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The European Gold Confiscation Scheme Unfolds: European Parliament Approves Use Of Gold As Collateral

Tyler Durden's picture




 

Wonder why Europe is pressing so hard for Greece (and soon the other PIIGS) to collateralize its pre-petition loans on a Debtor in Possession basis? Here is your answer: "Yesterday’s unanimous agreement by the European Parliament’s Committee
on Economic and Monetary Affairs (ECON) to allow central counterparties
to accept gold as collateral, under the European Market Infrastructure
Regulation (EMIR), is further recognition of gold’s growing relevance as
a high quality liquid asset. This vote reinforces market demand for a greater choice of assets that can be used as collateral to meet margin liabilities." Luckily for Greece, it has 111.5 tons of gold in storage (somewhere at the New York Fed most likely). Looking down the road, Portugal has 382.5 tons, Spain 281.6, and Italy leads the pack with 2,451.8 tons.

Complete press release:

The Economic and Monetary Affairs Committee of the European Parliament has approved gold to be used as collateral confirming its status as a high-quality liquid asset

Yesterday’s unanimous agreement by the European Parliament’s Committee
on Economic and Monetary Affairs (ECON) to allow central counterparties
to accept gold as collateral, under the European Market Infrastructure
Regulation (EMIR), is further recognition of gold’s growing relevance as
a high quality liquid asset.

This vote reinforces market demand for a greater choice of assets that can be used as collateral to meet margin liabilities.

Natalie Dempster, Director of Government Affairs at the World Gold Council said:

“It is very significant that the European Parliament is putting its
weight behind the argument that the unique characteristics of gold make
it an ideal form of high quality liquid collateral.

“We now look forward to the European Parliament and Council of the
European Union upholding the inclusion of gold in the next stage of
negotiations around EMIR which will now take place after the July
plenary vote. The ratification would mark a significant step forward in
redefining what constitutes a highly liquid asset under the Capital
Requirements IV Directive, due in the coming month, from the European
Commission.”

Market demand for gold to be used as a high quality liquid asset and as
collateral has been building for some time. In late 2010, ICE Clear
Europe, a leading European derivatives clearing house, became the first
clearing house in Europe to accept gold as collateral. In February 2011,
JP Morgan became the first bank to accept gold bullion as collateral
via its tri-party collateral management arm. Exchanges across the world,
such as Chicago Mercantile Exchange, are now accepting gold as
collateral for certain trades and London-based clearing house LCH
Clearnet has said that it also plans to start accepting gold as
collateral later this year, subject to regulatory approval.

The World Gold Council has examined this trend and has defined the
characteristics that make gold an excellent form of collateral in its
study “Gold as a source of collateral”. The report includes a case study
on ICE Clear Europe, explaining why the central counterparty clearing
house has started to accept gold as collateral and how this operates in
practice.

“As regulators, from G20 countries, demand that more OTC trading is
cleared on exchanges and with the ongoing world economic difficulties
further eroding the credit worthiness of other forms of collateral, we
expect to see increasing demand by clearing houses, exchanges and
investment banks to use gold as collateral,” says Natalie Dempster.

 

In order to legitimize this precursor to full blown gold sequestration (on a purely voluntary basis of course, as credit money is received while physical PMs are pledged), the WGC has even put together this pretty presentation:


gold as collateral

 

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Wed, 05/25/2011 - 07:10 | 1308273 stopthenewworldorder
stopthenewworldorder's picture

scum.  go greece - default, leave em high and dry and back the new drachma with your reserves

Wed, 05/25/2011 - 07:19 | 1308281 agent default
agent default's picture

Greek reserves have already been pleged as collateral with the first loan treaty and greek gold is held at UBS Switzerland and the Bank of England.  So much for that idea.

Wed, 05/25/2011 - 07:30 | 1308306 rsi1
rsi1's picture

In any case, 111.5 tones of gold are only 3.7bn EUR at 1085EUR/ounce.. not much for a 300+bn debt..

Wed, 05/25/2011 - 07:49 | 1308341 Urban Redneck
Urban Redneck's picture

Divide US debt by US tons of gold (or tungsten).  You don't even have into include the trillions of GSE debt, or 1 the billion of Egyptian debt, or the repayments to federal pensions currently being plundered, JUST THE 14T debt ceiling figure.

Wed, 05/25/2011 - 08:01 | 1308367 Sean7k
Sean7k's picture

Prescisely, you don't price gold in euros- you price gold in total debt. Total Euro zone debt into total gold. 

This may be the beginning of how to create a single currency. How do you go back to the Drachma (or any other currency) with nothing to back it?

Wed, 05/25/2011 - 09:18 | 1308555 Cole Younger
Cole Younger's picture

There is nothing backing any currency for any nation other than a promise to pay. I suspect they want the gold as collateral so that no country can go back to a gols standard. A gold standard would make most if not all currencies worthless.

Wed, 05/25/2011 - 09:37 | 1308621 F. Beard
F. Beard's picture

There is nothing backing any currency for any nation other than a promise to pay.

Pay what?

Actually, fiat is backed by the government's promise to accept it for taxes.

Wed, 05/25/2011 - 13:45 | 1309672 stephenwv
stephenwv's picture

Why not use housing as collateral?  Can any one say Gold bubble?

The central banks print money backed by no assets or principle that is at risk, and charge interest on that money to the sovereign nations or banks that receive it. If the debt to the central banks are defaulted on, how does anyone lose any assets, principle, value, etc? If the sovereign nations did the printing instead, the sovereign nations' tax payers would not have to pay interest. Go figure.  Think silver certificates not federal reserve notes.  JFK recognized this and issued several billion in silver certificates before his assassination.  LBJ stopped that practice which has never been continued since.

Wed, 05/25/2011 - 14:49 | 1309883 cranky-old-geezer
cranky-old-geezer's picture

There is nothing backing any currency for any nation other than a promise to pay.

Pay what?

There's no promise to pay anything.

These currencies operate purely on people's confidence in them. That's it.  Just confidence.

Wed, 05/25/2011 - 07:43 | 1308329 DogSlime
DogSlime's picture

Why in Heaven's name would they allow their reserve to be stored in another country?  This is obscene.  They're going to bleed Greece dry before it defualts.  They should default right now and to hell with the ECB and banking criminals - fuck 'em all.

Wed, 05/25/2011 - 08:59 | 1308509 ouchtouch
ouchtouch's picture

There used to be this thing called the USSR that had lots of tanks.  That is why Europe's gold moved to NYC.

Wed, 05/25/2011 - 13:51 | 1309701 stephenwv
stephenwv's picture

The central banks print money out of thin air with no assets at risk, and lend it to banks and nations.  If that debt is nullified/defaulted on, how can there be any losses?  There was nothing there in the first place to lose.

 

Wed, 05/25/2011 - 09:05 | 1308520 TheFourthStooge-ing
TheFourthStooge-ing's picture

Bleeding Greece dry before it defaults has been the plan of the banking scum all along. Loot the country of all assets and property until the banking scum own everything and the country's economy is a lifeless husk, let it default, and then move in with "humanitarian" loans and credit in order to make permanent debt slaves of every citizen and their descendants.

This is the game plan for pretty much every country on the planet. The banking scum consider themselves above such quaint notions as governments and nations, and thus have allegiance to none.

 

Wed, 05/25/2011 - 10:20 | 1308851 tarsubil
tarsubil's picture

Do you ever wonder why? Why do you want so much power? What are you going to do with it? So many of the elite (even if they are low on the great totem pole in elitistan) can't even get a date. Is this all so they can do what they want with a maid without any consequence?

Wed, 05/25/2011 - 10:43 | 1308928 CrazyCooter
CrazyCooter's picture

The same reason obese people overeat?

The same reason most men will oggle a beautiful women, even if covertly?

People have lots of behaviors that are "baked in". The spectrum of impulses is so broad that there is always a few nut jobs running around with the right recipe to survive what nature might toss their way.

This continues until the minority is tossed out on its ass or used for lamppost decorations  on Christmas.

Regards,

Cooter

 

Wed, 05/25/2011 - 10:53 | 1308981 tarsubil
tarsubil's picture

Hey, I oggle women covertly and overtly. But I'm very practical when I say, I would not want a bunch of girlfriends. One wife is enough. Although, I wouldn't mind a second one to help with chores. Still, these people seem to lack that practical aspect. What is the point of having a 20K sq ft house with a small family or no kids? Really? It would just end up being a pain in the derriere. The local hill billy who lives in a small house and fishes all weekend while rolling smoke seems much more content. These elite people are supposedly so smart yet their lives really suck when you look at them.

Wed, 05/25/2011 - 14:13 | 1309762 akak
akak's picture

A salient and pithy observation.  I have often wondered the same things myself about the so-called "elite", most of whom are just pathetic sociopaths or psychopaths with a gaping hole where their soul should be.

Wed, 05/25/2011 - 11:26 | 1309122 Mec-sick-o
Mec-sick-o's picture

Resistance is futile...

Wed, 05/25/2011 - 07:47 | 1308333 Weisbrot
Weisbrot's picture

 

Gold backed money ?  Gold as money ??

What will they think of next....

 

 

Wed, 05/25/2011 - 10:28 | 1308870 stopthenewworldorder
stopthenewworldorder's picture

no.  some greek gold reserves have been.  not all by any means.

Wed, 05/25/2011 - 12:40 | 1309447 silberblick
silberblick's picture

Click below to see a graphic illustration of the bankster's dirty hierarchy of needs:

http://thesilvergoldhedge.blogspot.com/2011/05/banksters-dirty-hierarchy...

 

Wed, 05/25/2011 - 08:23 | 1308394 Miss Expectations
Miss Expectations's picture

I'd love to see Greek gold dracmas...love the owl.

http://www.claseshistoria.com/bilingue/1eso/greece/images/dracma.jpg

Wed, 05/25/2011 - 09:13 | 1308548 Apeman
Apeman's picture

Omg, look at those eyes. Clearly proof of ancient astronauts visiting earth. I knew it!

Wed, 05/25/2011 - 07:13 | 1308274 The Axe
The Axe's picture

I have the sense that Germany is going to force some of the pigs to sell some of their gold holdings in a attempt to strengthen their sovereign balance sheets..

Wed, 05/25/2011 - 07:19 | 1308283 nathan1234
nathan1234's picture

It's madness to pay back these crooked banksters. Greeks, please ask them to climb the alps and jump off instead.

And please go back to the drachma. The globalisation was just a way of taking away all your culture, your heritage and your honor. It's time the clock was turned  backwards.

Wed, 05/25/2011 - 07:39 | 1308324 agent default
agent default's picture

The alps?  I don't think the swiss are involved in this in any way.

Wed, 05/25/2011 - 07:56 | 1308354 Bob
Bob's picture

Haven't traveled Europe?  See Alps, Bavarian, Autrian, French, Italian. 

Wed, 05/25/2011 - 07:17 | 1308285 entendance
entendance's picture

Madame LaGarde,the former McKinsey & Co. partner? 0 Credibily
French Finance Minister Christine Lagarde formally enters race to be next IMF chief

May 25, 2011: the last eulogy of mr.bean-draghi coming from Bloomberg

http://www.entendance.com/forums/viewtopic.php?f=5&t=762&p=17194#p17194

Wed, 05/25/2011 - 07:21 | 1308290 JimBobOMG
JimBobOMG's picture

Wow! 2451 tons! Lucky them.

Wed, 05/25/2011 - 07:53 | 1308346 old naughty
old naughty's picture

In USD term, that means they have about 120B for collateral while Spain has about 9B (pitiful) unless already pledged like Portugal (worth about 12B).

Your guess is as good as mine if it will go higher short term?

Wed, 05/25/2011 - 13:58 | 1309715 stephenwv
stephenwv's picture

Why not use housing as collateral?  Can any one say gold bubble?

Wed, 05/25/2011 - 07:26 | 1308299 Ivanof
Ivanof's picture

Interesting... but 111,5 ton of gold are just nearly 60 mln € ....  and for Italy 2451 ton are 1.3 bil €

How this could help in multi billion debt ?

Wed, 05/25/2011 - 07:30 | 1308304 Reptil
Reptil's picture

So, this is an indication of what will happen (most likely) in the near future.

To value gold higher before confiscation is less profitable than to value it after....

 

Wed, 05/25/2011 - 13:57 | 1309724 stephenwv
stephenwv's picture

think housing mortgage collateral CDO bubble.  POP!

Wed, 05/25/2011 - 07:29 | 1308309 rsi1
rsi1's picture

111.5 tones are 3.7bn eur.

Wed, 05/25/2011 - 07:34 | 1308314 Urban Redneck
Urban Redneck's picture

111,5 tons x

1000 kg/ton x

34.907,00 euro/kg

3.892.130.500,00 euro at current spot.

However, based on 1974 US borrowing capacity gold price is over USD 5000/oz (instead of 1525).

Wed, 05/25/2011 - 07:41 | 1308326 GoldFinch42
GoldFinch42's picture

2451 tons is 85 bil €, not 1.3

Wed, 05/25/2011 - 07:45 | 1308331 Ivanof
Ivanof's picture

My mistake....  anyway 85 bil vs 1800 bil € of debt (for Italy) it's "nothing".... or... gold have to go to 15000$....?

Wed, 05/25/2011 - 07:24 | 1308301 Urban Redneck
Urban Redneck's picture

Gold used to priced in terms of borrowing capacity.  How many Euro/oz are they offering?  I'm guessing a whole lot more than the current 1085 spot price.

Wed, 05/25/2011 - 11:19 | 1309095 Ratscam
Ratscam's picture

Update

Thursday will be the 4th week after I ordered physical delivery on JBSICA.

There is some sot of internal conflicts who delivers the silver, wether UBS or JB.

Next timeline given: end of next week.

Wed, 05/25/2011 - 11:55 | 1309267 Urban Redneck
Urban Redneck's picture

Thanks, the ever recurring "your papers must be in order" comedy/delay routine is only bearable when there is a straightforwardsolution.  4 weeks is not reassuring.  I'm think of switching to ZSIL, but I need to figure out the tax implications first.  Since I have a US passport anything with my name on it has to stay at Die Post so the IRS can suck my dick if they don't like my annual disclosures.

I really hope the Sanford & Son routine they are putting you through is just because they lack both the experience and desire to execute something that they don't make money on.

Wed, 05/25/2011 - 12:40 | 1309446 Ratscam
Ratscam's picture

Since JBSICA is quanto hedged and subject to 8% VAT, it will be interesting to see what date they will use for the transaction. To me it looks like another nice threat of a law suit.

ZSIL is not USD hedged. Buying a security should not show up the records of the IRS. Then again UBS and CS gave all transaction information with names of pre and post 911 to homeland security. And this is first hand info from UBS and even publicly admitted by CS!

Wed, 05/25/2011 - 07:28 | 1308302 sabra1
sabra1's picture

if all this gold is held in new york, it ain't there!

Wed, 05/25/2011 - 07:28 | 1308308 THE DORK OF CORK
THE DORK OF CORK's picture

They won't get much more Gold out of that slut Hibernia - she had a small amount of 11+ tons back in 1990 but now has something like 5 tons.

Shes spent.

Wed, 05/25/2011 - 07:29 | 1308311 Azannoth
Azannoth's picture

Any1 pledging gold as collateral at current prices must be insane, maybe north of 50k an ounce it would make some sense

Wed, 05/25/2011 - 07:31 | 1308316 ABG LINE
ABG LINE's picture

--)-)@

To my Gold Bug friends. :-)

 

Wed, 05/25/2011 - 07:39 | 1308322 cheesewizz
cheesewizz's picture

 After all there gold is gone, The olive oil standard?

Just as stopthenewworldorder said,  "default, leave em high and dry and back the new drachma with your reserves"

 

 

 

Wed, 05/25/2011 - 07:46 | 1308334 agent default
agent default's picture

During the Weimar hyperinflation, every farmer was printing his own currency.  I have seen some of these notes pledging to pay the holder 6 eggs or a pound of cheese etc.  What makes you think that today's fiat, debt backed currency is in any way superior to currency backed by something physical, even if the physical is a soft commodity? 

I prefer the olive standard to the Ben and Timmy buckets of ink standard we have today.

 

Wed, 05/25/2011 - 07:55 | 1308350 Tito Gobbilicious C
Tito Gobbilicious C's picture

Bankerwangs in the blender, bitchaz.....leave 'em high 'n dry, leave 'em swinging low, over a cesspool of their shite, with nowhere else to go. Send 'em to the quarries, in Mackie D's or Bugger Thing, so's they can reminisce together, 'bout the ways they stole the bling. Bankerwangs in the blender, let 'em swing so high, that when the rope parts company, their weight will make 'em die.

 

Precious, bitchez (used without permission to say "bitchez.")

Wed, 05/25/2011 - 07:41 | 1308327 Robslob
Robslob's picture

Really...using gold as money is OK now?

Remember when?

Dutch regulator to pension fund: dump your gold!

http://www.efinancialnews.com/story/2011-02-11/dutch-pension-fund-gold-r...


Wed, 05/25/2011 - 09:05 | 1308518 A_MacLaren
A_MacLaren's picture

Ah, yes.  But there's a difference without a distinction.

They will accept your gold as collateral for their fiat.

You are not permitted to hedge/invest/speculate using gold against their fiat.

 

Wed, 05/25/2011 - 14:25 | 1309808 Vendetta
Vendetta's picture

+47

Wed, 05/25/2011 - 07:40 | 1308328 magpie
magpie's picture

Good Morning Vietnam, uh Gold Standard.

Wed, 05/25/2011 - 07:44 | 1308330 Azannoth
Azannoth's picture

I've been wondering, why isn't money backed by trees in a forest?!? I mean money is paper, papers comes from trees so it all makes sense, no ? Too bad Greece has such a dry climate and not too many forests, but It would be so comical if the Greek PM came out and said 'We will pledge 10km(2) of out national forests to cover 10B euro loan to cover the cost of printing the loan' that wold be fun!

Wed, 05/25/2011 - 07:47 | 1308342 Tito Gobbilicious C
Tito Gobbilicious C's picture

Read your Plato. They had denuded (clearcut) all of their trees by the time he was alive. Better an olive oil and fromaggio standard for them.

Wed, 05/25/2011 - 07:47 | 1308336 Tito Gobbilicious C
Tito Gobbilicious C's picture

Y'all be sure and note the insider trading being done at US Senate & Congress in today's news (Huffington post). If it was insider trading for Martha Stewart, why ain't it inside trading for the polyscum?

Fuck the banks. 

Wed, 05/25/2011 - 07:48 | 1308338 Tito Gobbilicious C
Tito Gobbilicious C's picture

Oh yeah, and fuck the plyscum with bankerwangs.

Wed, 05/25/2011 - 07:50 | 1308348 tradewithdave
tradewithdave's picture

There must be some sort of mistake.  Barbarous relics are not acceptable collateral.

Dave (barbarian at the vault) Harrison

www.tradewithdave.com

Wed, 05/25/2011 - 07:51 | 1308349 Quinvarius
Quinvarius's picture

Now all they have to do is run the price up and presto...everyone is solvent.  Something the US should have been doing already.

Wed, 05/25/2011 - 08:02 | 1308365 Tito Gobbilicious C
Tito Gobbilicious C's picture

Solvency is not acceptable collateral. These bastards want slaves, not freemen.

Wed, 05/25/2011 - 14:29 | 1309826 Vendetta
Vendetta's picture

The bankers and the political elite are just so greedy and sociopathic that they will make the people suffer as much as possible till they bleed them dry.  Someday our military will actually fight for the people instead of the politicos and their banker buddies

Wed, 05/25/2011 - 07:56 | 1308353 LoneStarHog
LoneStarHog's picture

Any country that deposited its gold with the U.S. Government/Federal Reserve and thinks that it is secure is delusional.  It was sold to suppress the price of gold and was replaced with I.O.U.s, much like the Social Security Trust.

On deposit...BWHAHAHAHAHAHAHAHAH!!!!!

Wed, 05/25/2011 - 08:22 | 1308393 centerline
centerline's picture

Who knows.  But I think one thing is for sure... if the music were to stop right now, sorting out the mess would be impossible.  My guess is that virtually everything has been sold, bought, traded, collateralized, securitized, etc. multiple times over.

Wed, 05/25/2011 - 07:54 | 1308355 Mongo
Mongo's picture

All Ure Gold Are Belong To Us

Wed, 05/25/2011 - 07:59 | 1308359 Tito Gobbilicious C
Tito Gobbilicious C's picture

Come 'n get it...sweet lickems for bankydanglers....i the iron maiden, or course. (must be having a morbid morning today...I love bangers, really I do...with MASH.

Wed, 05/25/2011 - 07:57 | 1308357 silvertrain
silvertrain's picture

Greece should tell em , ok..We have X amount in DEEP UNDERGROUND STORAGE, we will post that..The US does it, counts yet to be mined shit as inventory...

Wed, 05/25/2011 - 08:00 | 1308363 Tito Gobbilicious C
Tito Gobbilicious C's picture

it is carefully hidden in the moussaka.

Wed, 05/25/2011 - 08:13 | 1308377 centerline
centerline's picture

That ECB "collateral" statement yesterday was a dead give away.  The last act is warming up... the grab for the gold.

To those who are trying to figure out how much it is worth - I would argue the value is NOT in currency fiat terms.  They dont care if it is insufficient to pay the debts.  Hell, that this idea.  Dont want to leave any on the table or cast the impression that the debtor is free.  Any idea of creating a new currency will also suck because there will be no backing.

Wed, 05/25/2011 - 08:11 | 1308379 taint
taint's picture

If one borrows, shouldn't one try to repay?  If you can't, then fucking default.  This isn't hard.  

My issue here is that all political systems have been subverted by the banks to the detriment of the people.   The truth is Greece should be attempting to borrow every last euro it can, buy gold (and silver) food and guns, then default.  

Wed, 05/25/2011 - 08:20 | 1308390 dognamedabu
dognamedabu's picture

That's my plan.

 

 

Wed, 05/25/2011 - 08:22 | 1308400 iinthesky
iinthesky's picture

Since utah is moving to make gold money again, their state legislature, after enacting a fully gold and silver backed economy and creating an alliance with any other state or farmers etc.to put themselves into maximum state of autonomy, they should default on the frn fiat fed. When they end up in bankruptcy court, they should use the federal laws, FDCPA and its bretheren to break the claims on the state assets due to failure of consideration and all the rest of.the arguments that saavy folks are using to kick the hell out of debt collectors and banks in court. Finally, they should then completely stop accepting federal money from the District of Criminal corporation and cancel their fucking contracts. This should effectively remove the universal lien that the feds and The Fed hold over the land. Then they are free to tell the DC scum to go kill themselves and eliminate the federal income tax and more importantly property taxes and many other tools the bank coopted federal system uses to keep the people in check and in servitude.

Wed, 05/25/2011 - 09:48 | 1308657 MachoMan
MachoMan's picture

Does Utah have a military capable of defeating the United States Armed Forces?

Wed, 05/25/2011 - 14:44 | 1309867 akak
akak's picture

Yeah, and the massive Soviet army was SO effective in preventing and halting the breakup of the Soviet Union, too.

Secession: it's not just for ex-communists anymore.

Thu, 05/26/2011 - 09:40 | 1312855 MachoMan
MachoMan's picture

Depends on your guestimation of our point on the timeline.  Sure, at some point in time, the union will fall apart because the federal government as we know it will be vastly diminished.  However, until that time, states are kept in line via threat of insolvency and, if unsuccessful, then by the gun.  Out of an abundance of caution and risk aversion, states will remain in line until it is completely obvious the union is no more.  And, in our case, the wizard saw toto coming and wrapped himself in the curtain...  granted, we can see some of the levers now, but there's still enough plausible deniability to keep the rag tag group of adventurers afraid and, thus, in line.

You will be proven correct, just not for a while...  until that day, Utah, et al, are sackless.

Thu, 05/26/2011 - 01:14 | 1312056 foofoojin
foofoojin's picture

last time the US military marched into Salt Lake City. the people filled all the houses and buildings with straw. and threaten to leave the mititay in rough desert with no supplies or quarter. it was a war with no casulties. but Utah faced off with the federal goverment before and "won".

http://www.smithsonianmag.com/history-archaeology/brink-of-war.html

Thu, 05/26/2011 - 09:34 | 1312830 MachoMan
MachoMan's picture

And this applies to our present situation...  how?

Wed, 05/25/2011 - 08:31 | 1308413 Badabing
Badabing's picture

“European Parliament’s Committee on Economic and Monetary Affairs (ECON) to allow central counterparties to accept gold as collateral”

Allow to accept gold?

“European Parliament’s Committee on Economic and Monetary Affairs (ECON) to force central counterparties to pay debt with gold as collateral”

Fixed it

 

Wed, 05/25/2011 - 08:34 | 1308420 Catullus
Catullus's picture

The other side to this is to say the "re-montization of gold".  Of course the gold market still trades, so there's still yet another market (freedom) that the authoritarians won't accept. They won't even accept what the market for their own bonds is telling them.

Wed, 05/25/2011 - 08:48 | 1308465 gookempucky
gookempucky's picture

Here is the problem with sucking the last gold crumbs via debt exchange from the piigs and other failing EU members.............the gold has been swapped out for paper products; EXample- Belguim official gold reserve assets (in doolars) and if appropriate gold swapped.

http://www.24hgold.com/english/stat_country_detail.aspx?titre=Official Gold reserve assets (in US dollars) including gold deposits and, if appropriate, gold swapped&pays=Belgium&deid=68516C3340

Belgium CB reserves in gold 1991 were 940 tons....today 227 tons = poof.

http://www.24hgold.com/english/stat_country_detail.aspx?titre=Central Bank Gold Reserves (in Ounces)&pays=Belgium&deid=19576B1670

Wed, 05/25/2011 - 09:42 | 1308626 Urban Redneck
Urban Redneck's picture

I have a Banque Nationale de Belgique bullion crate from about 40-50 years ago.  It's one of the three stack/compartment crates.  If they want to sell physical gold and help the planet by recyling containers at the same time- I'll can get some of my better capitalized friends to make an offer on the half ton or so that can be the transported in the crate.  

Wed, 05/25/2011 - 08:53 | 1308476 Temporalist
Temporalist's picture

"They want the gold!  It doesn't matter what country if you have it they want it.  I don't care if you are a trader or holder or bear it is pretty obvious that gold is being sought, bought, smuggled and stashed."

http://www.zerohedge.com/article/here-why-voluntary-greek-restructuring-...

Wed, 05/25/2011 - 11:19 | 1309104 Ratscam
Ratscam's picture

The banksters go for the mother lode stored in the vaults around the world.

Caveat emptor

Wed, 05/25/2011 - 09:03 | 1308510 adonisdemilo
adonisdemilo's picture

Greece, please, please, tell whoever has your gold, you want it back and tell the ECB to fuck off.   

Wed, 05/25/2011 - 09:03 | 1308514 PulauHantu29
PulauHantu29's picture

Seems all the Central Banks and Hedge Funds and many plain vanilla pension funds are buying gold.....

Why would they touch that 'barbaric metal?"

Wed, 05/25/2011 - 10:10 | 1308775 dropdeadfed
dropdeadfed's picture

Wait so they're "broke" but they sit on tons of gold.  I guess I should know better than to think that any country would sell off its gold to settle debt before making sure an indentured  tax base is created.

Wed, 05/25/2011 - 10:13 | 1308796 MrBoompi
MrBoompi's picture

At current spot prices, 111.5 tons of gold is worth about $5.5 billion. I think Greece is in a deeper hole than that.

Wed, 05/25/2011 - 14:38 | 1309848 Vendetta
Vendetta's picture

gold priced at its true value, greece likely has no debt problems.

Wed, 05/25/2011 - 10:08 | 1308784 MrBoompi
MrBoompi's picture

I can certainly understand the desire to use gold as collateral, but wouldn't it make sense to do something about the fact the paper market can easily influence the price of physical gold held as collateral? I would think it makes sense to try to put a stop to manipulation of the prices of precious metals for this reason, but then again I'm not JPMorgan.

Wed, 05/25/2011 - 10:33 | 1308893 Fix It Again Timmy
Fix It Again Timmy's picture

Pirates of the EU...

Wed, 05/25/2011 - 10:48 | 1308962 Fix It Again Timmy
Fix It Again Timmy's picture

The custodian in charge of Greece's gold at the NY Fed is a gentleman by the name of Joe Izusu -

http://www.youtube.com/watch?v=oDK8BYS2d9s

 

Wed, 05/25/2011 - 14:47 | 1309770 Urban Redneck
Urban Redneck's picture

But he wants you to believe he is John Houseman.

I miss quality BS sales pitches, perhaps a quick detour to Madison Ave. on the way to Wall St. is in order by the pitchfork wielding mobs demanding to know "Where's the beef?"

Wed, 05/25/2011 - 11:28 | 1309129 Raymond Reason
Raymond Reason's picture

Well, the elites know present value of gold is complete fiction. 

Wed, 05/25/2011 - 14:37 | 1309856 Vendetta
Vendetta's picture

the elites only care about making sure the sheeple don't figure out the riddle before they have personally positioned themselves to profit massively.

Wed, 05/25/2011 - 11:46 | 1309223 slewie the pi-rat
slewie the pi-rat's picture

the intro mentions "counterparty risk management"

yup! 

The Economic and Monetary Affairs Committee of the European Parliament sounds like a bunch of zeroHeads. well, trolls, maybe.  just put your phys in a bankster's vault and use it to borrow paper so ya can invest in more paper, and only pay the banksters storage + abt 1% for borrowing green stamps against it. 

of course, i may be poor, even broke, but not compared to these wundermeisters!  perhaps it is b/c i keep my expenses down and don't borrow green stamps for stuff i don't need, can't afford, or to buy votes or poli-favors from the goober-elites and ollie garques.

euro nations eyeing others' gold.  hey!  this is freaking WWIII, not WWI or II.

isn't it?

Wed, 05/25/2011 - 14:01 | 1309736 Hook Line and S...
Hook Line and Sphincter's picture

WWIII?

Why yes!

This is the prodrome of the war where the velvet glove outside the tungsten fist harvests its bounty. 

Really no different than WWI or WWII, just the initial manifestation is a bit different. Banker/Oligarch induced chaos-catheter making way for the big siphon.

Wed, 05/25/2011 - 13:10 | 1309549 AldoHux_IV
AldoHux_IV's picture

Using gold as collateral is only providing a temporary form of arrangements for a bankruptcy to occur-- the real problem still exists: IMF/EU/ECB et al, in other words even a gold standard is not idiot proof-- we need to remove the idiots and idiotic institutions from power.

Wed, 05/25/2011 - 13:56 | 1309717 jmc8888
jmc8888's picture

Put up gold for collateral to fiat bailouts of fraud.

What a deal!

Wed, 05/25/2011 - 14:03 | 1309745 stephenwv
stephenwv's picture

Central banks print money out of thin air with no at risk assets and loan it to banks for interest payments.  They also loan it to sovereign nations for interest baring bonds.  nullification/default on debt to central banks causes no losses as there is no losses as there was nothing at risk to lose to begin with. 

Wed, 05/25/2011 - 15:50 | 1309951 cranky-old-geezer
cranky-old-geezer's picture

Banksters really don't care how much gold a nation can pledge against its debt.  

Funds lent to a nation were created out of thin air, nothing of value at risk by the banksters, the nation could simply forget about it like it never existed, banksters would simply write it off their books, and everybody's happy.

Banksters just want the gold.

Pledging gold for some imaginary thing created out of thin air, just numbers on a ledger sheet.  Not very smart.

Greece can solve their debt problem overnight. Just ignore it. Tell the banksters to fuck off.

What are the banksters going to do?

Answer: NOTHING. 

There's NOTHING they can do.

THAT'S what needs to be happening.  Nations telling the banksters to fuck off, they can take their fancy (worthless) "bank notes" and "loans" and "interest" and shove 'em up their asses, no more playing their conjuring-currency-out-of-thin-air games.

A central bank is nothing more than a fancy building with fancy furnishings and well-dressed pompous arrogant (fat) bastards with a printing press, trying to make people believe fancy pieces of paper coming off that press have value.  

It's the biggest con game in human history.

Some day people are going to wake up one morning realizing it's all a big monopoly game with ficticious (worthless) momopoly money.

That's when collapse of confidence will happen, those "bank notes" will suddenly be worthless, those central banks will collapse, and those central bank bastards will flee for their lives.

Thu, 05/26/2011 - 18:57 | 1314793 doggings
doggings's picture


It's the biggest con game in human history.

Some day people are going to wake up one morning realizing it's all a big monopoly game with ficticious (worthless) momopoly money.

lol the onion called this perfectly a year ago


WASHINGTON—The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct.

 

http://www.theonion.com/articles/us-economy-grinds-to-halt-as-nation-realizes-money,2912/

Wed, 05/25/2011 - 15:30 | 1310060 southsea13
southsea13's picture

So now the circle of shame is complete. Greece has been well and truly crushed, and all that nice shiny gold blingy stuff is there for the taking. That`s how it`s going to be in the future: pick off smaller countries with not much of a voice on the periphery of Europe and confiscate their gold; move in on other countries and start converting their fiat-based debts into nice tangible assets (like gold, silver, diamonds etc etc). :(

This is the day when the EU began to unravel. 

Wed, 05/25/2011 - 19:26 | 1310882 honestann
honestann's picture

The banksters know better than ANYONE --- their fiat, fake, fraud, fiction, fantasy, fractional-reserve debt toilet-paper is WORTHLESS.

Wed, 05/25/2011 - 23:31 | 1311782 headless blogger
headless blogger's picture

Well, geez, I wouldn't put my gold up for collateral to this band of thieves.  What is wrong with these countries? It must have something to do with the leaders in each such country, including the U.S.

at some point someone needs to tell the City of London to Fuck the fuck off. These people are living richer than kings, in palaces....several palaces.

Now their going after the gold. They know their ponzi scheme has past its experation date. So now they want to get the gold.

 

DON'T GIVE IT TO 'EM. They are re-loading their guns (allegorically speaking).

 

 

 

 

Wed, 05/25/2011 - 23:43 | 1311848 headless blogger
headless blogger's picture

I don't agree with some people that these banksters out of City of London/D.C. can keep printing. It calls to a big finale at some point in time, and that point in time is now. They had to get the Federal Reserve to print up cash to bailout Euro-banksters. It sounds like it was a few Trillion.

So, it looks like these centuries old families are getting nervous. We keep seeing that junky looking Queen of England popping up all over the place lately. Of course, we bailed her out too.

This is getting disgusting. In the end is gold and silver really that trustworthy a reserve for your household?

Thu, 05/26/2011 - 04:51 | 1312304 southsea13
southsea13's picture

I`m fed up with all this royal hoo-haa. The Queen is just a miserable fucker (and her husband, Prince Philip, doubly so, although that is understandable being married to her). The UK`s economy is more or less dependent on the financial district of London now. We don`t produce anything much here (unless it`s arms, and I suppose the war wildfires that are breaking out lately should provide a short(ish??) term market).

I`m just hoping that open season is declared on bankers. I`ll be opening a pitchfork shop when the angry masses hit the streets! :)

 

 

Thu, 05/26/2011 - 11:51 | 1313351 Bastiat
Bastiat's picture

Same as it ever was: like a battlefield scavenger knocking the gold teeth out of the fallen.

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Tue, 05/31/2011 - 12:21 | 1325632 thebark
thebark's picture

boy thats the truth....just a matter of when! prep now boys....& grils.

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