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It Begins: Ecuador Demands Repatriation Of One Third Of Its Gold Holdings
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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We are running low on Tungsten, give them the gold wrapped chocolate coins....
Hey its Halloween, if they can't take a joke...
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.
Donde esta mi oro bitchez?
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?
Damn, just think of how positive that will be for GDP though!
My prediction:
'Why yes of course Ecuador...
...as soon as you hand over Mr. Assange.'
Lets 'democracy' Ecuador.
I foresee Ecuador very shortly joining the official "Axis of Evil" rogue nation list, Obama-style.
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...
Someone please explain to the Equadorians' that gold is mere "tradition" (polite chairman quad b speak for "relic").
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.
Love the sound of drones over Quito in the morning.
Ecuador followed by Venezuela, then Bolivia, and maybe Argentina for a finale.
A latin spring? or perhaps a latin winter?
Assange comment is about as The most unexpectedly true comments I didn't see coming
Kirk: "How's the Ecuadorian Bones?"
McCoy: "He's dead Jim."
Two excellent Points!
I agree with both of Cynthia Myers points.
Hypothecation means never having to say it’s gone.
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.
I am reminded of price discovery bitchez
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.
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!
Then Brazil...
The very last 2 of 200 stars on our flag will be Mexico and Canada
Brazil has been building more roads than the US, and that's without $700B in "shovel-ready" stimulus...
you mean our 11th province will be USAchewan, you're broke Bitchez...
Awww.. who am i kidding so are we
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.
USS Enterprise style. Oops, that is the Iran trigger. Hasn't happened ...yet.
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.
You enjoy meeting FBI agents at your workplace?
Bravo!
central bank bullion vault: a hole in the ground with a lying executive standing next to it..
No-- the economy shuts down when it gets that high-- no money left for discretionary spending.
El tungsteno es seguro en Nueva York.
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!
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!!
Yup. He's spot on. Venezuela, Germany, Holland, Romania and now Ecuador want their gold back.
Gold Run bitchez!!!
" 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...
Turkey on the FDR 1933 tip.
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!
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
Presidents Mills died of natural causes.
What did he think he was doing leaning that far out of the window?
I heard he drowned in a "boating accident"
Link?
Presidents Mills died of natural causes.
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.
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.
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.
Jim Willie is a god.
I only hope 'they' never catch up with him.
I'm still waiting for his 'Morgan Stanley is about to crash!' call to come good.
I'm still working on that crash JPM buy silver bullshit
Buying silver is a great idea, whether JPM crashes or not!
I second that emotion.
Yeah but I fear a lot of the repatriating countries will just sell their gold to keep their respective ponzis going
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.
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.
11 - 12 years ago this was all too complex, now, after so much converging of interests and hands being shown (thanks GATA !)...
Any volcano close the ecuador? Or a shore suitable for tsunami? Assange in the closet?
U must not have gotten the memo. The HMS Bounty (replica) was chartered by the chairsatan
My sock drawer was on that boat. Shame.
The game is ending and people are running for the door now.
So it begins...again. lol
Something Dreadful this way comes...
IC
Right... Chavez?
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?
One can only hope!
Didn't "it" begin with Venezuela repatriating their much larger foreign gold holdings?
Musical golden chairs, bitchez. When the music stops ....
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.
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?
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.
"Didn't "it" begin with Venezuela repatriating their much larger foreign gold holdings?"
It continues indefinitely, bitchez
Indefinitely, bitchez until there's none left to repatriate and the next step is to invade each other for more gold?
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....
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.
This should get ugly..............
GOLD I love it's color!!! Auric Goldfinger!! and Kill Switch!!
Lets not forget that Venezuela already is demanding their gold back too!
Have Ben switch the color over to gold backs and pay um off with crispies.
Hugo already got all his gold back.
Old news.
But Germany actually hasn't gotten its gold back, and they are now politely letting other States cut in line...
And Merkel is quiet about it, meaning she knows the Gold is long gone.
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.
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.
Just one third?
There is a backlog at the electroplaters... you can't just paint that shit on the tungsten you know.
Soon we will be told that Ecuador harbors terr'ists and is building a nuke.
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.
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
And their gubment's supressen em so we gots to install freedom and democrasyz
Hillary no longer uses the term freedom and democracy. Its now democracy and the rule of law...... and thevlaws they are a changin
"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
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".
Http:/bombecuadortostopthegoldrun.com just sold on godaddy.com
Long on Gold, long on silver, long on Tungsten, short on toilet paper and I don't mean I have a smelly ass...
Bye Bye Miss American Pie
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".
popcorn time? I'm not getting my hopes up quite yet.
Popcorn can wait, still busy stacking ABCD here...
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.
Send you to your New Home at some involuntary protective custory high security work camp
I dream every night of banksters and CEO's jumping out of tall buildings with tungsten parachutes.
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.
Holy shit man..
Softy!
Damn, a lot of anger there!
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.
You win.. that would be worse than sliding down a 40 foot razor blade into a vat of iodine.
I actually got shivers imagining that one... Damn Dude!
I heard it in the Air force. They are a twisted bunch.
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'.
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....
http://www.privacysos.org/node/865 This is why there is anger, CH1.
A warm Thorazine and Lorazepam enema would help
i know where to start...we could call it a "Corzenema"
well, of course
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
Where do they think they are gonna get 29 tons
Syria?
Easily solved. Just confiscate all the gold.
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.
+1
Wow...a +1 from TD themselves. Impressive.
Praise from caesar...
Englandistan! Priceless - Oddly enough, in the Persian speaking world the UK is actually referred to as Englestan. I'm from Londonabad myself ;)
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.
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?
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
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.
¡Arriba! ¡Arriba!
¡Hijo de puta! ¡Estamos Corzinado!
Lagarde is coming with paper money but for Egyptians more precious is Egypt gold
Egypt stocks take further fall even as IMF talks restartOn 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.
iran, here we come
bombs away!
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?...............................
Hmmmm ...... good point.
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.....................
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.
That is THE point. None of the central bankers gold is the citizens gold. It's all an illusionary mind f'ing.
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.........................
Ouch, a ZH smackdown. Thanks for explaining it to me. ;-)
"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.
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.
tyler...its your site...so we will agree to disagree..........
Soooo hungry.
LOL tyler............................
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.
We can't have gold based money. That shit is too expensive! And behold the age of state sanctioned fraud...
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
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?
It begins?
It began with Hugo awhile ago.