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Bill Gross Gets It
Last night, when breaking the Buba repatriation story, we summarized it simply as follows "in brief: this is a momentous development, one which may signify that the regime of mutual assured and very much telegraphed - because if the central banks don't have faith in one another, why should anyone else? - trust in central banks by other central banks is ending." We are happy that the implicit message is so clear that everyone now gets it, including Bill Gross:
Gross: Report claims Germany moving gold from NY/Paris back to Frankfurt. Central banks don’t trust each other?
— PIMCO (@PIMCO) January 15, 2013
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I am sure BG gets it and appopriately bought some 5yr treasuries as a hedge.
Trust, but verify. AKA, no. lol.
"Hans...bubby! I'm ya white knight."
v
Gold über alles
Next SLV and GLD shareholders will sell and take delivery of physical - unless you absolutely trust JPM and HSBC.
Goodbye leveraged paper exchanges like LBMA and COMEX.
German financial crisis engineering
When there is nothing left for the rich to steal from the poor...
he probably reads ZH
They will take delivery in GLD.
The Bundesrechnungshof would hang them higher!:)
In Germany even the Bundesbank has to do a regular yearly inventory check.
Nearly impossible if the physical gold is stored outside their own vaults.
Jim Sinclair gets it too...
http://www.planbeconomics.com/2013/01/15/jim-sinclair-german-bundesbank-...
Long gold.
God bless the day we can really figure out who is listening to who and how they are playing thier book. I suspect the Tyler's know better than most though.
Didn't Bernanke say he say he reads blogs during his Tweetfest?
Chances are Bernanke reads ZeroHedge too.
Your "F-U Bernanke" posts are probably well directed here.
Whatever else you may think of him, be assured that Bernanke is NOT a fool. You damm right he at least skims Zerohedge.
In that case:
FUCK YOU BERNANKE!
i'm wondering how the netherlands, with about 500 tons of gold in foreign hands, is feeling about now. does anyone know how much of the swiss 1,145 tons of gold reserves (2008) are in foreign hands? the big holders italy and france (2,400+ tons each) are both insolvent so may be held for ransom by the ecb, but not all the nations' gold under 33 liberty street are as easily subject to confiscation (?).
"They will begin to steal from each other??
Question: "How many hedge funds can fit through AAPL's Emergency Exit?"
mark 10:24-25
Mark 10:24-25
King James Version (KJV)
24 And the disciples were astonished at his words. But Jesus answereth again, and saith unto them, Children, how hard is it for them that trust in riches to enter into the kingdom of God!
25 It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.
Agreed ... an easy way to counter the EU CDS games played from NY and London.
Pinto
Unless you own 100,000 shares (about $15 million) you cannot take posession. Even then you need the cooperation of an Authorized Participant. GLD is NOT a way to get physical gold, it is a way to bet on the price of gold. To get physical gold you should just buy physical gold.
Gross gets it and so do most on ZH. Fiat money is a disater!
http://confoundedinterest.wordpress.com/2013/01/15/game-of-thrones-gold-...
Many others are starting to "get it" as well. Where I come from, when there is smoke, there is fire.
From German Spiegel Online, Oct 2012
For decades, German central bankers have contented themselves with written affirmations from their American colleagues that the gold still remains where it is said to be stored. According to the report, the bar list from New York stems from "1979/1980." The report also noted that the Federal Reserve Bank of New York refuses to allow the gold's owners to view their own reserves.
Not surprisingly, this prompted strong reactions in Berlin: The relevant Bundesbank board member Carl-Ludwig Thiele was summoned to Berlin to provide an explanation to the parliamentary budget committee. Heinz-Peter Haustein of the business-friendly Free Democratic Party (FDP) was even quoted by Germany's mass-circulation Bild newspaper as saying that "all the gold has to be shipped back."
As a result, in addition to safeguarding the reserves of over 60 countries, the Federal Reserve Bank of New York continues to hold 1,536 metric tons of German gold -- or nearly half of Berlin's reserves. This enormous hoard of gold is stored in the fifth subfloor of the bank's building on Liberty Street, 25 meters (80 feet) below street level, and 15 meters below sea level. According to the bank's website, the vault rests on the bedrock of Manhattan Island.
Tourists are allowed to venture below street level to see the vault. After descending in an elevator, they stand in front of an enormous steel cylinder that pivots like a door in a 140-ton steel-and-concrete frame. But not even the owners are allowed to view their own gold. According to the Federal Audit Office report, the Fed explained that "in the interest of security and of the control process" no "viewings" are possible.
Finally, in 2007, "following numerous enquiries," Bundesbank staff members were allowed to see the facility, but they reportedly only made it to the anteroom of the German reserves.
In fact, auditors from the Bundesbank made a second visit in May 2011. This time one of the nine compartments was also opened, in which the German gold bars are densely stacked. A few were pulled out and weighed. But this part of the report has been blacked out -- out of consideration for the Federal Reserve Bank of New York.
"I would like more transparency on the issue," says Bundesbank board member Thiele. The Americans are very sensitive, though, when it comes to security procedures in their gold storage facilities. In their second major depository, the legendary Fort Knox, practically no one in recent decades has been allowed to view the gold reserves."
http://m.spiegel.de/international/germany/a-864068.html#spRedirectedFrom...
.
no peeking, it's all under control. !!
perception, managed.
the wonderful wizard of oz said to not question your perception
The Golden Rule.
"Whoever has the Gold, makes the rules."
They just don't want anyone tunneling in there or otherwise eyeballing the security measures. It is called "security by obscurity", and it usually means there are hidden flaws in the security.
I especially liked this quote, "A few were pulled out and weighed. But this part of the report has been blacked out -- out of consideration for the Federal Reserve Bank of New York."
What happens in the FRBNY, stays in the FRBNY!
Gross makes money off Fiat. He is a bond guy, after all. And he supported the Trillion Dollar Coin. No doubt, he was talking his book, since minting TDCs would drive interest rates negative and make Bill Gross a fortune.
@ Supernova Born, + mucho. Au and Pt come from the stars blowing up...
I am waiting to see if there will be a Press Conference by the Bundesbank tomorrow (as a commenter replied in the "Germany wants their gold back" thread earlier today). If this whole thing is true about Germany wanting their gold back, it will be what Tyler wrote: the biggest financial story of the year.
DAS RHEINGOLD ZURUECK NACH DEUTSCHLAND!
Der Schatz der Nibelungen and Richard Wagner's "Ring der Nibelungen" have been on my mind recently.
Siegfried will slay the dragon to get the treasure (back to Germany).
^ [post fail]
It's good to hear Gross say this out loud, but it can't come as too much of a surprise.
In 2008, inter-bank lending effectively ended not because the banks didn't know how risky other banks were, but because they did know -- they knew that everyone had the same crappy balance sheet and outlook.
Now that all the risk has been pawned off on the taxpayers, the central banks are coming to the same conclusion: "our book looks awful -- and that means theirs does too."
"...the world’s six largest central banks have collectively issued six trillion dollars’ worth of checks since the beginning of 2009 in order to stem private sector delevering. Treasury credit is being backed with central bank credit with the interest then remitted to its issuer. Should interest rates rise and losses accrue to the Fed’s portfolio, they record it as an accounting liability owed to the Treasury, which need never be paid back. This is about as good as it can get folks. Money for nothing. Debt for free." - Bill Gross
which only leaves one question
why are they taxing us>?
because that's what we're for - it's in the contract.
Gross recently loaded up on MBS and is raking it in. He made a mistake shorting bonds before
but has made up for his past follies. It is good to learn from your mistakes. Zorba has learned
from his mistakes. Zorba will no longer date women with large Adams apples.
Die Hard references always get +1
Fucking right, doggie!!
Nice twitter questions yesterday.
Thanks, shockingly none of them got asked.
Maybe next time.
My guess is Ben Shalom will never do that again.
Well I've been thinking about that. Why would Chairsatan go to twitter to "answer" questions? First off a grown man, never mind he is one of the most powerful men in the world, but a grown man using twitter, I mean come on.
Second what did he try to accomplish by going on twitter? Anyone with a turd for a brain could have seen what a PR disaster the whole idea was so why do it?
I think that this twitter stunt was all masterminded by a group smarter than Chairsatan. Chairsatan was being used and he didn't even know it.
Eventually when the economy starts getting really dark to even the most non interested Joe Sixpack the twitter stunt will come full circle.
When it's clear to all that the economy is in the tank then TPTB will come out strong against Ben and they will label him as unstable, a crazy and they will use the twitter stunt as part of the picture they paint against him
TPTB will insist that Ben began to run amok and he became uncontrollable. They will plead for support and cooperation from the public insisting that with Ben now out of the picture they can get the economy back on track and things will turn around because now that crazy Ben has been taken out of the picture.
Just watch this is what will happen. Ben is riding high now but who knows in a few months hell even maybe a few weeks he will be thrown under the bus. The twitter stunt is just a small part of the bigger picture. I wouldn't be surprised that government agencies locate kiddie porn on Ben's computer. That may start the whole downfall for him.i
It was orchestrated by a University mostly funded by "loan a student a bubble".
The "rogue" commentators know Ben Shalom is just a kazoo, as do his handlers.
It' was still epic.
They underestimated us once again. No conspiracy necessary.
@jumbo
thats exactly whats going to happen. i've been saying for a while that they are going to need a "volcker" to come in after the bernank or this dollar experiment is going to demonstrate exponential.
Here's a video recap of the Bernanke Q & A:
http://www.youtube.com/watch?v=YcDlkZkPb6g
Western Central banks are starting to scramble. They are getting scared.
Keep voting with your dollars. Keep stacking gold and silver.
The Bundesbank has little reason to trust a printing crazy ECB, and why should they?
The final recourse for the Germans is to prepare their gold holdings as the ultimate trump card in case the ECB prints itself into oblivion. A prudent course of action for the Bundesbank is to prepare the presses for the New Deutchemark, which if backed by gold, could vie for the world's reserve currency if the rest of the developed world becomes fiat unwound.
Of course, one actually needs to have the gold be real and truly accessable in storage before the masses embrace it with any confidence. It's not that the Bundesbank doesn't trust the Federal Reserve, moreso than the Bundesbank making prudent preparations in the event the developed world becomes unglued with currency crises.
And if gold isn't money, as hypothisized by our brilliant PhD in the Keynesian Realm, why does the Federal Reserve and our own goverment go though such intricate processes to store and protect it?
Yeah, if I were the Germans, I'd be more than willing take that storage burden off of their hands.
but..but, gold is backed by nothing.
VERY brainwashed reporter
http://www.youtube.com/watch?v=UZXX5i8tj5s (0:49)
All that matters is that I don't.
If you changed your name to "LongBall" we could call you Lance!
Central banks are the new preppers.
Unfortunately for them, "Chance favors the prepared mind" = keep moar ink on hand.
Put another way, the Newport Beach, Ca blogging powerhouse known as PIMCO is now using ZeroHedge for Twitter idea formation and marketing ideas...
Way to leverage the retail folks, there Billy Baby!!!
"From my dead cold hands"!
oh, how Gross!
Bill Gross knows that a treasury bubble is going to bust soon but he can't say because of his position in the financial system and being one of the buyers of last resort.
Bollox
They are all good friends.
I could have cashed a Sterling cheque in the Berlin of 1916.
With friends like that, who needs enemas?
Merkel usually looks like she needs one
Turpentine no doubt.
An ill-afforded luxury in such frugal times, albeit a vastly needed one amidst such testiness.
I tend to agree on calling this more theater.
We are crashing upwards... Germany understands that. The pickle now is if U.S. wants paper to have value, they have to put on the brakes... however, it's probably too late.
I like to ask cash register jockeys if they, whatever store I happed to be at, still accepts Federal Reserve Notes. While part of this is a little educational jab at those I interact with, it usually generates comments from others nearby in the line. Comments such as, 'It IS just paper you know" or "The print that crap out of nothing." The population is waking up to this fact, but for many of them it is too late to recoup any of their past labors from the bankster class ass fucking, cunt faced, whore mongering, asshat, fucktard, anal fisting, vulture mother fucking, dog-faced, shit eating, cock sucking, dickheaded evil puss filled, foreskin licking bastards.
Don't hold back Doc, just let it all out.
Dr. Head, I hear ya....but foreskin licking? Dude, that's harsh! :)
francis_sawyer could have made the EXACT same comment [but received a 70-30 'JUNK' ratio]... This, only because the INTELLECTUALS on this site don't see a 'doctor' title in my username...
Carry on Ritchie [post laureate son of yur father, 'Mr. Head']
Lighten up Francis.
OK... 9-6 [on last count]... I stand corrected...
Have a beer...all will be well.
Hey, listen up. Like I said earlier, I'll never junk a man whose name is Francis. That's punishment enough.
Did Doc's tirade blame someone based on the race into which they happened to be born? Last I checked, nobody was born a banker.
I have read many of Dr. Richards posts, and many of yours, Francis. I can truthfully say that you are no Dick Head.
Yeah Doc... how do you really feel?
Who has foreskin anymore... Oh vey!
logged in just to give a +1 to the good dr.
couldn't have said it better.
mfcsso bitchezzs
http://www.youtube.com/watch?v=7MG6TVinHRc
First question when I arrived at the LCS -- do you still accept FRN's (at spot)?
The esteemed Dr. Richard Head said:
Hah! Kudos, my good fellow, I thought I was the only one doing anything like that. I wait until they ask me if I have a [store name du jour] super saver (purchase tracking) card:
"No, just Federal Reserve Notes. Ummm.....you do still accept those, don't you?"
I also carry a Morgan silver dollar in my pocket. When the cashier does the cursory counterfeit test of a $50 or $100 bill:
"It's all fake. You probably haven't ever seen a real dollar come through here."
I pull out the Morgan, letting them hold and examine it, and tell them that I like to have at least one dollar of real money. My parting remarks are usually something like:
"Back when this (the Morgan) came out, two dollars would pay for this cart of groceries. Two of these dollars still will."
Always best to leave them thinking if you can.
Such financial subversion and monetary terrorism will be dealt with harshly under the New World Order.
So true. Which is why civil war in America is nearing inevitability.
Not necessarily, that's what credit cards are for.....to get even!
http://www.youtube.com/watch?v=P12xKZV2iys
@3:10
So Dr., I guess the "Jelly of the Month Club" bonus was less than you had expected?
I wonder if the world will hold the bankers who sold their gold accountable or if we all have to go to war?
Going to war will be how they will have to be held accountable.
This is a GREAT point! Instead of fighting each other we should hunt down the pigs and give them treament Ned Beaty got in Deliverence.
"Squeal like a pig Bennie!!!!"
...and then hang them.
..On You Tube.
The war will BE about the gold.
What does Mohammad from Newport Beach have to say about this?
Die heathen dog worshipers.
"Everyone holding their own physical gold is the new normal."
Does that mean only 1% - 3% of us are normal?
you may be a touch on the high side.
yeah, maybe 100 - 600% on the high side. The retailers still think the GLD is backed by physical.
El Erian only gets trotted out in font of the cameras when They want to spook the two or three remaining retail investors. It's hardly worth the bother any more.
Now all Germany has to do is expel the batshit Muzzies, leave the EU and wait out the rest and rule the post-apocalytic world!
Why would anyone want to expell that fuzzy, green guy that teaches kids Spanish, French, Gernman, and Italian?
Oh wait, you are just a religous zealot extremist collectivising an entire religion to satisfy your diversionary tactics away from the main focus of this article - sound money. Carry on shit head.
Sorry Francis you're fucked...the doc just hit 70-30
80-10 bitchez!
And Esperanto, hundinoj.
Why would they do that? Turks are nice, civilized and rather secular people. And hard working, too. BMWs have never been better!
Plus, no German could live without weekly dose of kebab anymore.
So, get out of that cave more often. World is not such a bad place.
Sans banksters, of course.
Also keep in mind that there are 500.000 Alevi in Germany. That is very important. They are almost like Westerners. You can marry an Alevi girl without converting to Islam. Alevis are very different compared to the rest of the Muslim community. So different that most Muslims regard them as infidels.
They are the second largest group of Muslims in Germany.
The most dangerous group of Muslims in Germany is a tiny minority. The Salafi. There about 5.000 of them in Germany. But they are the talk of the town. They appear in talk shows, have a strong internet presence. You know - I have nothing against muslims or other religious communities. But the Salafi will never fit into our society and we should kick them out as soon as possible.
Does this mean none of the other CBs plan to attend the Fed's secret centennial birthday party ?
Do our Asian slave nations, such as China and Japan, have their barbarous relic stored in the Land of Brave?
No, but I bet they would like Obama to crack open the gold window for awhile. I am sure they are getting tired of buying US gold in one oz. coins.
bbbbbbbbbbbbbbut i thought thieves always trusted other thieves - code of honor or sumting!
Let's put it this way: I have (or HAD) a BOATLOAD of silver. Now, I don't know what to do with it, where to keep it, so I ask my relatives: "Hey, brother-in-law, would you do me a favor and hold some of these bars and coins for me? I know I can trust you, you won't spend it. I just don't want it around me all the time, the temptation's too much, the risk of theft is too great."
Spread it around to several in-laws. Question: Will it all be returned upon request? A:________________________________________
I find it hard to believe that they ever trusted each other. This says something much worse, I believe. Of course, had I been born when France sent ships to collect their gold, I would have said the same thing... and would have been wrong.
We had troops armed to the teeth in Deutscheland.
Now they're a buncha logistical support operations for other battlefields in the Long War.
I find it hard to believe that they ever trusted each other.
I don't believe they ever did. Keeping gold in the US was a bribe for borrowing dollars and military protection. A "gentlemen's agreement" you might say, that isn't from trust, just an even exchange of "favors".
It appears Germany no longer feels they're getting an even exchange. They see dollars losing value from Fed's uncontrolled printing last 4 yrs with no indication it's going to stop. They know Fed is in a race to the bottom to debase the US dollar faster than other currencies, making German products more expensive here. All they have left now is military protection which will end when Germany transfers their loyalty to the growing Asian alliance, which they know is the smart thing to do, seeing how that alliance is gonna put the smackdown on our corrupt govt. I suspect they know how far along that process is, way better than we do.
Wha?? Are you suggesting that Germany-the EU would transfer loyalty? Damn, that would be a bitch (for me).
I suspect another reason Germany wants their gold back is they anticipate being part of a new pan-Asian gold backed currency. Not a basket of currencies, a single currency backed by China's gold, Russia's gold, India's gold, Germany's gold, Switzerland's gold, etc
...along with their combined nuclear arsenals, let's not forget that part.
Look at the big picture. Everybody in Asia is buying up all the gold they can, and Germany wants theirs back all of a sudden.
Why? Simple. A pan-Asian gold backed currency is coming.
It'll destroy the Euro and US dollar instantly.
Germany will rocket to top dog in Europe, backed up by the combined nuclear arsenals of Russia, China, India, maybe Pakistan too. They'll rebuild their conventional military in a flash and be given all the nukes they want. They'll rule Europe overnight then set their sights on middle east oil, flooding into that area, kicking America out. Israhell will be "disarmed", relieved of all their nukes, told to shut the fuck up and behave or be nuked off the planet.
The Roaches are now getting anxious.
Do they, or don't they (have any gold)? Only their hair dressers know for sure!
I wonder if he will add another .oooooo1% to his .00000003% PM allocation.
War!...it's just another type of tradition.
The Germans do not trust Oba-Mao Tse Mugabe or The Ben Bernank.
Hope & Change
Hemp & Choom you mean
I think you mean Cheats and Choom
Rope and Chains works for me.
F TV and F Hollywood?
+100
Is the gold being sent to Germany from the FED or is it the stuff they picked up in Lybia and other places? Or is it just an announcement?
It appears that de Gaulle wasn't so crazy after all when he used to cash in all his US dollars for gold and just befoe the closure of the gold window he even sent a French frigate to pick one load up.
de Gaulle and Nixon 15 August 1971... that was my first thought, too... but...
does our Buba REALLY believe there is any physical gold in ANY central bank = tooth fairy??????????
or do they know that real patriation would be the end of the world as we know it????
I really have absolutely no clue what Buba wants...
the fed and jpm are one and the same. only a fool would trust jpm.
Finally, someone said it
~~~
Jerry Maguire
who will be left holding the bag...
My guess would be the American pubic......I mean public. Pubic since we are getting fucked.
Maybe if I give them all my guns, and rat on others in my neighborhood that have guns I can make enough reward money to pay for rent, food and a trip to Cancun someday.
I would imagine SLV, GLD and all the others. CB's get the allocated stuff and what's left will be subject to lawsuits over lease arrangements and posession lawsuits. Good luck ETF's.
And once they figure out where the rest of the real stuff is, the CB will seize it
"Trust me" said the spider to the fly.
The Central Bank wars will be fun to watch.
Hilarious that Germany is asking for their tangible gold assets Buffet calls "a barbarous relic".
if anyone is a true barbarous relic it would be Buffet. A corporate welfare monger who's existence is relative to the theft by the state.
Buffet is an open faced roast beef sandwich.....if ya know what I mean.
He's not alone, and with all that dry powder stored up, he could last a bit longer than many others.
we shall see who has what when the tide goes out.
gotta a hunch, there aint gonna be enuf to go around.
seems like a signal to add as much as one afford...
jmfo
He clearly doesn't understand Germany's love of tradition.
Or their love of barbarism.
"No honor among thieves" ?
I'm willing to bet there is more gold in my uncle Chester's mouth then there is in that goddamn vault.
Look, it's just my opinion and I have no proof, but this idea that Central Banks are just figuring out that Gold is money and/or everyone is printing the shit out of their currency is just nonsense. This is a well orchestrated ballet that will show an ever-distressed banking system appear to withdraw into their separate corners until the collapse. What is really going on, IMO, is that they have the gold, they always knew this system would crash. The families behind the banks have accumulated massive amounts of gold. When this goes tits up and the world clamors for a hard currency, or at least one somewhat backed by gold, the families will have historic and massive wealth. There will be no going back to a pure fiat world currency and the ones with the bulk of the gold will be unbelieveably wealthy forever. Everyone, which is most of the rest of the world, will forever be trapped in servitude, period. It is a fantastic con job and one that will go down in the history books.
+1000
I likes the way you thinks
It would be HIGHLY IMPROBABLE that any of those 'families' would be Jewish [now would it]?...
~~~
I say that because they are only less than 1% of the worlds population, it would be STATISTICALLY & MATHEMATICALLY impossible to even CONSIDER such a thing...
How many 'FAMILIES' are we talking about here?... [I only inquire for means of ENTERTAINMENT value ~ I mean, your ratio of UP ARROWS to DOWN ARROWS is 44-0 as we speak... This 'well orchestrated ballet' of which you speak must mean you MUST be on to something]...
~~~
2 'JUNKS' to francis_sawyer say you're FOS... Unless ~ oh wait!
Not only do I agree, I positively hope you are right since its the least worst of the alternatives.
Imagine if these guys genuinely have no idea how a hard, redeemable money system operates. They would genuinely have no idea what to do when it all starts to come apart and we would be powerless to do anything while they screamed their magic fiat formulas louder and louder and wondered why it isn't working anymore.
As much as the restructuring is going to suck for all of us, gold gives us a chance at stability on the other side. Otherwise its gonna be chaos for a very long time.
Can't wait to accept only gold for my soybeans. BRING IT!!!
How about if I'm hungry enough and I just shoot you instead?
That's more likely to happen.
Yup. Those that say "BRING IT!" don't understand how utterly horrific it could get.
You got guns defending your soybeans? Better have A LOT of ammo...the first wave of dead bodies will only give reason for the second,third, fourth wave that knows you have something to defend.