011 - 18:22 | 1002274 Mr Pinnion
Mr Pinnion's picture

Most americans are selling their gold for cash.

What makes you think they would be shocked to learn their government had done the same?

You credit your fellow countrymen with too much intelligence.



Mon, 02/28/2011 - 07:26 | 1003391 GetZeeGold
GetZeeGold's picture


Let me see if I have this straight....the country is burning.....and the first major action is about gold?


......sounds about right.



Sun, 02/27/2011 - 15:12 | 1001883 Dr. Porkchop
Dr. Porkchop's picture

Since Mubarak has already stolen it all, I guess this law is timely.

Sun, 02/27/2011 - 17:55 | 1002202 pacu44
pacu44's picture

Did Mubarak steal it or did his puppet master?

Sun, 02/27/2011 - 15:11 | 1001885 jesse livermoore
jesse livermoore's picture

maybe he just "leased it"

Sun, 02/27/2011 - 15:27 | 1001920 SWRichmond
SWRichmond's picture

Best comment of the day!

Sun, 02/27/2011 - 16:26 | 1002045 PulauHantu29
PulauHantu29's picture


Sun, 02/27/2011 - 15:13 | 1001886 Zero Govt
Zero Govt's picture

Goldbugs Alert : scared of the US or EU Govts grabbing your Gold? Export your spangly stuff for safe storage in Egypt, they won't let it out.. sorted.

Sun, 02/27/2011 - 16:07 | 1002009 Pure Evil
Pure Evil's picture

Well, at least not until June 30.

Sun, 02/27/2011 - 18:22 | 1002277 Troll Magnet
Troll Magnet's picture

or you can just mail them to me and i'll "store" them for you guys for FREE!!!

storing your gold with me will be so safe that neither the government nor YOU will be able to find them (or me).  it's THAT safe. :)

Sun, 02/27/2011 - 15:13 | 1001887 prophet_banker
prophet_banker's picture

between this and the Royal Mint of Canada reporting difficulty sourcing silver, i'd say PM shortage headlines are right around the corner; though i think they can pave over the blow up in the paper market with more paper; for a while



Sun, 02/27/2011 - 17:12 | 1002133 Saxxon
Saxxon's picture

Bullish for gold.  The opposite of CB sales is restrictions.  New highs right soon.

Sun, 02/27/2011 - 15:13 | 1001888 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You can't export what you don't have.

Sun, 02/27/2011 - 15:13 | 1001889 Milton Waddams
Milton Waddams's picture

Another example of the state "preserving wealth"...

16.896 Sale or contractual operation of state−owned heating, cooling, and power plants. (1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state−owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3)

Sun, 02/27/2011 - 15:35 | 1001921 GoinFawr
GoinFawr's picture

Are you sure that's not just a nice translation of Ecuadorian legislation?

So when can I invest in privatizing breathable air? I mean once the public has built all the underlying infrastructure to support such an industry, that I can pick up for pennies on the dollar in a depressionary environment, of course... Heh, I imagine works of that scale would be way too expensive to manufacture privately.

Sun, 02/27/2011 - 15:15 | 1001892 disabledvet
disabledvet's picture

note to self:  "wheat" as a form of "currency" is a bad idea..."especially when in need of import" in order to it eaten?  Interestingly "M1A2 battle tanks" apparently aren't so bad...people even put flowers in them!  i'll need a bigger garage for starters.   Banker!  Banker!  Come hither!

Sun, 02/27/2011 - 15:16 | 1001897 traderjoe
traderjoe's picture

But, can't eat it...?!

Sun, 02/27/2011 - 15:21 | 1001908 midtowng
midtowng's picture

And you can't buy groceries with it. And its only worth what someone else will pay for it...oh yeah.

Sun, 02/27/2011 - 15:35 | 1001932 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

""But, can't eat it...?!""

""And you can't buy groceries with it. And its only worth what someone else will pay for it...oh yeah.""

In a month or two.....Billions of India, China and Asian citizens will be selling their gold for FOOD.

Canada's four Western Provinces...with a plethora of natural resources and only 12.5 million citizens, led by gateway city, Vancouver BC...

Sun, 02/27/2011 - 16:59 | 1002116 DoChenRollingBearing
DoChenRollingBearing's picture

Someone here at ZH yesterday made a good case for New Brunswick, as it is milder in climate than interior W. Canada and cheaper as well.  Cheap farmland.

Sun, 02/27/2011 - 15:19 | 1001901 Pseudo Anonym
Pseudo Anonym's picture

the WGC is long overdue in adjusting the Egyptian gold holdings from 75.6 tonnes to their real current value... far lower.

at least some will be left; unless the good ol' US of A invades egypt. Then it will be adjusted to zero, as the zionist usa is best known for plundering real assets of every nation it invades.

Sun, 02/27/2011 - 15:22 | 1001906 bugs_
bugs_'s picture

of course this wealth does not belong to individuals it belongs to the state, the new democratic paradise created in just 9 days!!!

Sun, 02/27/2011 - 15:23 | 1001910 Oh regional Indian
Oh regional Indian's picture

This is something I've always wondered about. if the world is balkanized to it's pre-globalized form, governments will be free to pass laws such as this, essentially leading to massive inter-country arbitrage and a very very unstable price for all commodities (PM's especially). india already has massive precedent for blocking trading, especially futures on essentials without notice. Investor eats his loss, force majure. Part of thsi end-game fascination. No idea what is coming tomorrow.


Sun, 02/27/2011 - 17:03 | 1002118 DoChenRollingBearing
DoChenRollingBearing's picture

Good observation ORI.

Such arbitrary trade restrictions have hurt India a lot in the past.  And that this kind of thing could become a much bigger problem in the future.

Me too re no idea what is coming tomorrow.  NAFC!

Sun, 02/27/2011 - 22:07 | 1002718 Hook Line and S...
Hook Line and Sphincter's picture

Not to be crude, but... I know exactly what's coming tomorrow. I have a date with Robo's avatar.

On 'a nuther' note, do we really want Ft Knox to be audited? Price of Au would likely launch skyward, but finding tungsten or nothing at all would force the gov to do things they elsewise wouldn't have actually sealing the borders so no one goes OUT for cap controls, and self-defeating house to house searches (with accompanied gun fire). This wouldn't be the case if it's existence was left unknown, where gov plausible denial is left intact, and only confiscation by means of 'paper gold' is prevalent.

Sun, 02/27/2011 - 15:34 | 1001931 asotavb
asotavb's picture

this article states that gold is wealth.  this is news to me and the rest of the msm as dollars are the only wealth we know.

Sun, 02/27/2011 - 18:20 | 1002272 New_Meat
New_Meat's picture

psst asotavb: don't let on that I told you this, but there are folks around here who are kinda' slow.  Be a sport and help 'em out.  Use some fake HTML, they won't know any better.  Use the tag </sarc> and they MIGHT pick up on it.

Good Luck!

- Ned

Sun, 02/27/2011 - 18:22 | 1002278 asotavb
asotavb's picture

haha /sarc ill remember that for next time.


Sun, 02/27/2011 - 15:37 | 1001938 apberusdisvet
apberusdisvet's picture

Since the price of tungsten has increased dramatically, I'm sure that there are bars of something at Ft Knox for any casual, non-assayed inspection.  So that's a dead end.  Sorry to break the hopium bubble.


Sun, 02/27/2011 - 15:40 | 1001941 Newager23
Newager23's picture

This is a major story. The fact that they are publicly stating that gold is a store of wealth is a tacit recognition that gold is money. The bottom line is that most investment advisors do not consider gold money or a hedge against inflation.

If you would have bought gold in 1971 at $35 it would be worth $1400 today. That is not an investment? So be it, you still can't invest in it with most (nearly all) 401(k) funds.

Why not? It is considered too risky. The irony is amazing. Investing in the stock market is risky, not gold. All gold has done is gone up for 10 straight years. You would think that the investment community would change their tune. But they haven't. My friend asked his investment advisor about gold and was told, "We don't invest in gold related assets." 

As more stories such as this (Egypt baning exports of gold) surface, people are going to wake up to the fact that physical gold is not a bad idea. Once this happens the mania phase will begin. It's not that far away.

When you consider that in 1980, 20% of stock investments were gold or silver related, and today the number is around 2%, you can see the potential for an explosive move into precious metal stocks.

When you consider that perhaps 1% of the public owns physical gold or silver in substantial quanty, the potential for shortages is enormous once a move to physical begins. Especially in silver.

I think Egypt and now Libya was the carnary in the gold mine. It was a big signal to buy.

Got gold?


Sun, 02/27/2011 - 16:04 | 1002002 DonutBoy
DonutBoy's picture

Hmmm...  Someone in Egypt thinks gold is wealth.  Let's see, the pyramids are 5000 years old and were filled with:

a) Paper Currency

b) Account Statement of Pharaoh's Special Drawing Rights

c) XXXX  (The word that cannot be typed...)


Mon, 02/28/2011 - 04:45 | 1003350 Overflow-admin
Overflow-admin's picture

d) IOUs

e) Silver??? (sorry, but the other word cannot be typed so I put this instead)

Sun, 02/27/2011 - 19:29 | 1002394 Saxxon
Saxxon's picture

Good points.  Perhaps around $2,000 per ounce (I give it 12 months) the Barrons and IBDs of the world will start questioning why gold is not more popular in the average, highly restricted 401(k) or IRA accounts (the great majority of which can't short either).

Then at $2500/oz. (late next year) there will be a loud clamor.

401(k) and managed IRAs are the aphids of the investment structure.

Sun, 02/27/2011 - 20:10 | 1002465 Peace is the x-axis
Peace is the x-axis's picture

"The fact that they are publicly stating that gold is a store of wealth is a tacit recognition that gold is money."

If “money” is ever to be made a servant of mankind, and not continue to be his master, then we must begin by taking great care to distinguish clearly between “money” as “store of value”, and “money” as “currency”.

It is through enforcing the use of "currency" that is also perceived to be a "store of value" - either due 'intrinsic' worth of the "currency" (ie, gold/silver coin), or by artificially-created perceptions (ie, offering interest on stored currency) - that TPTB control us.  Our socially-engineered false perceptions that "currency" should be a "store of value" is the means by which TPTB have positioned themselves to control the supply / ebb-flow of "money" in the system; thus, control the system itself.

Until we act to completely separate the "currency" from the "store of value" - and ensure that noone has the power to control either - then we will continue to be their slaves.

And we'd best hurry up about it, given what BoE's Mervyn King has suggested will be their next "solution" -


Mon, 02/28/2011 - 04:49 | 1003354 Overflow-admin
Overflow-admin's picture

+ 1'000'000'000'000 US Bernankes

Sun, 02/27/2011 - 22:18 | 1002761 Tedster
Tedster's picture

You know it's interesting you mention this. My view is that gold is money, and one can't "invest" in money because by definition an investment is something _other than money_ that provides a return - stocks that pay a dividend being a classic example.

Silver is interesting because it's use in dollars was about as popular with bankers as the various bailouts are with the public today - not very. Outside of the Old West, they didn't circulate much and piled up in banks by the millions, used as reserves. At times they were only legal tender in amounts up to five dollars. 16 to 1? Hardly.

Sun, 02/27/2011 - 22:29 | 1002793 gwar5
gwar5's picture

Try to get a self-directed IRA equivalent of teh 401K. Maybe they're available. Custodian holds physical PM.

Sun, 02/27/2011 - 15:41 | 1001943 SilverRhino
SilverRhino's picture

I wonder; why silver is flying so far under the radar that even the governments are leaving it alone at this point???

Sun, 02/27/2011 - 15:44 | 1001949 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Because it's not available in volume.

Sun, 02/27/2011 - 22:13 | 1002741 gwar5
gwar5's picture

China is accumulating.

Sun, 02/27/2011 - 15:46 | 1001951 SWRichmond
SWRichmond's picture

A central bank, plundered? 

Say it ain't so!

Sun, 02/27/2011 - 18:19 | 1002270 Vendetta
Vendetta's picture

maybe Egypt will be the first country to actually do something with their criminal bankers.

Sun, 02/27/2011 - 20:25 | 1002490 Temporalist
Temporalist's picture

See Iceland

Sun, 02/27/2011 - 20:56 | 1002557 New_Meat
New_Meat's picture

no viking descendents in Egypt

Sun, 02/27/2011 - 22:11 | 1002737 Hook Line and S...
Hook Line and Sphincter's picture

Perhaps not... the Tut, Ramses II, Thutmose, etc had red hair and white skin. 

Sun, 02/27/2011 - 15:48 | 1001959 Atomizer
Atomizer's picture


This is very bearish for gold/silver.

Tyler, do you think its time to explain how IMF SDR works?

For example..

January 2011

With effect from January 1, 2011, the IMF has determined that the four currencies that meet the selection criterion for inclusion in the SDR valuation basket will be assigned the following weights based on their roles in international trade and finance:

U.S. dollar 41.9 percent (compared with 44 percent at the 2005 review)

Euro 37.4 percent (compared with 34 percent at the 2005 review)

Pound sterling 11.3 percent (compared with 11 percent at the 2005 review)

Japanese yen 9.4 percent (compared with 11 percent at the 2005 review)

2/25/2011 SDR = 0.637118

  1. Ounce of Gold XAU: .0007099282403280441
    Ounce of Silver XAG: 0.02979971936389149

Help the ZH Peasants understand the larger picture. Thank you.

Sun, 02/27/2011 - 16:12 | 1002017 What_Me_Worry
What_Me_Worry's picture

This is not bearish for gold/silver.  A basket of fiat in no way will diminish the value of physical gold/silver.  Make the SDR worth whatever you want.  Until an SDR-like product encompasses a basket of physical assets that an SDR would be used for anyways, then it is as meaningful as the FRN itself.

Otherwise, why do you even need an SDR if it is nearly half FRN?  Only the Euro has any actual gold backing it and the ECB is doing everything in their power to screw that up, too.

OT: Silver eagle rolls going all weekend on Ebay for between $775-$800 a roll(roughly $39-$40 each)

Sun, 02/27/2011 - 16:18 | 1002023 akak
akak's picture

The SDR will be the last gasp of the corrupt and dying fiat monetary status-quo.  With the Euro on its deathbed, it is laughable to even discuss such a one-world fiat currency.

Let's see, I have the odious option of choosing to conduct business using dogshit, horseshit, pigshit or pidgeonshit as money.  I know what's better, let's lump them all together in one basket!  Yeah, that solves everything!

Sun, 02/27/2011 - 16:52 | 1002102 jomama
jomama's picture

awesome analogy

Sun, 02/27/2011 - 17:05 | 1002125 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1410

Good seeing you around again akak!

Sun, 02/27/2011 - 17:18 | 1002144 akak
akak's picture

You too DoChen!

Now where's that raccoon been hiding lately?

Sun, 02/27/2011 - 21:12 | 1002585 StychoKiller
StychoKiller's picture

So many garbage cans to pillage, so little time...:>D

Sun, 02/27/2011 - 22:16 | 1002759 Hook Line and S...
Hook Line and Sphincter's picture

You did it! I just decided to steal that analogy and use it in polite company. Thanks Akak.

Sun, 02/27/2011 - 17:25 | 1002156 DonutBoy
DonutBoy's picture


Jim Rickards on King World News predicts the same, the SDR is next.  It is the last.  In 2008 America turned the private debt into sovereign debt, and the ECB is turning sovereign debt into "regional" debt through sovereign bond purchases.  Next up is the global central bank, the IMF, re-liquifying everything with $100 trillion in new debt. But there's no one after that - no one to buy the SDR bonds and put their better credit rating on them.

I don't think they'll get there.  I think the fiat currency regime will collapse before they get an SDR bond market going.  If they do get there - it can only delay the inevitable.  It's incredibly immoral, to make the entire population of the globe slaves to a debt accrued before they were born.


Sun, 02/27/2011 - 17:32 | 1002166 akak
akak's picture

Excellent summation, Donut.

Sun, 02/27/2011 - 18:23 | 1002281 New_Meat
New_Meat's picture

HEY-pigshit is the BEST!

Sun, 02/27/2011 - 16:35 | 1002063 Atomizer
Atomizer's picture

This is not bearish for gold/silver.  A basket of fiat in no way will diminish the value of physical gold/silver.  Make the SDR worth whatever you want.  Until an SDR-like product encompasses a basket of physical assets that an SDR would be used for anyways, then it is as meaningful as the FRN itself.


Zzzzzzzzzzz, Zzzzzzzzzzz, Zzzzzzzzzzz

Sun, 02/27/2011 - 16:43 | 1002081 What_Me_Worry
What_Me_Worry's picture

The flash crash is your rebuttal as to why the SDR is bearish for physical gold and silver?

Shouldn't that actually weaken your original hypothesis?

Sun, 02/27/2011 - 18:46 | 1002331 Atomizer
Atomizer's picture

The flash crash is your rebuttal as to why the SDR is bearish for physical gold and silver?

Shouldn't that actually weaken your original hypothesis?

So what is my original Hypothesis? Mind laying the grand plan? Shed light on why gold/silver will not explode.

We all are waiting with baited breath, share your theories.


Sun, 02/27/2011 - 16:23 | 1002036 tallystick
tallystick's picture

OK, so an SDR is around 1g of silver.

Sun, 02/27/2011 - 16:28 | 1002048 DeltaFunctionToronto
DeltaFunctionToronto's picture

SDR issuance tied to gold reserves in ratio terms, coming to a central bank near you.

Sun, 02/27/2011 - 17:28 | 1002159 DonutBoy
DonutBoy's picture

As things stand that's extremely unlikely.  The current IMF-types reject gold in any form as part of the SDR valuation.  I think to admit there needs to be a reserve ratio of gold is to admit the fiat currency era is already over.

Sun, 02/27/2011 - 22:05 | 1002721 gwar5
gwar5's picture

The Chinese may insist on gold being in the basket.

I think the kids are fighting over that right now.

Sun, 02/27/2011 - 17:42 | 1002175 topcallingtroll
topcallingtroll's picture


Central banks would willngly tighten money supplies, raise interest rates, and force a depression before giving up the flexibility of fiat. You want to make dollars scarce and valuable? A depression will do that quite nicely.

Even in the unlikely result of hyperinflation and legal tender repudiation, the rejected currency was always replaced by another fiat currency. I cant think of any twentieth century examples of fiat repudiation leading to a gold standard. The brief return of a gold standard in the UK was not due to fiat repudiation. In fact the gold standard was quickly repudiated.

Sun, 02/27/2011 - 18:27 | 1002283 akak
akak's picture

I think you need to extend your historical horizons a bit --- both China and the newly-independent United States both totally repudiated fiat money, among many others.  It is only in the benighted last century, the age of worldwide central banking, that such has not happened ---- yet.  But it will, my friend, count on it, because it must, or civilization dies.

Sun, 02/27/2011 - 19:25 | 1002388 High Plains Drifter
High Plains Drifter's picture

Civilization as we have known it will die.  Those are the cards in the deck. I don't see any big movment in this country to change things. The name of the game is now, get along just get along, and perhaps it aways has been that way

Sun, 02/27/2011 - 21:16 | 1002589 StychoKiller
StychoKiller's picture

Standing in line for the abbatoir is NOT my idea of getting along...:>(

Sun, 02/27/2011 - 16:06 | 1002005 10044
10044's picture

you guys following the "Wynter Benton" saga?? s/he says tomorrow will be the day to bust the comex, target of $37 silver (;

also tomorrow FINRA 4320 goes into effect (


i'm surprised Tyler didn't pick up on either one...

Sun, 02/27/2011 - 19:37 | 1002404 TheGoodDoctor
TheGoodDoctor's picture

Yes. I would like scenario based explanations of the information posted at Jim Sinclair's site. Please and thank you for an article here explaining this.

Sun, 02/27/2011 - 16:06 | 1002008 akak
akak's picture

Funny how the "useless metal" finds itself embroiled in legal strictures during a time of chaos such as this.  I thought gold was supposed to be irrelevant?

Or maybe JohnnyBravo convinced the Egyptian Central Bank that they were going to lose just too much on the buy/sell ratio.

Sun, 02/27/2011 - 17:07 | 1002128 DoChenRollingBearing
DoChenRollingBearing's picture

That would be "Math Man" to you now, sir.

Sun, 02/27/2011 - 17:42 | 1002181 akak
akak's picture

Oh yeah, I forgot about Moth Man.  Or is it Meth Man?

Intellectually, he was more like Rain Man.

Sun, 02/27/2011 - 16:23 | 1002035 sabra1
sabra1's picture

my mummy always looked good in gold!

Sun, 02/27/2011 - 16:43 | 1002082 akak
akak's picture

Rameses it up your Isis!

Sun, 02/27/2011 - 21:18 | 1002598 StychoKiller
StychoKiller's picture

Tutankhamen isn't famous for his linen! :>D

Sun, 02/27/2011 - 16:35 | 1002062 Arkadaba
Arkadaba's picture

Good analysis of Eygptian situation in particular and 'neo-liberalist" policies in general:

Sun, 02/27/2011 - 16:47 | 1002091 carbonmutant
carbonmutant's picture

 I wonder if the border guards a capable of analyzing gold alloys...

Sun, 02/27/2011 - 18:21 | 1002273 Vendetta
Vendetta's picture

No, but they will look the other way if you offer them a gold coin. I'm sure


Sun, 02/27/2011 - 16:51 | 1002096 Misean
Misean's picture

Talk about closing the barn doors after the horses have left.

Sun, 02/27/2011 - 16:57 | 1002114 americanspirit
americanspirit's picture

Gold fillings will be removed before you board the aircraft

Sun, 02/27/2011 - 17:20 | 1002148 saulysw
saulysw's picture

Yes, I was thinking about that too. Does this mean no wedding rings when flying?

Re bearish/bullish : I think that every time there is news about gold it makes the sleeping public more aware. Drawing attention to it is bullish. Adding restrictions to it's ownership is bearish. On balance, I would see this as neutral.

Final thought: is this the start of FOFOAs "freegold"? Expect an unknown physical gold price before it's revalued multiples higher as an international store of value function. Hmmmmm....

Sun, 02/27/2011 - 17:27 | 1002158 yabyum
yabyum's picture

Thats going to leave a mark!

Sun, 02/27/2011 - 16:58 | 1002115 Bagbalm
Bagbalm's picture

Note: Jewelry too. If you are a tourist with a wedding ring you can't take it home?

Will they do the same here when (not if) the get around to confiscation?

Sun, 02/27/2011 - 17:23 | 1002152 saulysw
saulysw's picture

Snap on the rings idea. Precious!!

Sun, 02/27/2011 - 17:15 | 1002139 Creed
Creed's picture

"This decision..., is to preserve the country's wealth until the situation stabilises,"



wait a damn minute here.....


how can a lowly COMMODITY preserve an entire countrys wealth? hmmm...say it ain't so Wall Street boys, me conviction is wavering a tad.

Sun, 02/27/2011 - 17:18 | 1002142 JimboJammer
JimboJammer's picture

They  won't  do  that  in  the  USA

Fort  Knox  might  just  be  empty..

Sun, 02/27/2011 - 18:07 | 1002230 Cheyenne
Cheyenne's picture

Gotta love the Sunday Night Special to the head of a fiat.

Sun, 02/27/2011 - 18:09 | 1002235 digalert
digalert's picture

Egypt implements new Oil 4 Gold policy.

Sun, 02/27/2011 - 18:24 | 1002280 Vendetta
Vendetta's picture

However, GLD and SLV ETF shares may be freely purchased or sold to anyone in or out of the country in any quantity.

Sun, 02/27/2011 - 18:26 | 1002285 tony bonn
tony bonn's picture

so let's can't eat or drink gold - unless moses is forcing you to drink the golden calf - and you can't shoot it from rifles, and yet the egyptian government is banning its export....hmmm....where o where has the fucktarded gold analyst gone, oh where o where has he gone?

Sun, 02/27/2011 - 18:30 | 1002286 Winston Smith 2009
Winston Smith 2009's picture

Yeah, I'm sure this ban on exportation includes the robber class still in control there. And, big surprise, Mubarak is probably still running the show there by remote control and his thugs certainly are.  A current interview with someone on the scene:

Meet the new boss, same as the old boss.



Sun, 02/27/2011 - 18:37 | 1002309 JPMorgan
JPMorgan's picture

I love how all these assholes in the middle east are trying to skip town with their countries gold reserves.

Didn't someone tell these guy's that gold is just a barbaric relic.

Just goes to show that when the shit hits the fan gold is the real money that is universally accepted everywhere.

Not worthless fiat paper promises of insolvent governments.

Sun, 02/27/2011 - 18:38 | 1002315 Calmyourself
Calmyourself's picture

They will be needing something to eat.  May as well be gold that archaic wreck is good for nothing else.

Sun, 02/27/2011 - 18:38 | 1002316 Calmyourself
Calmyourself's picture

fat finger..of gold..

Sun, 02/27/2011 - 18:47 | 1002327 AUD
AUD's picture

During the Asian Financial Crisis (1997 onwards ) the Thai government encouraged citizens to hand over their gold jewellery to be melted down for central bank reserves.

Incredibly, people were dumb enough to do it. I guess just as in Egypt people seem to be dumb enough to believe that handing power to the same military bureaucrat who has helped keep them under the thumb for so many years is going to make a difference.


Sun, 02/27/2011 - 18:45 | 1002329 Xibalba
Xibalba's picture

Egypt has a history of having it's gold plundered.  I bet that gold is across the Red Sea by now, and the chariots are a long long way away.  

Sun, 02/27/2011 - 19:02 | 1002340 High Plains Drifter
High Plains Drifter's picture

What I can't figure out is , if things were so bad in Egypt, if they were slaves , and if they were so many (estimated at about 1.5 million or so) then why did they stay there 400 years?  Also it has been stated that they took everything in Egypt that was not nailed down and fled across dry land through the Red Sea and when they had crossed the Egyptian army that was pursuing them drowned. So let me get this straight. They left Egypt in a rush after stealing a lot of stuff and they were heavily weighed down with goods etc and then they cross the red sea on dry land to Sinai and then to Canaan. Wait a minute. Point of order here. Egypt in those days extended all the way to Tyre , did it not. One would assume that the Egyptian garrisons in Canaan would have been pissed off just a tad to hear of their comrades being killed in the Red Sea crossing and perhaps they would have decided to shall we say, harass God's chosen in Canaan, much less Sinai?  Hmmmm ???   Maybe I should ask John Hagee?


Dagnabbit, HPD will you quit talking about those people for once???  Ha ha ha

Sun, 02/27/2011 - 19:10 | 1002364 akak
akak's picture

Hilarious!  But of course one gets hopelessly bogged down in trying to analyze the "truth" of mythology and fairy tales.

Oh, and you forgot about that magical talking Ark of the Covenant, which just happened to disappear from Jerusalem with nary a whisper about it in the Bible.

Sun, 02/27/2011 - 19:34 | 1002401 High Plains Drifter
High Plains Drifter's picture

Some fools are now saying that Noah had dinasaurs on the boat he built, I kid you not. The modern thinking on this is that the carbon dating system we now have is bogus because the flood washed out some of the atmosphere etc. I keep thinking about that ship that Noah built floating around and having a pair of Brachiosaurus's necks and heads sticking out of the top of that boat etc. Oh well.

Sun, 02/27/2011 - 19:47 | 1002432 akak
akak's picture

Not to mention that just two of every species known to exist would more than fill  the ark beyond its Biblically-stated volume, not to mention the room needed for food, movement, etc.  Not to mention that any species reduced to two members is already doomed to extinction due to genetic inbreeding, not to mention that no wooden vessel of such dimensions has ever been built, for the good reason that no such wooden vessel could have possibly been seaworthy due to the inherent mechanical qualities of even the strongest wood ....

Sun, 02/27/2011 - 21:24 | 1002611 StychoKiller
StychoKiller's picture

Paul Bunyan and his blue ox Babe gave Noah a helping hand...and a very large axe!

Sun, 02/27/2011 - 22:10 | 1002734 trav7777
trav7777's picture

nevermind that certain species indigenous to places Noah couldn't sail would not have gotten there.  Nor that there would be no surviving freshwater species.  Most insects also gone.

I still can't get a cogent explanation for where the water came from either.  Or where it "receded" to.

Mon, 02/28/2011 - 03:47 | 1003325 Boxed Merlot
Boxed Merlot's picture

"Pre-deluvian" earth may have been quite different than the earth after the flood. Some contend the rainbow for instance, was not visable from the earth's surface before the flood because the radiant energy was filtered by layers of waters above the planet that fell to the face of the earth in the first "rain".

These additional waters may have subsequently gathered at the polar caps in the form of ice that may well have been non existent in the "pre-deluvian" time frame. Aging processes for beings during that period are listed as lasting much longer before the flood and are recorded in the biblical account as diminishing afterward.

If humans are said to live for centuries, it's easy to assume many animals may have too. Aging mammals, reptiles and other creatures would have therefore grown / developed into quite different specimens than their cousins seen in todays accelerated lifespans.

Of course pre-history is open for conjecture but the biblical account as the consummate foundation of the Mosaic, Abrahamic and subsequent Christian belief systems at least has the virtue of a monolithic and single point of origin much like even the most advanced scientific explanations as to our personal beginnings.

Just a few thoughts.

Sun, 02/27/2011 - 19:45 | 1002428 High Plains Drifter
High Plains Drifter's picture

By the way, make no mistake about it. They have been feverously searching for the ark of the covenant,  for a very long time and have been unable to find it. But have no fear, if they can't find it, then some Israeli professor will make one up and then say it is the original, even though this is fraudulent. But what the hey, its for a good cause, isn't it? I mean, its not like this has not been done before. Also strangest things, they have not been able to find any artifacts from the David and Solomon Kingdoms when they can find artifacts for various other kingdoms around here and there such as Petra etc. Weird is all I can say. And yet, the American army goes into Iraq, probably the birthplace of Adamic man, and utterly destroys and nukes (with DU)   the place so that no one will ever be able to live there again and we call ourselves Christian people. What a strange world we live in now.

Sun, 02/27/2011 - 18:46 | 1002333 High Plains Drifter
High Plains Drifter's picture

but but but,  gold doesn't have anything to do with currency ????  does it??????

Sun, 02/27/2011 - 19:51 | 1002437 UglyPatheticPauper
UglyPatheticPauper's picture

Nothing to see here!  Gold is a BABARIC RELIC!! (sarcasm off)

Sun, 02/27/2011 - 19:52 | 1002438 UglyPatheticPauper
UglyPatheticPauper's picture

Nothing to see here!  Gold is a BABARIC RELIC!! (sarcasm off)

Sun, 02/27/2011 - 20:13 | 1002470 PaperWillBurn
PaperWillBurn's picture

Cat exit bag

Sun, 02/27/2011 - 20:20 | 1002481 Bansters-in-my-...
Bansters-in-my- feces's picture

Visa has a "Gold" card.does that count?

Fools Gold.

Platinum too.

Sun, 02/27/2011 - 20:31 | 1002507 gwar5
gwar5's picture

The Egyptian TSA is on it.

BTW, pre-revolution, did muslim countries pat down their own people, or did they figure they were immune?

Sun, 02/27/2011 - 21:07 | 1002572 mogul rider
mogul rider's picture

Send to Mogul Rider @ Canada.


I'll hold it for ya

I promise

Sun, 02/27/2011 - 21:10 | 1002580 mogul rider
mogul rider's picture

Attention All Egyptians.

I am a Canadian who is trustworthy as all get out. Just send all your gold to me through any back channel you choose.


Unlike you Egyptians and Nigerians who tried to fuck us up with fraudulant scams every second day  I'll ensure that it kept safe.

Yup Really



Sun, 02/27/2011 - 21:26 | 1002622 StychoKiller
StychoKiller's picture

From a different thread:


My American Friend,

My father, a well known North African dictator, needs to move a large shipment of cash and Precious Metals out of the country but, unfortunately, he has many enemies who would seize his fortune. However, were his vast wealth to be deposited in the account of an average American it would escape the notice of banking regulators and the Commerce Department's list of specially designated foreign nationals.  We would be very generous to the American citizen who would assist us in transferring this wealth to your bank account.  Please help us and send us your account number.  You will be rewarded!

Sun, 02/27/2011 - 22:43 | 1002829 Crumbles
Crumbles's picture

Gosh, man - that would be great.  My account is at the 14th National Bank of Zimbabwe, West Street Branch in New York City, and is in my name with the account #1000-6969-666.  Be sure to notify me after the funds have been deposited by calling 212 902-0300 and ask for Dick McNeil.  All my best and THANKS so very much.

Sun, 02/27/2011 - 23:22 | 1002899 mogul rider
mogul rider's picture

No wait actually I'll send you USD so you can give zimbabwean. It's worth more.




Sun, 02/27/2011 - 23:23 | 1002907 mogul rider
mogul rider's picture

When I get these you know I'm not sure if I feel sad or pissed off.

The world is just so fucked up, bring on the greatest depression and get this shit over with so we can rebuild.


Again just saying

Sun, 02/27/2011 - 21:53 | 1002671 bunkermeatheadp...
bunkermeatheadprogeny's picture

Reminds me of post-apatheid South Africa.

Sun, 02/27/2011 - 22:13 | 1002745 Yen Cross
Yen Cross's picture

Amazing. Rape your constituents and send the U.N. a bill from some private Island, in the Gulf of Carpentaria. Gold is heavy and edible.

Sun, 02/27/2011 - 23:49 | 1002960 Bastiat
Bastiat's picture

I mean, hey, they've got a thing for barbaric relics.

Mon, 02/28/2011 - 05:58 | 1003372 Common_Cents22
Common_Cents22's picture

Welcome to the hotel Cairo

You can check out any time you like

but your gold may never leave!

Do NOT follow this link or you will be banned from the site!