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Vietnamese Banks Who Paid Dividend On Stored Gold, Were Quietly Selling It To Appear Solvent
Several months ago, we reported about a troubling development in Vietnam, happy inflationary host of one of the world's most rapidly devaluing and best named currencies, that in direct refutation of Ben "Gold is not money, it is tradition" Bernanke's claim that gold is just a trinket one can fondle with no inherent value, the local banks had gone as far as paying the local residents a dividend to "store" their gold (recall all those charges against gold that it never, ever pays a dividend....). However, as we subsequently warned, any time a bank, and especially an entire banking sector, is willing to pay you paper "dividends" for your gold, run, because all this kind of (s)quid pro quo usually ends up as a confiscation ploy. Sure enough, as Dow Jones reports today, the gold, which did not belong to the banks and was merely being warehoused there (or so the fine print said), was promptly sold by these same institutions to generate cash proceeds and to boost liquidity reserves using other people's gold, obtained under false pretenses.
And now, it is time for the forced sellers to become forced buyers, as "the State Bank of Vietnam, the country's central bank, may allow local banks to buy up to 20 metric tons of gold over the next two months to improve their liquidity ahead of a ban soon on their use of gold as a means of boosting their operating capital." What they mean is that having been caught engaging in an illegal reserve boosting operating, the banks are now "allowed" to undo their transgressions ahead of a "ban" on what inherently was not a permitted practice. What is left unsaid, of course, is that any gold anywhere in the world, that is not in one's physical possession, and has been handed over to an insolvent bank (virtually all of them) for "safekeeping", is currently being sold, lent out, rehypothecated and otherwise traded with, in a way that any demand for full delivery will generally be met with silence, blank stares and phone calls going straight to voicemail.
From Dow Jones:
Banks have bought more than 60 tons of gold during the past six months and still need to buy more to meet their liquidity needs, Deputy Central Bank Governor Le Minh Hung said in the statement, posted on the central bank's website.
Local banks received gold deposits from the public in previous years and sold the gold in the local market for cash. Now they will have to buy gold to pay back their depositors at a time when global gold prices have been rising sharply. The central bank wants to prevent banks from this kind of risky operation, so it plans to ban banks soon from being involved in gold trading operations.
This is called being "caught with your pants down" while you are selling gold bricks...
"Demand for capital is usually strong in the fourth quarter. It's risky for the banking system if banks are forced to buy gold to meet their needs," Mr. Hung said.
The central bank will closely monitor and stabilize the domestic gold market and will soon ban banks from using gold as a way to boost their operating capital, he added.
This however begs the question: if the local banks can't fool the gullible public into handing over truly valuable assets in exchange for a "dividend" that is literally being created out of thin air, and then monetize said assets to appear solvent, just how will they appear solvent? Crickets...
Finally:
Though the central bank's gold management policy is making retail gold prices in the local market higher than global prices, there has been no smuggling of gold and therefore no increased demand for the U.S. Dollar so far this year, Mr. Hung said, adding that this has helped keep the exchange rate between Vietnam's dong the U.S. Dollar stable so far.
In other words, not only is gold money, it is better than money. But first you need: i) inflation; ii) collapsing currency and iii) insolvent banks. Luckily, the developed world has neither of these...
In summary: this...
or this?
»
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But their fiat is sooooooo pretty!
How dare the viatnamese attempt to ban fraud!
Nam Tram Ding Dong = 500,000
Sounds pretty fucked up but I'm not from there, so what do I know.
Is that Fu Man Chu?
I've always had just one DONG.
It's held its value well! It's worth just as much today as when I first got it - many years ago.
Even after it goes through cycles of inflation and is heavily spent, I still end up with my original DONG.
What aperfect name for a currency!
"I've always had just one DONG." - You are Barney Frank's protangonist!
I liked Jack Walsh's comment in the WSJ about the reaction to his claim that the BLS numbers are fudged:
Uh, actually, Jack, the BLS data are, in fact, handled like the gold in Fort Knox: unaccountable, unviewable, and totally falsified (probably).
I don't know about any of you, but my dong has deflated my assets pretty heavily over the past 12 years. I will, however, give up my dong for gold all day.
I have used my dong to conquer many assets!
Dongs for gold!
India. You listening?? Remember the Dong when Financial advisors tell you to take that sterile asset and collateralize it into an income bearing bond.
Vonfram, bitchez.
shake and bake!
Long Dongs...
Ah.. it's the Dong Show. TGIF
Aren't Turks getting the same ridiculous message?
Oh come now! No one has taken the words Dong, Sterile and Assets and combined them in a ribald way?
True, but I think Jack purposely loaded up that statement with that analogy for future reference.
and i think his name is welch not walsh: http://abcnews.go.com/blogs/politics/2012/10/pm-note-jack-welch-goes-rog...
and isn't it amazing how like the u.s. vietnam is becoming? whatever did they win that old war for?
or we fight it?
Barny frank??
I just couldn't.
You see... I'm a LESBIAN.
TRAPPED... in a man's body.
Barney is just wrong for me.
Yea? When was the last time you fisted a chick then? You need to be elbow deep in love my lesbi-man......
Some Dong's go up and some go down. Some look like a head and shoulders. But Zuuma's is golden!
Pretty sure that is Ho Chi Minh; after all he did unify his country and kick the imperialists out...
...boom boom number 10...boo koo bad...number 10 I say, number 10...
It is him:
http://en.wikipedia.org/wiki/Ho_Chi_Minh
My friend visited Vietnam a few years ago and went to the American War Crimes Museum in Saigon *cough* Ho Chi Minh City.
You should visit it when you are there.
D.B.- Nice to see you agian. Last time was on that flight in the PNW... BTW you still owe me a few G's for that parachute.
I was there about three years ago...very interesting museum. Just outside, there was a vendor selling local trinkets and in a tray of odds and ends I found several peace dollars 1923-1927 for around $12 each....They look legit....after having read recently about Chinese counterfitting of US coins though I'm wondering if maybe my deal was not so good.....
I have no desire to return to that shithole. I was in Nam in 1972. Charlie is still a cunning little bastard.
The man in the black pajamas, Dude.
It was sheer stupidity that you were there in the first place. Another fucked up police action by the USSA. Grind up people and war materials for ten years. Hooray for Boing, GE, Colt and others.
They whipped our ass. It couldn't have happened to a nicer group of folks. Present company excluded of course.
The saddest part of that fucking mess: Not that we lost 60,000 Americans (though that was tragic); or that we killed over a million or so Vietnamese (though that was disgusting). The saddest part is the American people are still willing to be fucked by scumbags like GWB and BHO, with a big smile on our faces.
In other words, not only is gold money, it is better than money. Priceless!
The gold, which did not belong to the banks and was merely being warehoused there (or so the fine print said), was promptly sold by these same institutions to generate cash proceeds and to boost liquidity reserves using other people's gold, obtained under false pretenses.
Uhhhh....isn't that pretty much modus operandi for a bullion bank? OK in London, bad in Ho Chi Minh City.
The banks really duped the guys they sold it to. It's just a rock, cannot be eaten and will be confiscated.
A metal, not a 'rock'.....
--We are insolvent because we are insolvent.
Ho Chi Min
Hung Long Dhong will step in and take over for the Viet Central bankers and show them some real Merikan banker fraud.......How to lease gold 1000X and make it hurt baby
So this would be the first high-profile gold ponzi?
Yet another reason to buy physical gold only, to be held in your own possession!
And make sure it isn't tungsten...
Just buy one ouncers and fractionals....its good!
A story like this could run once a day on the front page and still the muppets will continue to buy paper GLD or buy physical and have someone else store it - they just don't get it.
The whole reason to buy physical is to HOLD it physically.
Mrs. K asks me if our coins are real.
So I let her gnaw on the ones set in the pistol grip of my .45
Happy now, baby?
But will she deep throat the .45? Inquiring minds want to know.....
I do have the majority of my 401K in PHYS.....which I've been careful to purchase whenever the premium takes a plunge. I'm hopeful that this will be safe...er.
Those Banks had best pray, that the Gov is /was in collusion w/them on this scam.
Or they will ALL have a 7.62x25 Tok round in the back of their heads, asap.
What about Sprott Physical?
Hmmm curious … didn’t catch that MSM (quick Google search only pulls up this Zero Hedge article). This will probably be how it starts something small but it will be the straw that breaks the camel’s back. Slowly but surely the sheep will start to see the wolf …… but then it will be too late. I just hope that I’m around to see it unfold – history in the making.
no but you will find this article on cnbc
http://www.cnbc.com/id/49540593
Bet it glows in the dark!
Disclosure: Long Dong
LongdongSilver
https://en.wikipedia.org/wiki/Long_Dong_Silver
There's a song in here somewhere:
There's a ding in the Dong.
There's a dent in the Dollar
Gold is the song.
Stand up and holler.
Nothing like this could ever happen in the highly audited, all above board, alphabet soup of regulators looking out for you West
(cough)
Street (Walk) Regulation
A banking man in Haiphong
Was said to never do wrong
But one day he sold
His prostitute's gold
Putting a Dong in her thong
You've stolen real value she said
If you think I'm giving you head
You can go find a duck
To give you a phuck
Before I kill your ass dead
So he said to her baby please
And quickly dropped to his knees
I'll get it all back
So cut me some slack
You'll see, I'll do it with ease
So, next day he shows up with glitter
To get himself out of the shitter
He handed her coin
Then her knee to his groin
Preceeded a throat slashing slitter
A do-it-yourselfer named Alice
Used a dynamite stick for a phallus
They found her vagina
In South Carolina
And part of her anus in Dallas
Nah,
There once was a tart named Alice
Who used a stick of dynamite for a phallus
They found her vagina
In South Carolina
And her tits in Buckingham Palace!
Yup, Charlie owns the night.
Fractional Reserve gold storage....why didn't I think of that!?
You're a few hundred years late!
It's never too late to get a pitchfork to join in on the second act of this play.
VietComms pfft.
Stupid question but how are banks supposed to buy 20 tonnes of gold when they recently sold gold due to liqudity problems?
WTF moment of my day.
They'll be buying gold, not gold gold, rehypothetically speaking.
Shit, for a couple of seconds, I was trying to make sense of that.
Wine-thirty Kaiser. It's been a long week.
Yea it makes perfect sense in a rehypothetical world.
Oh, wait..
Tungsten-Gold much cheaper, Grasshoppers...
It is simples: The central bank will print them the money to use in the purchases.
I've got it figured out, see. I might have to give up software development and try banking.
can't you develop software to get us the heck out of the matrix already?
like your idea but you forget that diluted Vietnames Dong aren't buying the same amount of rice from China.
The Dong is not as good as the Dollar, ya know.. (cough)
So Bernanke's not the only one who wants to violate us chumps with his dong?
fuck me, now that lease rate of 0.5% on 1 year for loaning your gold doesnt look so hot, back to zero at BOA
i think the turks gives theirs to Iran for oils.
Weren't their banks offering to hold their citizens' gold for them to keep it safe?
yep.
CHARLIE DONT SURF
"Keep your metals cool, dry and nearby!" (And, always retain the proper gold/silver to lead ratio.)
Tuco Benedicto Pacifico Juan Maria Ramirez
Charlie says: When the enemy advances we retreat, when the enemy retreats we advance.
They lost the gold on a boating accident!!
How much is a few kilos of tungsten worth nowadays anyway?
If they're selling actual gold they're doing it wrong.
You can't eat dongs! Oh shit! Sorry Barney!
Tuco
Barney has been in hiding because he's largely responsible for the financial meltdown.
True, but that's one of the media's best kept secrets.
Barney is busy hiding the dong.....
Vietnam is on my top ten most affordable retirement destinations.
I'll eat Pho' everyday and live forever!
Fly to Hainan Island in the PRC for the holidays.
It will be sweet!
Pho must be a superfood or something, General Giap is 101!
Musical Ingots...when the music stops, he that grabs his gold last, gets excuses
I heard this was on the Ben's wishlist for this holiday season:
http://www.amazon.com/The-Complete-Idiots-Guide-Alchemy/dp/1592577350/re...
Hahahahaha....Kudos to you good sir!
Ho Chi Mihn
Is a son of a bitch....
sing along everyone!
Got the blueballs, crabs, and the seven year itch!
"' Your Gold was no Gold, it was Tungsten...". Solly, next please...
It's funny how much our funny money is looks more like third world money with each new issuance.
http://tinyurl.com/8fkap25
Sorry...... Have a bad taste still
Please Vietnam,
Please Sink under the weight
of your own Dung
and forever live,
in the Bowels,
of the Damned........
I wish I could monetize my dong for gold. Male hookers are no good though, unless the elite want a fag boy to bang them. Quite frankly, that is not the "bang" banksters deserve. Thankfully, I am a peaceful man and will not play their game.
Been done before: http://www.youtube.com/watch?v=sr0gNJ090JA
Caught with their pants down, holding their dong...
You can pay dividend on my backyard stock you fucks. Audit only when you pass my German shepherd.
Confuscious say he who hands over gold left holding his dong.
Confucious also say, a dong in the hand is worth two in the bush.
(although I am skeptical)
I think its hilarious that people belive the banker when they say "sure we've got your gold right here" - ha !!
Trust, but verify.
Has this story been seen here yet?
James Turk - The Entire German Gold Hoard Is Gone:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/25_J...
Is anyone surprised that this would happen in a communist country? o.O
Just like in that other communist country, the USA. When is Fort Knox going to be audited? /sarc
ZH does it again !!
you won't find these kind of stories on the stupid mainstream media sites....specially cbs-mw = Cheerleading BS mw.
so this "ONLY" happens in vietman right??? yeah right !!
i don't care....I WILL PATIENTLY WAIT FOR GOLD @ $300/OZ TO BUY THE PHYSICAL STUFF I CAN "FONDLE" AND RIDE til....................$10k.....i bet US 10 yr will then be yielding 20%...= buy it.
1) odummer will loooooose BIG !!
2) odummer will annoint himself at least another 4 years......don't believe me?? ok just watch and wait.
Gold won't be $300/OZ unless you can travel back to 2000 and buy it for that price. Just stack up now, you won't be disappointed.
Last revaluation in Zimbabwe had 100 TRILLION $ZIm(old) replaced by 1 $Zim(new). Of course now the $Zim is worthless - not even good for toilet paper.
Gold could very well hit $300 /oz in a similar scenario with a revalued $US - the question is how many current $US will that represent.
Please e-mail me for information on my new gold ultra-safe super secure can't lose money depository service. I'll pay you to store gold with me, and don't bother asking how I could possibly make money doing this. It's complicated, you wouldn't understand.
Fear not everyone, "The dong is firm!" (quote from former Vietnamese finance minister).
"Euro limp, dollar stiffens after US presidential erection."
All these asian countries have mass murderers on their currencies. When do we get George Bush on ours?
He would look great on a $22 1/2 dollar bill.
Ask the Cherokees what they think about the man on the twenty dollar bill.
Your comment has no relation to the article. You should know your history before you mindlessly insult one of America's greatest presidents with dumbass comments, and please spare us the trail of tears. Andrew Jackson said:
The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.
You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out.
I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.
Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.
As long as our government is administered for the good of the people, and is regulated by their will; as long as it secures to us the rights of persons and of property, liberty of conscience and of the press, it will be worth defending.
It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes.
If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations.
What central bank did we have in AJ's day?
Excellent question. ZeroHedge provides an answer: http://www.zerohedge.com/article/andrew-jackson-repealing-central-bank
Excellent answer, though long. Isn't it amazing how clearly and fluently learned people of the 19th century could write compared to present times? I recall reading a book by Jefferson Davis about the events of, and events leading up to the civil war and was impressed with his skills also.
And the prophecy of TJ has come to fruition...........
“The end of democracy and the defeat of the American Revolution will occur when
government falls into the hands of lending institutions and moneyed incorporations.”
Thomas Jefferson
Indeed.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
~Thomas Jefferson
The discussion is about murderers on paper money. You are obviously a clueless piece of dog doo-doo (to put it very very politely). I do agree that his work against the Bank of the United States and Nicolas Biddle was a brave act however the running off of the Cherokee in the winter from their homeland was still an act of genocide. You are either an ignorant jackass or perhaps you think mass murder is OK as long as the people murdered are not the same race as you? Seig Heil asshole. Also, since you think genocide is OK, that makes you kissing cousins with the bankster bastards. Do you go to the family reunions?
With your logic, Adolf Hitler, who was awarded Germany's highest bravery medal, was OK regardless of what he may have done later. Also, George Bush, Sr., was the youngest naval aviator in WWII and by all accounts a very brave sailor. Does that make him a lifelong hero. I think not.
A real hero was Davey Crockett. He fought against the murderous and greedy devils who ran the Cherokee off their land so they could sell it for a big profit. He was considered to be a likely successor to Jackson but he was a righteous man and wouldn't go for an obvious act of murder so he didn't fit in Washington anymore. Of course he died bravely at the Alamo.
Anyone on "paper money" is by definition a murderer. How else could one rise to the position necessary to get ones face onto paper currency?
Kissing cousins with the bankster bastards? Take your pompus ass and shove it.
Did Natives get murdered by many - fuck ya. So did many others, as you so rightly point out. And DAVEY killed lots of people, including "mexicans" at the Alamo. But either your sarcasm was buried knee deep, or his killing of other humans was not a bad thing.
Welcome to fight club and get off your high horse.
Pompous: Affectedly and irritatingly grand, solemn, or self-important: "a pompous ass". Because I don't like murdering scum I am pompous? You are a confused man (presumably). In any case, I don't own a horse but I am solvent. Also, any person who thinks the "trail of tears" was no big deal (which was stated clearly) is a prick (and makes some bankster bastards look positively sweet). I do agree that getting your face on paper currency usually indicates you are less than a saint, however (for examples), George Washington did not mass murder any group and neither did Thomas Jefferson. So being a murdering scum is not an absolute requirement for the job.
The story of the Alamo is quite complicated. I actually studied Mexican history for two years and have heard both sides of the story. However Davey Crockett came into the story late and as far as anyone knows, didn't murder anyone unless you consider all soldiers murderers (which is what you imply and which is thinking related to Ted Turner's recent statement that he thought the world would be a better place if all the soldiers would kill themselves (he took it back the next day but presumably only because he was taking heat about it). For myself, I believe the whole Iraq/Afghanistan business is an imperialistic fraud however my heart goes out to the men and women who joined the service (in these or any other war) because they couldn't find a job.
Finally, I think you could be a lot happier if you hadn't found one of those high horses and stuffed yourself with its dung.
Uh serial killer/mass murder. Hitler hated central bankers as well,
jackson was a democrat....
he "balanced" the budget and DEFICIT by SELLING land....= that's NOT exactly reducing the deficit !! secondly i remember watching history channel...he's responsible for something called "the trail of 1000 tears???"
trail of 1000 tears = natives were forced to march out of their lands into a reservation....change u can believe from a demon-rat.
yeah, good thing he's gone and Mr. Peacelover is in there...........
http://www.zerohedge.com/print/458039
Give us your gold and you can hold our dong.
Didn't they read between the lines?????
Shit.
Never knew the NY Fed had offices there..
People will always learn the hard way no matter who tells them better, CLASS DISMISSED!
Now if they could only turn that rice into gasoline, they wouldn't need the gold so much.
Where did they learn this trick!?
John Corzine? Oh, wait he didn't steal client's gold, so sorry.
Someone should put a fist full of dongs up the bernank's bank...
If someone is dumb enough to store their gold in a bank in a small Asian country . . .
Hongkong, Singapore come to mind where some of the great ex-pat investor minds store their gold apparently.
Hongkong, Singapore come to mind where some of the great ex-pat investor minds store their gold apparently.
Yup until China rehypothecates it all to the mainland.
Whatever idiot gave their gold to a bank deserves everything they get.
I took my Dong to Phuket for three weeks. A lot of Dong in Phucket makes you happier than a puppy with three dicks.
Have Gun .... Will Hoard ! I will store your gold for free .... anytime .... any amount .... certain withdrawal conditions apply .... see prospectus for the fuck you details ! Sincerely, Monedadin
I didn't know Corzine ran banks in Vietman. Huh.
Ahhh, that's where Corzine went. Makes sense now.
Dude! We had same thought at same time! Are we twins?
haha - maybe!
Hey. Can I store my gold and get paid for it in the US? How much do they pay? That sounds like a great investment!
Monedas replay: "Give a man an ounce of silver .... he'll eat tuna fish for a week ! Teach a man how to mine silver .... he'll be dead in three weeks !"
lived there for a few years recently...
YouTube - North & South Vietnam Duke It Out - Never Talk about Viet Cong Fight Club!
... not a great vid mash but the Fight scenes at mark 29 sec. are Funny
I personally want to hear what Becky Quick has to say on the Dong situation. I'm sure she's already on it. The story, that is.
HAHAHAHAHA
What a bunch of naive people.
Dinky dao bank fuck you long time Joe.
Haha. Exactly. Love you long time Bitchez.
This shit will make you guys laugh. http://www.xe.com/currencycharts/?from=USD&to=VND
What exactly does 20,872.46719 dong buy? well 5-7 $) 140,000 dong( will put you in a budget motel for the night)
A Hot Dog is 23-30,000 dong, per pound.
Yup, two baskets - one for the heads, one for the tails. Hahaaha.
Guess what happens if you give a local 10 Mil dong & you have a grudge.
Wise up muppets.
Well done Freebird! +1
A scene in the movie Blow showed the drug dealers in a normal home. The entire house was packed with cash. They just had paths to move around the house, cash everywhere.
One of the drug cartel convinced the dealers to put all this money into a Panamanian bank. Safe as can be was the sales pitch.
Later the drug dealer went to withdraw the money. Opps wasn't there. Vanished. COROZINED.
Somebody earlier mentioned that you won't see these reports like this one in the MSM. Try talking to anyone you know about this stuff they have no clue what you are trying to discuss with them.
This lack of knowledge equates to opportunity to the few that are paying attention. I plan on taking advantage of this opportunity.
Dividend on 'stored' gold. It's like fucking your brothers sister. Oke, we are going down, big time. Fema time. Nuke time.