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It Begins: Ecuador Demands Repatriation Of One Third Of Its Gold Holdings

Tyler Durden's picture




 

One week ago, when we reported the news that the Bundesbank had secretly pulled two thirds of its gold from London years ago, we said the following:

... Germany has done nothing wrong! It simply demanded a reclamation of what is rightfully Germany's to demand.

 

And here is the crux of the issue: in a globalized system, in which every sovereign is increasingly subjugated to the credit-creating power of the globalized "whole", one must leave all thoughts of sovereign independence at the door and embrace the "new world order." After all this is the only way that the globalized system can create the shadow cloud of infinite repoable liabilities, in which we currently all float light as a binary feather, which permits instantaeous capital flows and monetary fungibility, and which guarantees that there will be no sovereign bond issue failure as long as nobody dares to defect from the system in which all collateral is cross pledge and ultra-rehypothecated... for the greater good. Until the Buba secretly defected that is.

 

And this is the whole story. Because by doing what it has every right to do, the German Central Bank implicitly broke the cardinal rule of true modern monetary system (never to be confused with that socialist acronym fad MMT, MMR or some such comparable mumbo-jumbo). And the rule is that a sovereign can never put its own people above the global corporatist-cum-banking oligarchy, which needs to have access to all hard (and otherwise) assets at any given moment, on a moment's notice, as the system's explicit leverage at last check inclusive of the nearly $1 quadrillion in derivatives, is about 20 times greater than global GDP. This also happens to be the reason why the entire world is always at most a few keystrokes away from a complete monetary (and trade) paralysis, as the Lehman aftermath and the Reserve Fund breaking the buck so aptly showed.

 

We are confident that little if anything will be made of the Buba's action, because dwelling on it too much may expose just who the first country will be (or  already has been) when the tide finally breaks, and when it will be every sovereign for themselves. Because at that point, which will come eventually, not only Buba, but every other bank, corporation, and individual will scramble to recover their own gold located in some vault in London, New York, or Paris, or at your friendly bank vault down the street, and instead will merely find a recently emptied storage room with humorously written I.O.U. letters in the place of 1 kilo gold bricks.

It appears that the story, which has refused to go away, was not covered sufficiently fast, and precisely the worst case scenario - at least for the "asset-lite" status quo - is slowly but surely starting to materialize. From Bloomberg:

Ecuador’s government wants the nation’s banks to repatriate about one third of their foreign holdings to support national growth, the head of the country’s tax agency said.

 

Carlos Carrasco, director of the tax agency known as the SRI, said today that Ecuador’s lenders could repatriate about $1.7 billion and still fulfill obligations to international clients. Carrasco spoke at a congressional hearing in Quito on a government proposal to raise taxes on banks to finance cash subsidies to the South American nation’s poor.

So yesterday: Germany... today: Ecuador... tomorrow: the World?

Because while Ecuador, with its 26.3 tonnes of gold, may be small in the grand scheme of gold things, all it takes is for more and more banks to join the bandwagon and demand delivery in kind from official repositories (i.e., New York and London), and the myth that is the overcollateralization of hard money by central banks will promptly come to an abrupt, bitter and, likely, quite violent end.

 

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Wed, 10/31/2012 - 17:28 | 2935728 maxmad
maxmad's picture

We are running low on Tungsten, give them the gold wrapped chocolate coins....

Wed, 10/31/2012 - 17:29 | 2935730 maxmad
maxmad's picture

Hey its Halloween, if they can't take a joke...

Wed, 10/31/2012 - 17:34 | 2935744 camaro68ss
camaro68ss's picture

I see a sinking cargo ship heading to ecuador filled with gold in the near future.

crazy how gold fill ships sink all the dam time.

Wed, 10/31/2012 - 17:44 | 2935767 SHEEPFUKKER
SHEEPFUKKER's picture

Donde esta mi oro bitchez?

Wed, 10/31/2012 - 17:47 | 2935774 Enslavethechild...
EnslavethechildrenforBen's picture

Gas will be $20/gal by Dec, $50/gal by next summer and $100/gal by this time next year.

Gas is not going up, the dollar is going down, all the way down.

Got a farm?

Wed, 10/31/2012 - 17:54 | 2935795 akak
akak's picture

Damn, just think of how positive that will be for GDP though!

Wed, 10/31/2012 - 18:04 | 2935814 redpill
redpill's picture

My prediction:

'Why yes of course Ecuador...

...as soon as you hand over Mr. Assange.'

Wed, 10/31/2012 - 18:22 | 2935858 doomandbloom
doomandbloom's picture

Lets 'democracy' Ecuador.

Wed, 10/31/2012 - 18:29 | 2935875 akak
akak's picture

I foresee Ecuador very shortly joining the official "Axis of Evil" rogue nation list, Obama-style.

Wed, 10/31/2012 - 18:37 | 2935894 knukles
knukles's picture

Plan B from BIS.
Whispering to Rockefeller delegate (er excuse me, US delegate)  Hey, do they have oil?  Well then let's goad them into repatriating all their gold back and the shock and awe 'em right back into the modern democratic mold of free men everywhere...

Wed, 10/31/2012 - 19:10 | 2935968 Rathmullan
Rathmullan's picture

Someone please explain to the Equadorians' that gold is mere "tradition" (polite chairman quad b speak for "relic").

Wed, 10/31/2012 - 20:58 | 2936263 DeadFred
DeadFred's picture

I watched them sell four times this amount once in the time it took to transition from Ron Paul questioning Ben Bernanke to Maxine Waters's questions. Just to keep it in perspective. They must have loads of the stuff if they can throw it around so recklessly.

Wed, 10/31/2012 - 19:45 | 2936041 Winston Churchill
Winston Churchill's picture

Love the sound of drones over Quito in the morning.

Thu, 11/01/2012 - 00:07 | 2936689 Dungeness
Dungeness's picture

Ecuador followed by Venezuela, then Bolivia, and maybe Argentina for a finale.

A latin spring? or perhaps a latin winter?

Wed, 10/31/2012 - 18:46 | 2935916 JPM Hater001
JPM Hater001's picture

Assange comment is about as The most unexpectedly true comments I didn't see coming

Wed, 10/31/2012 - 18:59 | 2935947 Strider52
Strider52's picture

Kirk: "How's the Ecuadorian Bones?"

McCoy: "He's dead Jim."

Wed, 10/31/2012 - 19:18 | 2935986 Whalley World
Whalley World's picture

Two excellent Points!

Thu, 11/01/2012 - 21:08 | 2939555 hmmtellmemore
hmmtellmemore's picture

I agree with both of Cynthia Myers points.

Wed, 10/31/2012 - 18:06 | 2935821 Manthong
Manthong's picture

Hypothecation means never having to say it’s gone.

Wed, 10/31/2012 - 18:40 | 2935898 Dr. Richard Head
Dr. Richard Head's picture

I am reminded of the words Chairman and CEO, Tom McInerney, regarding the relatively small country of Austria and their respective economy. Let the gold grabbing begin.

Wed, 10/31/2012 - 18:44 | 2935906 JPM Hater001
JPM Hater001's picture

I am reminded of price discovery bitchez

Thu, 11/01/2012 - 04:58 | 2936866 UnpatrioticHoarder
UnpatrioticHoarder's picture

If we assume gold in London is rehypothecated up 100-fold (a reasonable assumption) then Ecuador's 26 tonne holding is equivalent to 2600 tonnes of imaginary LBMA gold - pretty hefty.

Wed, 10/31/2012 - 17:57 | 2935803 Pladizow
Pladizow's picture

Lets see the US justify a Ecuador/Venezuela invasion!

But as the US has its 3rd largest embassy in Colombia, i'll guess they'll try!

Wed, 10/31/2012 - 18:05 | 2935819 Enslavethechild...
EnslavethechildrenforBen's picture

Then Brazil...

The very last 2  of 200 stars on our flag will be Mexico and Canada

Wed, 10/31/2012 - 20:01 | 2936080 Urban Redneck
Urban Redneck's picture

Brazil has been building more roads than the US, and that's without $700B in "shovel-ready" stimulus...

Wed, 10/31/2012 - 20:55 | 2936250 unrulian
unrulian's picture

you mean our 11th province will be USAchewan, you're broke Bitchez...

 

Awww.. who am i kidding so are we

Wed, 10/31/2012 - 18:15 | 2935846 CPL
CPL's picture

All Eggs in one oil basket right now, what could they send on the other side of the planet.  About as far away from the task at hand.  

Besides it'll myseriously "sink" in the ocean like the Russian ore that vanished last week.  Wasn't there something about Chile in there as well...or Peru.  Anycase, turns out all the Nazi gold was as phony as a six dollar bill.  People are just starting to catch on what BreX really was.

 

It was a way for governments to lie about gold holdings for one.  A scam and a half of a company publically stating that it had the line on 4% of the entire human mining efforts, of all time.  That's how outgraeous the lie was.  But it didn't stop governments from filling their greedy little pockets with IOU's from a stock market darling on future gold holdings.  It was certainly all too good to be true.  It took nearly a decade before people figured out that the execs were scraping gold fillings into core samples...nothing has ever been done legally, ever other than a "so Sorry, here's minimum back".

 

If they did something about it, then the gross gold manipulation that happened during the 90's and carry's on until today.  Because the non gold "mined" by BreX was actually counted, as if it actually existed, when it didn't.  So wait for that "gold" to vanish as well because it never existed.  That's the secret of gold btw.  BreX was the awful bandwagon of bullshit they rode in on to create the boom of the 90's and the constant rebubbling.  The assumption was there was a fall back plan...like IOU's instead of gold.

 

But people don't accept IOU's do they.  What's really horrible is the more than likely embargoes about to happen soon because of it because once the trust in gold is wrecked, it's going to be a real mess unless we all figure out the "best" worst possible scenario in two really bad end results.  It's pretty scary shit.

Wed, 10/31/2012 - 18:52 | 2935920 Dr. Richard Head
Dr. Richard Head's picture

USS Enterprise style. Oops, that is the Iran trigger. Hasn't happened ...yet.

Thu, 11/01/2012 - 05:03 | 2936871 UnpatrioticHoarder
UnpatrioticHoarder's picture

I registered http://ussenterprisememorial.com for that reason - strangely now both my twitter accounts with email addresses hosted at the same IP are censored - none of my followers see my tweets in their feeds and my tweets don't appear in search results.

Thu, 11/01/2012 - 21:09 | 2939564 hmmtellmemore
hmmtellmemore's picture

You enjoy meeting FBI agents at your workplace?

Wed, 10/31/2012 - 21:56 | 2936422 DavidPierre
DavidPierre's picture

Bravo!

 

Thu, 11/01/2012 - 09:01 | 2937168 overmedicatedun...
overmedicatedundersexed's picture

central bank bullion vault: a hole in the ground with a lying executive standing next to it..

Wed, 10/31/2012 - 18:13 | 2935837 THX 1178
THX 1178's picture

No-- the economy shuts down when it gets that high-- no money left for discretionary spending.

Wed, 10/31/2012 - 17:50 | 2935783 Wakanda
Wakanda's picture

El tungsteno es seguro en Nueva York.

Wed, 10/31/2012 - 17:47 | 2935773 TwoShortPlanks
TwoShortPlanks's picture

Better than any feedback from the Gold Market, the repatriation of Gold back to their respective countries may not only show us cracks in the wall of the financial system, it may show us that Libor was just a Winona Ryder moment, and that the scale of the Gold larceny may dwarf anything before it.

In light of Germany's issue, I'd say every country with Gold in storage offshore somewhere is wondering just how to get it back without creating waves...and fast!

Wed, 10/31/2012 - 17:58 | 2935804 dick cheneys ghost
dick cheneys ghost's picture

Kinda what Jim Willie says in his latest piece, out today..........

 

http://www.silverdoctors.com/jim-willie-central-bank-gold-rehypothecatio...

 

Too bad Jim is not discussed more on ZH.............I learn just as much from the comments on ZH as i do the posts!!

 

 

Wed, 10/31/2012 - 18:08 | 2935830 toothpicker
toothpicker's picture

Yup. He's spot on. Venezuela, Germany, Holland, Romania and now Ecuador want their gold back. 

Wed, 10/31/2012 - 19:16 | 2935981 dark pools of soros
dark pools of soros's picture

Gold Run bitchez!!!

Wed, 10/31/2012 - 19:38 | 2936021 aleph0
aleph0's picture

" Venezuela, Germany, Holland, Romania and now Ecuador want their gold back. "

Turkish Banks are now offering a "Gold Account" .

They are offering to "hold" your Gold so you can even borrow against it !

Wow .. thanks ... NOT
;-)

"Turkish Banks Go for Gold to Lure $302 Billion Hoard"

http://www.bloomberg.com/news/2012-10-29/turkish-banks-go-for-gold-to-lu...

Wed, 10/31/2012 - 21:40 | 2936388 natty light
natty light's picture

Turkey on the FDR 1933 tip.

Wed, 10/31/2012 - 22:08 | 2936454 salvadordaly
salvadordaly's picture

It's kinda like sitting at a game of poker. There you are, all your (gold) chips. You try to bluff with a pair of kings, staring down an ace on the river, and everyone calls your bluff! At this point you better have your hat pulled low and your sunglasses on! The Pucker Factor is very high!

Wed, 10/31/2012 - 18:27 | 2935876 bank guy in Brussels
bank guy in Brussels's picture

Yes, Jim Willie is terrific

In his latest:

How President of Ghana John Atta Mills has suddenly turned up dead after asking for Ghana's gold back from London

And how 6000 metric tonnes of gold have secretly departed London in recent months, to handle margin calls from Asian nations

Meaning there is not enough gold in London and New York left in the supposed supply held for other countries ...

And many other things in the global 'Gold War'

Always an intriguing read

http://news.goldseek.com/GoldenJackass/1351713600.php

Wed, 10/31/2012 - 20:08 | 2936090 Urban Redneck
Urban Redneck's picture

Presidents Mills died of natural causes.

Wed, 10/31/2012 - 20:41 | 2936205 BigJim
BigJim's picture

What did he think he was doing leaning that far out of the window?

Wed, 10/31/2012 - 20:57 | 2936254 unrulian
unrulian's picture

I heard he drowned in a "boating accident"

Thu, 11/01/2012 - 01:36 | 2936806 Kiwi Pete
Kiwi Pete's picture

Link?

 

Presidents Mills died of natural causes.

 

Thu, 11/01/2012 - 05:48 | 2936896 marriedgeordie
marriedgeordie's picture

Well, I cannot think of any unnatural cause of death. If, for instance, a bullet passes through your brain, it would be natural for you to die - in fact, it would be unnatural for you to continue living. So, I believe you when you say that president Mills died of natural causes. However, this statement is irrelevant - a relevant question to ask is whether the death was assisted or nor. And to this question, sir, you have given us no answer.

Wed, 10/31/2012 - 20:21 | 2936135 TwoShortPlanks
TwoShortPlanks's picture

When I lead the Global Financial Cleansing And Purging, I will be offering Jim Willie the position of Minister Of Propaganda, with a zero-bullshit-tolerance agenda.

Once mathematical inevitability swings the pendulum to opposite, I will dedicate the rest of my life to hunting down these mongrel dogs.

The Earth is round so there's nowhere to hide. So run motherfuckers, running makes the game a lot more fun.

Wed, 10/31/2012 - 21:45 | 2936401 Lore
Lore's picture

I hope the unnamed sources for some of these bits of market intel realize just how much they are appreciated. In these lying, stinking, corrupt, psychopathic markets, a truth teller is as rare and precious as gold. I mean it. If you read this: THANK YOU.

Wed, 10/31/2012 - 19:59 | 2936072 Dr. Sandi
Dr. Sandi's picture

Jim Willie is a god.

I only hope 'they' never catch up with him.

Wed, 10/31/2012 - 20:42 | 2936206 BigJim
BigJim's picture

I'm still waiting for his 'Morgan Stanley is about to crash!' call to come good.

Wed, 10/31/2012 - 20:58 | 2936259 unrulian
unrulian's picture

I'm still working on that crash JPM buy silver bullshit

Fri, 11/02/2012 - 22:05 | 2943446 Dr. Sandi
Dr. Sandi's picture

Buying silver is a great idea, whether JPM crashes or not!

Wed, 10/31/2012 - 22:02 | 2936436 DavidPierre
DavidPierre's picture

I second that emotion.

Wed, 10/31/2012 - 18:00 | 2935807 Dr Benway
Dr Benway's picture

Yeah but I fear a lot of the repatriating countries will just sell their gold to keep their respective ponzis going

Wed, 10/31/2012 - 18:11 | 2935834 Enslavethechild...
EnslavethechildrenforBen's picture

You don't need gold to keep a ponzi scheme going, that's the entire point of printing toilet paper. What's happening is that the entire planet has figured out that it's just worthless valueless paper, and the central bankers know that they are going to have to start printing more and more faster and faster before people take things in to their own hands and go back to the gold standard by themselves.

In other words, the bankers don't want to be left holding bags of paper, they know they're going to need the real deal.

 

Wed, 10/31/2012 - 20:30 | 2936166 TwoShortPlanks
TwoShortPlanks's picture

BINGO! If the players truly believed that Gold was not important in the scheme of things, then Gold would be worth as much as copper. The fact that Gold is starting to play an emergng role indicates two things, they are; 1. That Gold is indeed part of the end game wealth transfer /stabilization and, 2. That the players want as much as they can get.

The trick is to watch and observe just how heated this game becomes.

4-5 years ago this was all too complex, now, after so much converging of interests and hands being shown (thanks ZH), and asside from a few surprises here and there, it's a relatively simle game...but mindful of games within games.

Wed, 10/31/2012 - 22:10 | 2936461 DavidPierre
DavidPierre's picture

11 - 12 years ago this was all too complex, now, after so much converging of interests and hands being shown (thanks GATA !)...

Wed, 10/31/2012 - 18:02 | 2935811 Karl von Bahnhof
Karl von Bahnhof's picture

Any volcano close the ecuador? Or a shore suitable for tsunami? Assange in the closet?

Wed, 10/31/2012 - 18:26 | 2935872 HardwoodAg
HardwoodAg's picture

U must not have gotten the memo. The HMS Bounty (replica) was chartered by the chairsatan

Wed, 10/31/2012 - 19:18 | 2935987 Ljoot
Ljoot's picture

My sock drawer was on that boat. Shame.

 

Wed, 10/31/2012 - 21:38 | 2936382 Buck Johnson
Buck Johnson's picture

The game is ending and people are running for the door now.

Wed, 10/31/2012 - 17:28 | 2935729 Jason T
Jason T's picture

So it begins...again. lol

Wed, 10/31/2012 - 17:39 | 2935756 Induced Coma
Induced Coma's picture

Something Dreadful this way comes...

 

IC

Wed, 10/31/2012 - 20:00 | 2936078 slyhill
slyhill's picture

Right... Chavez?

Wed, 10/31/2012 - 21:55 | 2936419 Lore
Lore's picture

Why only a third?  Why don't they simply repatriate it all in one shot?  By analogy, why wait until just before Halloween to shop for candy, when you risk finding the store shelves empty? 

Wed, 10/31/2012 - 17:29 | 2935731 Thecomingcollapse
Thecomingcollapse's picture

One can only hope!

Wed, 10/31/2012 - 17:30 | 2935733 akak
akak's picture

Didn't "it" begin with Venezuela repatriating their much larger foreign gold holdings?

Wed, 10/31/2012 - 18:06 | 2935820 XitSam
XitSam's picture

Musical golden chairs, bitchez. When the music stops ....

Wed, 10/31/2012 - 19:28 | 2936004 Freegolder
Freegolder's picture

When the music stops......

'and the myth that is the overcollateralization of hard money by central banks will promptly come to an abrupt, bitter and, likely, quite violent end.'

 

So, some are still viewing gold as 'hard money'?

No, gold is just an asset, nothing to do with money, and is at its best when left out of the monetary system.

You might want to take a look at the design of the Euro, where its gold reserves are marked to market every quarter, as a reserve holding, a clear display of the wealth of the Eurosystem.

It's the next stage in the world's monetary development, and it is a wonder ZH ignores the issue, I have never seen them discuss the monetary developments contained within the Euro, the world's greatest ever currency.

 

A rising gold price is great for the Euro, but a real pain for the dollar. Hence all of the paper gold to keep the price down.

Thu, 11/01/2012 - 00:14 | 2936702 XitSam
XitSam's picture

Why I think I detect a true disciple of fofoa. Someone who believes that the Euro is partially backed by gold (because they print a report). And just where is the gold that backs the Euro? Germany says its gold is in London, Paris and NY Fed, but they haven't checked in a recent decade. And they will bring home 150 tons in the next three years. That ought to debunk the doubters, right? When the music stops and Germany is left grasping a bundle of rehypothecated IOUs, what will the oh, so clever European central banks do then?

Thu, 11/01/2012 - 00:31 | 2936727 akak
akak's picture

 

I have never seen them discuss the monetary developments contained within the Euro, the world's greatest ever currency.

I thinkI just threw up in my mouth a little.

Truly, if you believe that, I feel sorry for you, as you are obviously as brainwashed as any garden-variety statist, and are apparently, if unknowingly, suffering from classic Stockholm Syndrome.

Wed, 10/31/2012 - 18:17 | 2935852 TrillionDollarBoner
TrillionDollarBoner's picture

"Didn't "it" begin with Venezuela repatriating their much larger foreign gold holdings?"

 

It continues indefinitely, bitchez

Wed, 10/31/2012 - 18:24 | 2935865 jonjon831983
jonjon831983's picture

Indefinitely, bitchez until there's none left to repatriate and the next step is to invade each other for more gold?

Wed, 10/31/2012 - 20:37 | 2936190 The Fonz...befo...
The Fonz...before shark jump's picture

And what did that take? 10 months to fully realize? Wait until the repatriation orders come flying in...

I remember spott saying how long it took to secure the physical for his funds...and this was during less volatile times.... It took over a year and the bars came to him stamped from all over the world....wasn't just sitting in one place....

Wed, 10/31/2012 - 17:30 | 2935735 disabledvet
disabledvet's picture

Didn't this Government just throw Chevron under the bus? Wow...who knew. "Ecuador...trying their hand at extortion." I think the bigger story is Petrobas missing by a country mile.

Wed, 10/31/2012 - 17:31 | 2935736 Gringo Viejo
Gringo Viejo's picture

This should get ugly..............

Wed, 10/31/2012 - 17:32 | 2935737 kill switch
kill switch's picture

GOLD I love it's color!!! Auric Goldfinger!! and Kill Switch!!

Wed, 10/31/2012 - 17:31 | 2935739 Captain Benny
Captain Benny's picture

Lets not forget that Venezuela already is demanding their gold back too!

Wed, 10/31/2012 - 17:35 | 2935751 negative rates
negative rates's picture

Have Ben switch the color over to gold backs and pay um off with crispies.

Wed, 10/31/2012 - 18:41 | 2935899 knukles
knukles's picture

Hugo already got all his gold back.
Old news.

Wed, 10/31/2012 - 20:10 | 2936098 Urban Redneck
Urban Redneck's picture

But Germany actually hasn't gotten its gold back, and they are now politely letting other States cut in line...

Wed, 10/31/2012 - 21:48 | 2936404 JLee2027
JLee2027's picture

And Merkel is quiet about it, meaning she knows the Gold is long gone.

Thu, 11/01/2012 - 19:10 | 2939270 Tompooz
Tompooz's picture

Merkel is quiet about it, because she knows that the obligation to come up with Germany's gold will not disappear. The Germans can be patient and make the best of the Fed's and London's discomfort. They will get "zeir Gold".  Weaker parties will be vaporized first.

Wed, 10/31/2012 - 17:32 | 2935741 TruthInSunshine
TruthInSunshine's picture

If there's a run on the illusory frauds that constitute the Federal Reserve "Bank" and "Bank" of England, whereby a significant number of sovereigns really do request actual, physical repatriation of their gold stocks that are being held on custodial bailment arrangements in New York City and in London, expect a war or some other major global geopolitical event to break out shortly.

Wed, 10/31/2012 - 17:32 | 2935743 lolmao500
lolmao500's picture

Just one third?

Wed, 10/31/2012 - 17:44 | 2935765 Kitler
Kitler's picture

There is a backlog at the electroplaters... you can't just paint that shit on the tungsten you know.

Wed, 10/31/2012 - 17:33 | 2935745 CunnyFunt
CunnyFunt's picture

Soon we will be told that Ecuador harbors terr'ists and is building a nuke.

Wed, 10/31/2012 - 17:51 | 2935776 Kitler
Kitler's picture

http://www.reuters.com/article/2012/10/31/us-ecuador-chevron-idUSBRE89U1...

Correct. They want $19 billion in damages from Chevron. Now they are official terrorists for wanting that and 1.7 bill of their own gold back. Bloody communists... Hillary is going to tear them a new one.

Wed, 10/31/2012 - 18:26 | 2935871 11b40
11b40's picture

Why not.  After all, Chevron is flush with excess cash.  They must be, to have just written a check last week to the House Republicans for $2.5 Mil.

http://www.hillbillyreport.org/diary/4244/chevron-gives-25-million-to-boehners-house-republicans-i-wonder-why-they-did-that

 

Wed, 10/31/2012 - 17:50 | 2935785 Enslavethechild...
EnslavethechildrenforBen's picture

And their gubment's supressen em so we gots to install freedom and democrasyz

Wed, 10/31/2012 - 18:25 | 2935867 groundedkiwi
groundedkiwi's picture

Hillary no longer uses the term freedom and democracy. Its now democracy and the rule of law...... and thevlaws they are a changin

Wed, 10/31/2012 - 18:43 | 2935904 knukles
knukles's picture

"rule of law"

Ha ha ha ha ha ha ha

 

Horseshit horseshit horseshit
Horseshit horseshit horseshit
Horseshit horseshit horseshit
Horseshit horseshit horseshit
Horseshit horseshit horseshit
Horseshit horseshit horseshit
Horseshit horseshit horseshit

 

Doublespeak

Wed, 10/31/2012 - 18:46 | 2935913 akak
akak's picture

That's correct: "The Rule of Law".

 

What Hillary is not telling us, though, is that she is referring to "The Rule of (John) Law".

Wed, 10/31/2012 - 18:55 | 2935938 JPM Hater001
JPM Hater001's picture

Http:/bombecuadortostopthegoldrun.com just sold on godaddy.com

Wed, 10/31/2012 - 17:32 | 2935746 h0oS
h0oS's picture

Long on Gold, long on silver, long on Tungsten, short on toilet paper and I don't mean I have a smelly ass...

Wed, 10/31/2012 - 17:33 | 2935747 dick cheneys ghost
dick cheneys ghost's picture

Bye Bye Miss American Pie

Wed, 10/31/2012 - 17:42 | 2935763 akak
akak's picture

Drove my Corzine to the bullion bank but their gold vaults were dry

And bad ol' banksters waved the gold price 'bye bye'

Singing "this'll be the day that I die, this'll be the day that I die".

Wed, 10/31/2012 - 17:35 | 2935750 semperfi
semperfi's picture

popcorn time?  I'm not getting my hopes up quite yet.

Wed, 10/31/2012 - 17:43 | 2935766 ThirdWorldDude
ThirdWorldDude's picture

Popcorn can wait, still busy stacking ABCD here...

Wed, 10/31/2012 - 17:37 | 2935753 yogibear
yogibear's picture

LOL, 

The suckers are wondering if they have been scammed.

Look at the bright side you can gold plate your light bulbs and have plenty of tungsten for the filaments.

What, you gonna fight the US if you have been scammed? Obama, Bernanke and Dudley will laugh at you while they send you home.

Wed, 10/31/2012 - 18:45 | 2935912 knukles
knukles's picture

Send you to your New Home at some involuntary protective custory high security work camp

Wed, 10/31/2012 - 17:37 | 2935754 SillySalesmanQu...
SillySalesmanQuestion's picture

I dream every night of banksters and CEO's jumping out of tall buildings with tungsten parachutes.

Wed, 10/31/2012 - 17:57 | 2935779 akak
akak's picture

That would be much too quick and merciful a death for the likes of them.

My daydream: put them, separately, into seamless vats filled with an inch or two of concentrated sulfuric acid, constantly replenished ---- and enjoy their screams over the following many hours as they slowly dissolve, feet first, and sink down into the acid.

 

EDIT: The acid-containing vaults should, of course, be lined with gold (which is unaffected by sulfuric acid), providing them with a certain irony to contemplate in their final moments.

Wed, 10/31/2012 - 18:02 | 2935809 malikai
malikai's picture

Holy shit man..

Wed, 10/31/2012 - 18:11 | 2935836 toothpicker
toothpicker's picture

Softy!

Wed, 10/31/2012 - 18:26 | 2935869 CH1
CH1's picture

Damn, a lot of anger there!

Wed, 10/31/2012 - 18:33 | 2935888 akak
akak's picture

Actually, it is just the very old residue of a conversation that I participated in as a chemistry undergraduate many years ago, in which we idly competed to see who could come up with the most gruesome torture we could imagine.

I think I won the contest, as I recall.

Wed, 10/31/2012 - 18:55 | 2935940 Conax
Conax's picture

You win.. that would be worse than sliding down a 40 foot razor blade into a vat of iodine.

Wed, 10/31/2012 - 19:17 | 2935983 Thecomingcollapse
Thecomingcollapse's picture

I actually got shivers imagining that one... Damn Dude!

Thu, 11/01/2012 - 04:41 | 2936863 Conax
Conax's picture

I heard it in the Air force. They are a twisted bunch.

Thu, 11/01/2012 - 13:40 | 2938103 JimBowie1958
JimBowie1958's picture

Airmen are novices in this area.

Imagine having your skin peeeled back on your back and chest, cut off, then your body being doused with boiling oil, then being sawed in half upside down starting at the groin.  That was mideival 'harsh interogation'.

Wed, 10/31/2012 - 19:42 | 2936033 knightowl77
knightowl77's picture

I think they would bleed out before their ankles dissolved??? But still inventive....

 

Drawn and quartered worked well in the Medieval times and might suit our purpose....

Wed, 10/31/2012 - 23:41 | 2936652 bunnyswanson
bunnyswanson's picture

http://www.privacysos.org/node/865  This is why there is anger, CH1. 

Wed, 10/31/2012 - 18:47 | 2935918 knukles
knukles's picture

A warm Thorazine and Lorazepam enema would help

Wed, 10/31/2012 - 21:05 | 2936283 unrulian
unrulian's picture

i know where to start...we could call it a "Corzenema"

Wed, 10/31/2012 - 17:41 | 2935755 Pseudo Anonym
Pseudo Anonym's picture

well, of course

So yesterday: Germany... today: Ecuador... tomorrow: the World?

the comments, reports, articles re phys gold being compromised would scare the shit out of anybody; right or wrong.

also, let's not forget good ol' hugo chavez who started it all

Wed, 10/31/2012 - 17:40 | 2935757 max2205
max2205's picture

Where do they think they are gonna get 29 tons

Thu, 11/01/2012 - 07:51 | 2937014 Zwelgje
Zwelgje's picture

Syria?

Wed, 10/31/2012 - 17:40 | 2935759 praps
praps's picture

Easily solved.  Just confiscate all the gold.

Wed, 10/31/2012 - 17:40 | 2935760 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

We here in the Royal Principality of Englandistan feel no desire to repatriate our gold since our previous chancellor Gordon Brown saw no possible benefit in holding gold and decided to sell over half the countries reserves for an average of $300/oz using the proceeds to buy dollars and Euros.So we are way ahead of everyone in finding out that we are broke,deciding to avoid the messy drawn out process and just going straight to insolvency.Highly recommended.

Wed, 10/31/2012 - 17:45 | 2935771 Tyler Durden
Tyler Durden's picture

+1

Wed, 10/31/2012 - 18:19 | 2935855 Bullionaire
Bullionaire's picture

Wow...a +1 from TD themselves. Impressive.

Wed, 10/31/2012 - 18:52 | 2935929 THX 1178
THX 1178's picture

Praise from caesar...

Wed, 10/31/2012 - 17:53 | 2935791 h0oS
h0oS's picture

Englandistan! Priceless - Oddly enough, in the Persian speaking world the UK is actually referred to as Englestan. I'm from Londonabad myself ;)

Wed, 10/31/2012 - 18:41 | 2935824 debtor of last ...
debtor of last resort's picture

Tia Maria Golden Brown
Drink it, when the sun goes down

And Hollandistan on place 9 of the world gold holdings, with 90% abroad, part of the net EU contributorzzz, what to expact?

Yeah yeah, Corzined, i know.... Sounds like Van Rompuyed, Sandy'd whatever. Let's party! Let's get this game running faster and faster.

Wed, 10/31/2012 - 18:41 | 2935900 Zadok
Zadok's picture

So, here is a question. Outside of the minor useless eater holdings, where do you think the lions share of the gold actually resides now?

Thu, 11/01/2012 - 03:23 | 2936043 dogbreath
dogbreath's picture

good question.   165 000 tons of above ground stocks.   for being a barbaric relic it sure is a popular thing to steal.  All them pirates and privateers way back, bank robbers, train robbers, looters and embezelers, yamashita's gold.   where did it all go

Wed, 10/31/2012 - 20:04 | 2936085 Dr. Sandi
Dr. Sandi's picture

It's in leaky boats and canoes at the bottom of various streams, lakes and the Seven Seas. Most of it at one time belonged to ZH loyalists.

Wed, 10/31/2012 - 17:45 | 2935769 Treason Season
Treason Season's picture

¡Arriba! ¡Arriba!

Wed, 10/31/2012 - 17:57 | 2935802 cxl9
cxl9's picture

¡Hijo de puta!  ¡Estamos Corzinado!

Wed, 10/31/2012 - 17:48 | 2935770 news printer
news printer's picture

Lagarde is coming with paper money but for Egyptians more precious is Egypt gold

Egypt stocks take further fall even as IMF talks restart

On Tuesday, an Egyptian court ordered a halt to local operations of international gold producer Centamin, saying the contract signed between the firm and the government was invalid.

Wed, 10/31/2012 - 17:46 | 2935772 Pseudo Anonym
Pseudo Anonym's picture

iran, here we come

all it takes is for more and more banks to join the bandwagon and demand delivery

bombs away!

Wed, 10/31/2012 - 17:48 | 2935778 kito
kito's picture

hey tyler, im sorry, but i dont see where this story has anything to do with ecuador's gold. this is an attempt to bring the private banking cartels holdings back home to prevent outflow of dollars. how do you equate this news with ecuador's gold holdings?...............................

Wed, 10/31/2012 - 17:54 | 2935794 akak
akak's picture

Hmmmm ...... good point.

Wed, 10/31/2012 - 18:10 | 2935832 kito
kito's picture

i feel a little guilty correcting tyler, but we have to stick with the facts. the private banking cartel in ecuador holds much of their reserves outside the country, and correa is trying to bring some of that money back home. i dont see the connection to ecuador's gold reserves.....................

Wed, 10/31/2012 - 20:07 | 2936087 Dr. Sandi
Dr. Sandi's picture

The tiny part of me that is naturally suspicious says that the real reason to bring the shiny home has nothing to do with mistrust of offshore vaulting.

Methinks it's a lot easier to 'acquire' solid gold in the state run bank than from some vault in the Magical Land of America.

Wed, 10/31/2012 - 18:14 | 2935845 SHEEPFUKKER
SHEEPFUKKER's picture

That is THE point.  None of the central bankers gold is the citizens gold. It's all an illusionary mind f'ing. 

Wed, 10/31/2012 - 18:22 | 2935860 kito
kito's picture

not true. you know not of what you speak. this has nothing to do with gold. this is private banks holding dollar reserves outside the country, which correa wants to repatriate. period. if correa wants gold, he could simply nationalize the gold mines from kinross.........................

Wed, 10/31/2012 - 18:53 | 2935934 SHEEPFUKKER
SHEEPFUKKER's picture

Ouch, a ZH smackdown.  Thanks for explaining it to me. ;-)

Wed, 10/31/2012 - 20:04 | 2936084 Tyler Durden
Tyler Durden's picture

"an attempt to bring the private banking cartels holdings back home"

This includes all assets. 

Of course one can define it as preservation of capital flows. Obviously the whole point is to ringfence the "capital" domestically: without the gold the capital will outflow indefinitely. Just ask Germany, or at least, divine based on their actions, if not their talk.

The bottom line is the same as the motive behind Germany: bring the gold locally in case one needs alternative "reserve" liquidity.

The underlying logic is the same.

Wed, 10/31/2012 - 20:09 | 2936093 Dr. Sandi
Dr. Sandi's picture

Steal it locally, steal it internationally. Just STEAL it!

Excuse me, I mean, just acquire it for the national treasury on behalf of the nation's citizens.

Wed, 10/31/2012 - 21:14 | 2936315 kito
kito's picture

tyler...its your site...so we will agree to disagree..........

Wed, 10/31/2012 - 22:19 | 2936482 Quazi Mohammad ...
Quazi Mohammad Rezwanul Ahsan Nafis's picture

Soooo hungry.

Thu, 11/01/2012 - 11:43 | 2937649 kito
kito's picture

LOL tyler............................

Wed, 10/31/2012 - 17:51 | 2935788 yogibear
yogibear's picture

LOL, surprise, "We don't have it!"

 

That will show these countries for entrusting their gold in financially irresposible countires. Guess the gig is up.

Wed, 10/31/2012 - 17:55 | 2935797 Banksters
Banksters's picture

We can't have gold based money. That shit is too expensive! And behold the age of state sanctioned fraud...

Wed, 10/31/2012 - 17:56 | 2935800 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

I don't know what you're complaining about. Any IOUs are as good as gold as illustrated in this documentary clip...

 

http://www.youtube.com/watch?v=KBl1zR4oXys

Wed, 10/31/2012 - 17:56 | 2935801 Verum
Verum's picture

No where in that Bloomberg summary does it say that they are demanding the physical.  If they need the funds to support growth than cash (on 'redemption') will suffice, yes?

Wed, 10/31/2012 - 17:58 | 2935805 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It begins? 

It began with Hugo awhile ago.

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