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Gold Leasing: The Case Of The Disappearing Gold

Tyler Durden's picture





 

From Jeff Thomas Of International Man

The Disappearing Gold

During the Cold War, Germany moved much of its gold to New York in case the USSR invaded Germany. It was assumed at that time that the US would be a safer storage location, and of course, they could always ask to have it returned if they wished.

But German citizens have become increasingly worried about the security of the 1,536 tonnes of German gold reputedly held at the Federal Reserve in New York. This has resulted in the Bundesbank pursuing repatriation of the gold, beginning with a request to view it in the basement of the Federal Reserve Building, where it is claimed to reside.

Of course, the German government had received periodic assurances from the Fed that the gold is there; however, the issue began to get a bit sticky recently, when the Fed refused a request for inspection.

The world then raised a collective eyebrow, and, whilst not panicking over this development just yet, closer attention has come to bear, not only on the Fed, but on any institution that is entrusted with the storage of gold for other parties.

Concern spread to Austria, where a question arose in Parliament as to where Austria’s gold is stored. The answer provided was that 80% of it (224.4 tonnes) is in the UK. (It was claimed that the reason for this is that, if a crisis of some kind were to occur, it could be more easily traded from London than from Vienna.)

Seems reasonable enough, except that the return of the gold to Austria, if it were requested, may be a bit difficult, as the gold seems to have been leased out by the UK.

To many, a second eyebrow might go up at this point. Lease out the wealth of another nation? Isn’t this a bit… irresponsible?

The New Gold Shuffle

Not to worry, it’s done all the time. In fact, the practice has been endorsed by none other than Alan Greenspan, former Chairman of the Fed. The gold is leased to a bullion bank, which typically pays one percent interest to the Fed, with a promise to return it on a specified date. The bullion bank then sells the gold on the open market and uses the proceeds to buy Treasury bonds, which will net a three to four percent return.

The nicest thing about such an arrangement is that the lessor continues to claim it on his balance sheet as a line item: “gold and gold receivables.” After all, an asset that we have leased out is still an asset, even if it has now been sold by the lessee.

In effect, this means that, if you bought a gold bar today, it is possible that it is a bar that was shipped from the Bundesbank to the Federal Reserve decades ago and is presently listed by the Fed on its balance sheet as “gold and gold receivables.”

Both you and the Fed are claiming to possess the same gold bar. The fly in the ointment, of course, is that only one bar can be the actual bar. The other is a receivable and therefore is an asset on paper only. This, of course, means that there is less gold in the world than has been claimed. How much less? That’s anyone’s guess.

The New Risks

But even if it became generally known that the Fed (and others) are holding paper, rather than physical gold, couldn’t we carry on as before? What could go wrong? Here are some immediate possibilities:

  • If there were a dramatic rise in the price of gold and the lessor were to call in the return of the gold by the bullion bank, the bullion bank could easily lose far more than the small two to three percent margin it had been enjoying.
  • If there were a crash in the bond market and hyperinflation set in, the bonds that the bullion bank had purchased could become worthless.
  • If the nations who shipped their gold to London and New York for safekeeping were to request their return, the storage banks could only deliver if they were to purchase gold at the current rate. If that rate were significantly above the rate at which the gold had been leased to the bullion banks, the storage banks would sustain a significant, possibly unsustainable, loss.

That’s quite a bit of risk.

In the present market, there are any number of possible triggers that could cause the people of Germany, Austria, or a host of other nations to demand that their gold be returned home. Indeed, pressure is on the increase. The governments who have shipped out their gold for “safekeeping” would have a lot of explaining to do to their constituents, if the storage banks are not forthcoming.

So, is it time for the odiferous effluvium to hit the fan? Not quite yet. Before that occurs, there will still be some dancing around by the Fed and others.

The Fed has already stated, in so many words, “We’re sorry, but we can’t let you have all your gold at one time, but we’d be prepared to send it to you over a period of years.”

For many observers, the present situation should be well beyond the point of the raised eyebrow. It should be glaringly apparent that the amount of gold presently claimed to be in storage in the world’s banks is, to a greater or lesser extent, overstated.

Continuing the Charade

The Bundesbank should, of course, now say, “I’m afraid that’s not good enough. It’s our gold. We’ve advised you how much of it we want back now, and we must insist that you produce it immediately.”

If they were to take this perfectly logical step and the Fed refused, there could be a run on the banks, and, very possibly, within as short a period as twenty-four hours, a worldwide bank holiday might be declared with regard to gold.

However, this is not what will transpire. Neither logic nor sound banking practices are the object here. The object is to maintain the charade that exists within the banking community. The Bundesbank is just as fearful of a run as the Fed and will be only too willing to accept the Fed’s terms.

What must be borne in mind is the root cause of the request. It was not the Bundesbank itself that originally wanted the transfer to take place; it was the German people who, quite rightly, have become distrustful of the fact that their gold has been in New York for so long and want to see it repatriated. It is not the banks who wish to correct the situation. Not one bank wishes to expose the inappropriate practices of any other bank. Their loyalty is to each other and not to their depositors.

So, is that it? Have we heard the last of this issue? I think not. The cat is out of the bag at this point, and the depositors’ distrust and uncertainty will not be quelled by the counter-offer. Tension will continue to mount amongst depositors, and, at some point, the situation will reach an impasse.

All those who presently have gold in a banking institution would be prudent to keep an eye on the present situation. We might consider taking delivery of any gold we have in a bank, wherever it may be. Regardless of what form it is in, from ETFs to allocated gold, we would do well to assess the degree to which we feel our gold is at risk. In doing so, we may determine that a gold account is more at risk in, say, a New York or London bank than a Swiss bank. (Not all banks will be equal in terms of risk.)

If we do resolve to divest ourselves of bank-related precious metal holdings, it would be prudent to take action soon. (Clearly, those who attempt to remove their wealth the day after a run has occurred tend to do less well than those who attempt to remove their wealth the day before the run.)

We might also consider whether a possible run may become systemic, causing a bank holiday on all the bank’s activities, thus freezing any currency that we may have on deposit. We may conclude that it is prudent to only retain in our bank enough money to allow cheques to clear – an amount sufficient to cover a few months’ expenses.

In the near future, we may well find that a significant amount of gold that is claimed to exist in the world will “disappear.” Whilst we cannot control this eventuality, we may be able to save the gold that is being held in our names from disappearing.

 


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Sat, 02/02/2013 - 14:01 | Link to Comment Lets_Eat_Ben
Sat, 02/02/2013 - 14:22 | Link to Comment Manthong
Manthong's picture

I’ll take “Sustain the Unsustainable Loss” for 200, Alex.

Sat, 02/02/2013 - 14:37 | Link to Comment dereksatkinson
dereksatkinson's picture

Harvey Organ's comments...

"Today we had first day notice and what a surprise. We had a massive 1,391,000 million oz of gold stand or 43.26 tonnes of gold. I have been following the gold and silver comex data from the mid 1970's and I have never seen anything like this before. You will recall that this past December we had only 10 tonnes of gold delivered upon. Generally December is the biggest delivery month of the year. The comex is not a physical market. If one needs physical they generally head over to London at the LBMA and purchase the metal over there. The high amounts standing may mean that our gentlemen from Eastern persuasion are having difficulty finding metal and thus they are heading over to our neck of the woods to obtain this very valuable commodity.

The total number of contracts standing for gold is a whopping 13,910 contracts or 1,310,900 oz of gold which translates to 43.26 tonnes of gold I am sure that Blythe will be one busy girl these next few weeks as she tries to entice some longs standing to accept paper instead of metal."

Sat, 02/02/2013 - 15:00 | Link to Comment Muppet Pimp
Muppet Pimp's picture

Who was it that reccomended repatriation of the University of Texas gold a year or two back.....hmmmmm....Kyle Bass was the one who made that reccomendation if memory serves me right.  Texas people are an awfully loyal bunch, and something tells me ol' Kyle may become something of a folk hero down there in due time.  Seems like a certain central banker down there in the Lone Star state has a pretty impressive holding of gold in his own portfolio for one reason or another.  Ahhh, tradition.  Indeed Mr. Bernanke, tradition indeed.

Anybody remember this?

http://www.bloomberg.com/news/2011-04-15/texas-university-endowment-hold...

Seeing the Bernanke bent over the table getting the high hard one is going to be a hoot.

On a side note, didn't Gordon Brown sell all the UK's gold (at 250 oz no less) to protect the bullion banks the last time a run occurred?  History will reflect poorly on Gordon I suspect.  Sold out his people for the pigmen.  Such a shame.

 

 

Sat, 02/02/2013 - 15:04 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Brown's Bottom.......has it's own Wiki link.

http://en.wikipedia.org/wiki/Brown_Bottom

Sat, 02/02/2013 - 15:09 | Link to Comment kaiserhoff
kaiserhoff's picture

Great article.

Great reason to read ZH.

Sat, 02/02/2013 - 15:29 | Link to Comment BaBaBouy
BaBaBouy's picture

Like Sending Your Chickens For Safekeeping, To The Foxes' Den.

Hahaha, Fecking Joke.

 

But the FED's do know exacly what they are doing.

So Who has the actual GOLD right now?

Who Has de ACTUAL GOLD ???

One Thing Is For Sure, Those Who Know Will NOT TELL.

 

Headed For $50K, My Little Piggies...

Sat, 02/02/2013 - 15:35 | Link to Comment Kitler
Kitler's picture

The Golden Rule:

"He who holds the gold makes the rules."  (As opposed to > He who has the paper makes the rules)

Here's another one:

"He who panics first panics best."

Let's find out what gold is really worth. Repatriate into physical possession today.

Sat, 02/02/2013 - 17:13 | Link to Comment trav777
trav777's picture

let's calm everyone down here.

The Fed held the gold.  The Fed leased the gold to Bullion Bank.  Bullion bank sold the gold to someone else and bought USTs. 

The reality is that the gold most likely NEVER MOVED AN INCH.  It's still at the Fed, albeit with a cloudier claim chain atop it.  And the chain of title has a *cash settled provision at every turn.

If the Fed actually forklifted that gold out and it moved, then it's in someone else's warehouse.  There may be multiple claimants to beneficial ownership of the stuff but only one entity holds it.  And if you're a claimant, GFL getting the actual stuff out of there.

The Bullion banks will merely BORROW money from the Fed at 0% to pay the Fed for the gold that they sold and now must buy back but which never actually moved.  In fact, paper gold permits them to buy gold that might never actually ever be mined.  It's just record ownership.  Until/unless actual claimaints stand for delivery and TAKE delivery of physical metal, it's all just a set of promises settleable by cash.

A bunch of stackers won't force this; only sovereigns trying to bust the USD system could. Trying to use this to trade against other physical stuff as Iran and Turkey have been doing.

Is this a price suppression?  Who knows?   Until people actually want to PONY UP the money to see if there is physical supply to move at a particular price, there's no point in arguing it.  This isn't the oil market where you need real barrels to burn.  Gold and cash are, at present, interchangeable as assets.  The eventual "owner" of this gold which is still parked in the Fed's vault, has a claim against the bullion bank which is a lessee of the Fed.  If you were a size buyer like the bullion banks would be moving against, you would NOT want the hassle of trying to find a vault to store this stuff in.  The Fed's vault is arguably the most secure on the planet.  To the extent that you can continue to write checks against what's there and people accept those (FRNs), the system is sound.

Sat, 02/02/2013 - 17:34 | Link to Comment kaiserhoff
kaiserhoff's picture

Remember La France, circa 1971?

There's always a turd in the punch bowl;)

Sat, 02/02/2013 - 20:31 | Link to Comment Muppet Pimp
Muppet Pimp's picture

Couple things.  One, regarding Gordon Brown, I should have prefaced that statement with an If (hmmm...). 

Second, with regard to Trav's statement, it certainly seems to ring true, as Germany has found out.  It appears buying the gold on the open market is going to take 7 years to get them what they are owed. 

But,

With a crazed leftist in the whitehouse arming wal mart greeter snitches with assualt weapons, and seeing as there have been six flags over Texas thus far, it is not so far fetched to see how if O continues pushing and running roughshod over the constitution as he has a habit of doing, well, they have what it takes to secede whether DC likes it or not (hence O's insistence on banning assault weapons).  Assault weapons are the type needed to defend territory against tyrannical dictators, aka BO's.  Texas at present has sufficient gold and sufficient talent to start their own credible central bank, enough good ol boys and transplants with a common vision of freedom and liberty, and lots of territory to mass defenses.  Something tells me, the neighbors to the south would gladly join an effort to prevent tyranny.  Mexicans constitute a big portion of the population in Texas and are well accepted in that society.  They are proud Tejano's and harder workers than you have ever come across.  So basically, yeah, if Obama pushes his luck he is about to find out what Texans are made of.  Will it become 7 flags over Texas is the question and Obama holds the answer.  Exciting times.

We are at the point where DC is getting close to a situation where half of the free world and half of the US see them as nothing more than bullies with guns.  Expect massive amounts of 'free shit' to be given out ad nauseum to keep what allies O has loyal.  We might see things like O giving fighter jets to tryannical muslim brotherhood guys for instance.  Good thing our military is pretty far right on the spectrum and doesn't support O's policies.

 

Sat, 02/02/2013 - 22:20 | Link to Comment Blano
Blano's picture

I'm one of those transplants and proud of it.  I came here understanding that the US has already become a 3rd world craphole and hoping that Texans might someday say enough is enough.  Still, I'm shocked at how far things have deteriorated the last several years.

Sun, 02/03/2013 - 00:21 | Link to Comment strannick
strannick's picture

GLD and SLV have JPM and HSBC as their custodians, whose latest manifestations of black corruption include interest rate rigging and laundering drug money. Ridiculously, these supposedly allocated ETFs can be shorted, and their shares can be used to satisfy COMEX contracts if you can believe it. Central Bank gold leasing/rehypothecation/stealing is old news. GLD and SLV are where the real paper to gold alchemy is now. The battle of Helm's Deep is overthe battle for Middle Earth is about to begin

In happier gold news, longtime anti-gold pundit John Nadler, -widely quoted in every banal article on gold for the past 5 years and chronically wrong price predictor on the down low side- finally got fired.

Sun, 02/03/2013 - 00:16 | Link to Comment jeff montanye
jeff montanye's picture

quote i liked from the bloomberg article cited above:

“The call to take delivery is more of a challenge to the system and it borders on the anarchistic,” said Ralph Preston, a principal at Heritage West Financial Inc., a San Diego company that specializes in futures trading. “It’s like the Republicans trying to overturn President Obama over the birth certificate issue. It’s poor sportsmanship.”

apparently assassination of citizens and imprisonment without trial (yes i'm talking about you bradley manning, american hero), not to mention ex post facto laws (telecoms illegal wiretapping, banks mers fraud, mek terror group, etc.) are considered cricket though.

Sun, 02/03/2013 - 05:31 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

"Remember La France, circa 1971?

 

There's always a turd in the punch bowl;)"

 

 

It was 1965 but you're right!

 

Who'll be the 21th century turd? Chavez & Merkel... for a start!!!

Sat, 02/02/2013 - 18:27 | Link to Comment lewy14
lewy14's picture

So, no, stackers can't force the issue.

A massive popular movement in Europe might.

Specifically, if "show be the gold NOW" becomes a demonstrated path to elective power in Europe, then the cascade will run.

Therefore revolutionaries might consider funding campaigns and candidates and parties in Europe.

Even a credible threat that O(thousands) of tons of metal will be demanded prompt - that will set things off.

Sun, 02/03/2013 - 10:08 | Link to Comment Badabing
Badabing's picture

320,000,000 people in the us alone. if each person held 1/2 oz of gold thats $24,000,000,000 thats like 5406 tonn's,

 thats just the U.S.. Now lets consider the world.

 

"So, no, stackers can't force the issue."

 This statement is the biggest piece of propaganda shit in the article!

Sun, 02/03/2013 - 12:08 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

That wasn't from the article, that was Trav punching above his weight class again. He apparently had another petit mal and didn't read the Harvey Organ quote above. Stackers can't force the issue? Sure they can - when the stack is on a pallet, and the stacker is a sovereign (which he admits). "The issue" is being subtly forced every day right before your eyes. LBMA under pressure to deliver? Put the screws to the CRIMEX. There is not a mandatory out for paper pushers there. Again, failure to deliver is a queston of time. How much time do they get? Force majeure, anyone?

Sun, 02/03/2013 - 13:49 | Link to Comment trav777
trav777's picture

shut the fuck up; sovereigns are not stackers and I SPECIFICALLY said sovereigns could force the issue, you fuckin jackass.

Sat, 02/02/2013 - 21:37 | Link to Comment dirtbagger
dirtbagger's picture

Now that we all know how the banks operate with derivatives, don't be suprised if each ounce is leverage out 30 to 1

Sun, 02/03/2013 - 11:23 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Jeff Christian from the CME is on the record saying 100-1 was possible, and he is on their side...

Sat, 02/02/2013 - 21:47 | Link to Comment Eally Ucked
Eally Ucked's picture

That's interesting point of view maybe right. To me if somebody wants to play price of gold paper is much more convinient instrument, faster and more efficient. In case of bullion banks selling physical leased from Fed is a different story - somebody wants physical gold (not paper) and for sure would not leave it in care of anybody. So I asume that all that leased gold is gone somewhere, of course they're still buying some new production so probably they are not zero in their vaults.

Sun, 02/03/2013 - 05:13 | Link to Comment e_goldstein
e_goldstein's picture

At least 10x paper claims on the phyz. 

Don't want to be anywhere near that melee when the lights come on and we all see Warren swimming naked.

 

Sun, 02/03/2013 - 10:12 | Link to Comment mrgneiss
mrgneiss's picture

Ya, the bullion banks sold the gold to jeweller's/Indians/Chinese and it didn't move an inch.  Brilliant analysis.

Sun, 02/03/2013 - 13:56 | Link to Comment trav777
trav777's picture

JFC, why are you idiots so dense?

Gold consumers who want real gold buy the stuff from ACTUAL PRODUCERS, not fucking banks.

Sat, 02/02/2013 - 15:37 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

I'll gladly sell them one ounce in exchange for clear title to my house.

Sat, 02/02/2013 - 15:41 | Link to Comment Kitler
Kitler's picture

In Detroit you would get substantial change back from that transaction.

http://www.businessinsider.com/cheap-detroit-homes-2011-6?op=1

Coming to America soon...

DETROIT!

Sat, 02/02/2013 - 17:16 | Link to Comment trav777
trav777's picture

so there's no worth in property in a 90% black jurisdiction?

I thought diversity was good?

Detroit was, no more than 60 years ago, called the Paris of the West and the Arsenal of Democracy.  It was one of the world's great cities.

Now, look at it. 

Sat, 02/02/2013 - 18:02 | Link to Comment Kitler
Kitler's picture

Arsehole of Democracy?

Sun, 02/03/2013 - 08:40 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Detroit heralds the world's future....because it's the same people running it.

Sun, 02/03/2013 - 12:14 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Better analogy? Sarajevo hosted the Winter Olympics, and the medals stand was later used for executions. Civil war, bitches.

Sun, 02/03/2013 - 13:57 | Link to Comment trav777
trav777's picture

nah; black power is dependent upon belly crawling idiot white enablers.

Also, their reproductive rate is dependent upon others feeding their children

Sat, 02/02/2013 - 19:50 | Link to Comment Tango in the Blight
Tango in the Blight's picture

If you go black you won't come back.

Sat, 02/02/2013 - 15:46 | Link to Comment OutLookingIn
OutLookingIn's picture

I wonder how much?

To sweeten the pie.

That the NY Fed offered

the Germans to postpone

thier gold request for 7 years?

Sat, 02/02/2013 - 16:30 | Link to Comment Urban Roman
Urban Roman's picture

Only if it is an alloidal title

Sat, 02/02/2013 - 16:08 | Link to Comment Room 101
Room 101's picture

While I like Kyle Bass a lot, keep in mind that he is a contrarian, not an advocate for systemic destruction. And he is well aware that he has a following.  He isn't going to scream "RUN FOR YOUR LIIIIIIVES!!" Nor is Bill Gross for that matter. 

Like all of them, watch what they do, not what they say. 

Sat, 02/02/2013 - 19:54 | Link to Comment Daily Bail
Daily Bail's picture

This is a great clip from Bob Rice at Tangent Capital Partners.

'How Central Banks Lease Their Gold'
Sun, 02/03/2013 - 09:28 | Link to Comment matrix2012
matrix2012's picture

 

I luv the tagline of The Daily Bail "We watch CNBC so you don't have to..."

 

thanks for the great consideration, thanks for saving us from being the Les Misérables

 

Sat, 02/02/2013 - 21:28 | Link to Comment EscapingProgress
EscapingProgress's picture


"There’s class warfare all right, but it’s my class, the rich class, that’s making war, and we’re winning." - Warren Buffet

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." - Lord Acton

Sun, 02/03/2013 - 03:04 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

"Best defense is good offense" - Al, Cook on Alice

Sat, 02/02/2013 - 14:53 | Link to Comment Victor The Cleaner
Victor The Cleaner's picture

Surprised?

I am not. One morning a bit more than a week ago, the future was in backwardation. This offers the obvious arbitrage opportunity to anyone who can trade both at the COMEX and OTC spot loco NY, namely to sell spot and buy the future. So it is no surprise if the arb is now taking delivery in order to close the trade.

Victor

 

Sat, 02/02/2013 - 15:09 | Link to Comment francis_sawyer
francis_sawyer's picture

Same hands on BOTH sides of the trade...

~~~

This isn't a matter of 'Trader A' vs. 'Trader B'... It's the same goddamned entity [using paper markets to manipulate a favorable acquisition of PHYZZ ~ & hell, if it happens to BLOW UP, granny & her catfood get handed the bill]... All courtesy of Ben Shalom Bernanke...

Sat, 02/02/2013 - 15:15 | Link to Comment kliguy38
kliguy38's picture

The only surprise will be when they pull the trap door. Right now its a balancing act for them and the "other" accumulators of physical...let's call it an "uneasy tango" with an Eastern twist. Bullion will remain the real game in the dark pool as the "Paper Game" gets the headlines....gl

Sat, 02/02/2013 - 15:43 | Link to Comment Bay of Pigs
Bay of Pigs's picture

In other news, Jon Nadler finally got canned at Kitco. Nice to see that smug little prick go...

http://www.kitco.com/reports/KitcoNews20130201.html

Sat, 02/02/2013 - 16:00 | Link to Comment Bastiat
Bastiat's picture

Awesome.  A friend who works for a Canadian miner recently told Kitner his company would never do business with Kitco as long as Nadler worked there.  Seems some miners object to having their product bashed.

Sat, 02/02/2013 - 16:26 | Link to Comment francis_sawyer
francis_sawyer's picture

kewl ~ nice add!

Sat, 02/02/2013 - 16:12 | Link to Comment Room 101
Room 101's picture

I guess biting the hand that feeds isn't such a good strategy afterall.

Sat, 02/02/2013 - 16:36 | Link to Comment Jam Akin
Jam Akin's picture

That is great news.  He was right exactly once a month (around options last trade date) for years.  Surprised he lasted as long as he did.

Sun, 02/03/2013 - 11:28 | Link to Comment vamoose1
vamoose1's picture

   agree on  nadless  bop      we  got  another    bought cftc   commissioner   last  week  too   sommers  i think   so   do  they   sense  a  sea  change.....  now  if  we  can  get   ferret  faced   christian    pls   jesus    and  the  charming   honest  faced  gensler .....

Sat, 02/02/2013 - 16:24 | Link to Comment Al Huxley
Al Huxley's picture

Good arbitrage trade, as long as the 'take delivery' part works out as expected.  We'll see - or maybe your trader will get a chance to go double-or-nothing if they roll forward.

Sat, 02/02/2013 - 15:10 | Link to Comment your neighbor
your neighbor's picture

Ray Lewis screams out "They are gonna run the "MF Global play again" then proceeds to cry and mutters "God is good"

Sat, 02/02/2013 - 16:41 | Link to Comment francis_sawyer
francis_sawyer's picture

I'm a RAVENS fan... & I admire Ray Lewis... But I wish he'd leave GOD out of it... I can't find the clip, but there was this great scene in 'FOR LOVE OF THE GAME', where Billy Chapel [Kevin Costner] is standing on the mound, in the last inning, of a perfect game that he's throwing, and says:

"Lord ~ I know I promised to never involve you in a baseball game... always seemed silly... you got better things to do... But if I could ask, just this one time, for a favor... Could PLEASE make this pain in my shoulder go away for about 10 minutes"

~~~

All I could find was a partial clip to that scene...

http://www.youtube.com/watch?v=bILiFgWHH78

Sat, 02/02/2013 - 17:07 | Link to Comment DosZap
DosZap's picture

sir francis,

Why?

But I wish he'd leave GOD out of it...

The man is a believer in God,please give him the same rights as yourself if you are not a believer,on not to believe.

Sat, 02/02/2013 - 18:38 | Link to Comment francis_sawyer
francis_sawyer's picture

I don't mind if Ray Lewis... HIMSELF... believes in GOD... "deer antler spray"... or tarot cards...

~~~

Metaphorically speaking... I do worry about the 'cultists' that follow Jim Jones to Guyana... [Though I suppose I 'shouldn't']... FUCK 'em, I guess... They're no different from:

- Bernanke

- Greenspan

- Blankfein

- Dimon

- Adelson

- Bloomberg

- Feinstein

- Schumer

- Paulson

- Geithner

- Emmanuel

- Netanyahu

- Summers

- Krugman

- Rubin

- Kissinger

- Wolfowitz

- etc. followers

I guess they deserve a FULL ULTIMATE SHOWERING of benefits from the entity of their worship ~ THE MONEY GOD... 

~~~

For the record ~ I DO BELIEVE IN GOD... My problem is with RELIGIONS... I'll give Ray the benefit of the doubt because he doesn't come out as REPRESENTING a particular religion... But people are pretty stupid [& are therefore likely to 'fold in' his GODSPEAK into their creed of choice]...

Sat, 02/02/2013 - 14:46 | Link to Comment battle axe
battle axe's picture

Fort Knox? Is the gold really there or?

Sun, 02/03/2013 - 05:16 | Link to Comment e_goldstein
e_goldstein's picture

How much tungsten does it take to build x amount of monofiliment light bulbs?

 

Sat, 02/02/2013 - 14:52 | Link to Comment cardis
cardis's picture

Page NF.

Sat, 02/02/2013 - 18:29 | Link to Comment bobthehorse
bobthehorse's picture

I don't understand the concept of leasing gold.

It baffles my mind.

I just don't get it.

http://www.angrysinner.blogspot.kr/2013/02/yesterday-morning-i-had-hankering-for.html

Sun, 02/03/2013 - 15:10 | Link to Comment orez65
orez65's picture

It's simply FRAUD.

You loan what you don't own.

It's a crime that has been legalized for banks by the Government.

Sat, 02/02/2013 - 14:02 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

All gone!

Sat, 02/02/2013 - 14:27 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Not mine!

Sat, 02/02/2013 - 14:40 | Link to Comment mr_T
mr_T's picture

You forgot to mention Mexico's gold.. This will be the 2nd time they get jacked for their gold by Europa. Pinche wheys.....

Sat, 02/02/2013 - 14:05 | Link to Comment Handful of Dust
Handful of Dust's picture

My money is safely invested in FB, GRPN and MFGlobal.

Sat, 02/02/2013 - 15:00 | Link to Comment kill switch
kill switch's picture

Corzine,, I've been looking for you, cough it up..

Sat, 02/02/2013 - 14:09 | Link to Comment glenlloyd
glenlloyd's picture

Being first at the door has, in this case, a huge benefit....

Sat, 02/02/2013 - 15:00 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I wonder if that is so. For some strange reason I think a different outcome may present.

Remember Bernie Madoff? And remember all those poor investors who were left out in the cold when the withdrawal window closed? How is that being resolved? Anyone remember?

Simple! Those who were first out the door received an unwelcome letter in the mail stating that since they 'benefited" from a Ponzi scheme, regardless of if it was unwittingly, they must now cough up a large percentage of what they withdrew over the years (or just recently) which is then put back into the 'collective' pot and 'equitably' redistributed to the less fortunate who never made it out of the burning building alive and with their money.

I suspect this might also be what happens when various vaults, private or public, are found empty of their 'stored' Gold.

Sat, 02/02/2013 - 15:12 | Link to Comment Raymond Reason
Raymond Reason's picture

Wow.  That is total perversion of bankruptcy law.  Preferred payments in bankruptcy are not allowed, but anyone who received payments in a normal agreed upon manner keep them, or that's the way it used to be.

Everything is getting hazy, flaky.  I noticed that many banks will not cash cashier's checks immediately now, but need to sit on them for several days. 

Sat, 02/02/2013 - 15:23 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Wow. That is total perversion of bankruptcy law." 

Yes. My condolences to the GM bondholders as well for the corn holing they took during that bankruptcy.

Sat, 02/02/2013 - 23:58 | Link to Comment Karlus
Karlus's picture

Which is exactly why I will never buy another GM product again. Its a shame I will send my money to the Germans or Japanese, but the idea of giving a company half owned by UAW and screwed bondholders is simple theft.

Too bad too, because i buy high end cars and they coulda snagged me for that cadillac w the big engine or the new vette. Not now

Sat, 02/02/2013 - 15:32 | Link to Comment wee-weed up
wee-weed up's picture

Yep... For total perversion of bankruptcy laws, one need look no further than our illustrious Dear Leader and how he handled the auto industry bailouts/takeover. Laws are for thee - not for me!

Sat, 02/02/2013 - 15:15 | Link to Comment kaiserhoff
kaiserhoff's picture

 

Let's Get Physical, Physical....

Sat, 02/02/2013 - 20:02 | Link to Comment Tango in the Blight
Tango in the Blight's picture

Watch me getting physical...

http://www.youtube.com/watch?v=A68j28KQaik

Blondes love physical.

And diamonds are their best friend.

And yet they're the ones who are being called dumb.

Sat, 02/02/2013 - 16:13 | Link to Comment Room 101
Room 101's picture

"Those who were first out the door received an unwelcome letter in the mail stating that since they 'benefited" from a Ponzi scheme, regardless of if it was unwittingly, they must now cough up a large percentage of what they withdrew..."

To which said investors would have been wise to return a letter saying, in effect: go fuck yourselves. 

Sat, 02/02/2013 - 17:55 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I suspect I didn't make myself clear above.

I was imply that if you had your Gold stored at a public or private vault and "got out early", meaning before it was discovered that the vault was essentially empty of Gold, that it is likely, though not certain, that this might be handled in the same way as they are handling the Madoff mess. But with an additional twist. It you got out early and simply "sold" your stored Gold and received a check from the vault company the dissolution might be that you would have to cough up some if not most of that cash. They can't take physical Gold you never had in your hands.

But if you took your distribution in the specie itself, meaning you received Gold in any form, then I suspect they will come after most of that Gold. It will only become clear that many of these vaults are empty when the price has already risen much higher than it is now for whatever reason, possibly because so much Gold is 'missing'. If they were to demand cash from you instead of the Gold what price do they use, the price of the Gold at the time you received it or the price of the Gold now?

The fact that the Gold price will most likely have risen will make your physical that much more valuable to whomever is sorting out this mess. Remember, if the GM mess taught us one thing it is that there are no rules. Or that the rules are whatever they say the rules are. 

Sat, 02/02/2013 - 18:57 | Link to Comment shovelhead
shovelhead's picture

I'm not a lawyer but I think there would be a real problem with trying to claw back gold in that manner.

The gold holder would have had his lawful contract fulfilled while the latecomer would have claim to a lawsuit both civil and criminal for fraud.

GM nonwithstanding, I don't see how someone who has a full legal claim could be held responsible (suffer partial loss) because at that point in time there was no criminal act. The crime of fraud only occurs when the promiser cannot deliver to the second party.

Call it the Early Bird defense.  :)

It would look different , natch, on an allocated account with a bar number, I'm sure, as the first buyer on the list could be made whole, as that was a legal title, with subsequent titles listed as being fraudulent.

My reasoning being that the buyer is purchacing a fixed asset and not a owner of a share of a liquidated business asset.

An interesting legal question for someone with tort experience to expand on.

Sun, 02/03/2013 - 11:30 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Sadly the various rules and laws are there to protect the predators from the prey. This is always the primary rule and only when the primary rule has been satisfied will the rules and laws be used to sort out 'legal' issues among the prey......just as long as this activity doesn't violate the primary rule.

A failing socioeconomic system is extremely dangerous to the predators. So they will revert back to the primary rule, which is that there are no rules when it comes to protecting the predators from the prey.

We need only carefully examine the complete lack of bankster prosecutions and other assorted skullduggery to recognize that the primary rule is being enforced. If and when the majority finally recognizes this truth, then things will begin to change.

Sat, 02/02/2013 - 18:34 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

My daddy always taught me that if you ain't first, your last....the misses really like this concept but other than that it usually works out.

Sat, 02/02/2013 - 14:14 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Gold is money. It is the money of kings and cocksuckers alike. Use it wisely my friends.

Sat, 02/02/2013 - 14:15 | Link to Comment Rusty Shorts
Rusty Shorts's picture

pffft, Gold...backed by nothing.

Sat, 02/02/2013 - 15:03 | Link to Comment RockyRacoon
RockyRacoon's picture

It does prompt one to do a mental double-take about "full faith and credit", no?

Gold bugs, to non-gold-bugs, seem to be fully in control of one of the various lunatic fringes.

Too bad they're wrong!   Bwuahahahaha (he cackled madly...)

Sat, 02/02/2013 - 15:44 | Link to Comment AE911Truth
AE911Truth's picture

The phrase "Full Faith and Credit" is a Barbarous Relic.

Sat, 02/02/2013 - 19:00 | Link to Comment FeralSerf
FeralSerf's picture

One needs the Gift of Faith to be completely comfortable with that concept.  Most Americans still have it apparently.

Sat, 02/02/2013 - 23:52 | Link to Comment Titan Uranus
Titan Uranus's picture

Is "Full Faith and Credit" about the same thng as "Hope and Change"?

Sun, 02/03/2013 - 15:17 | Link to Comment orez65
orez65's picture

The US financial system and Federal Government are a total and absolute FRAUD.

We need to go back to basics: 1. Thou shall not steal, 2. Thous shall not kill ...

Follow the US Constitution, stop violating it.

The present situation is so damn depressing, a fucking illusion of wealth.

Fuck it all!

Sat, 02/02/2013 - 14:17 | Link to Comment Poor Grogman
Poor Grogman's picture

It's an odd feeling to realize you might have purchased gold that some nation thinks they still own?

Exiting the ponzi early is the only answer...

Sat, 02/02/2013 - 14:46 | Link to Comment Gold Dog
Gold Dog's picture

Grogman,

I was just thinking the same thing! How long will it take the auditors to track the course of some of my Eagles and declare them "stolen property" that I have no right to own. WTF??!!

Dog

Sat, 02/02/2013 - 15:15 | Link to Comment A Nanny Moose
A Nanny Moose's picture

If you can't hold it, you don't own it.

Sat, 02/02/2013 - 15:34 | Link to Comment donsluck
donsluck's picture

I do hope you had the forsight to purchase with cash.

Sat, 02/02/2013 - 16:57 | Link to Comment francis_sawyer
francis_sawyer's picture

Don't be so fucking stupid... Just MELT the goddamned shit... [which is probably EXACTLY what the fucking FUCKS that are stealing the gold AS WE SPEAK are doing ~ thus leaving a 'dead end' trail in the process for when TS REALLY HITS TF]... Oh ~ but make sure you JUNK francis_sawyer for being a 'jew hater' while you contemplate your next move... It'll get you inside the velvet ropes of the politically correct "IN" crowd... You'll never be wanton for a party invitation...

PLEASE bring back the 'math question' at ZH...

Sat, 02/02/2013 - 18:06 | Link to Comment Poor Grogman
Poor Grogman's picture

My point is that the sovereign governments are allowing their so called independent central banks to fleece their own citizens in a clandestine manner in order to keep the "market" under control.

This game has almost run it's course, unfortunately for the governments of the western world there will not be a rematch...

Sun, 02/03/2013 - 05:31 | Link to Comment bunnyswanson
bunnyswanson's picture

Purchasing gold with US dollar?  Could this be what China and others are doing?  Saturating the market with greenbacks at the same time as buying up the gold at a bargain price thanks to gold manipulation.

Sat, 02/02/2013 - 14:47 | Link to Comment FeralSerf
FeralSerf's picture

Perhaps the PTB will say that the gold you "purchased" was not really owned by the one that sold it to you and therefor you do not have legal title to it so they must therefor confiscate it from you.  You will, of course, be told that you can get reimbursed for your loss by the ones that sold the gold to you.

Livestock aren't supposed to own gold anyway.  Gold is the money of Kings.

Sat, 02/02/2013 - 17:23 | Link to Comment Acidtest Dummy
Acidtest Dummy's picture

The leafs belong to the trees and the souls are the property of the state.

Sat, 02/02/2013 - 18:11 | Link to Comment Poor Grogman
Poor Grogman's picture

Gold is the money of kings.

Are you referring to Mervyn?

Sat, 02/02/2013 - 19:10 | Link to Comment shovelhead
shovelhead's picture

No. Gordo saw to that.

Archduke of Ponzi might be closer to the truth.

Sat, 02/02/2013 - 15:45 | Link to Comment AE911Truth
AE911Truth's picture

When it comes to the Fiat Ponzi currency, the only winning move is not to play.

Sat, 02/02/2013 - 17:16 | Link to Comment hmmmstrange
hmmmstrange's picture

Honey, I need to return your engagement ring. Apparently it belongs to Germany.

Sat, 02/02/2013 - 17:43 | Link to Comment misnomer
misnomer's picture

I came upon this article on a report of Wartime Gold Transactions while researching on the Bank of Canada website...

"On 11 July 1997, the Bank of Canada launched a search of its wartime gold records. This search was a direct response to reports in a recently declassified U.S. government document that a 1942 transfer of ownership of gold held for safekeeping in its vaults in Canada may have facilitated a separate, parallel transfer in Switzerland of looted Nazi gold between the central banks of Switzerland and Portugal.

 

http://www.bankofcanada.ca/1997/11/press-releases/final-report-wartime-g...

Just thought it was interesting...

Sun, 02/03/2013 - 02:08 | Link to Comment jonjon831983
jonjon831983's picture

hm interesting

Sun, 02/03/2013 - 05:19 | Link to Comment e_goldstein
e_goldstein's picture

Not much beats an acetylene torch, borax and a crucible.

Best of luck anyone can make a legal claim to a molten puddle of metal.

 

Sat, 02/02/2013 - 14:22 | Link to Comment Hulk
Hulk's picture

The coming short squeeze in Gold and Silver is going to be one for the record books...

Got Gold ??? Got Silver ??? Got any rags, any bones, any bottles today ???

Sat, 02/02/2013 - 17:29 | Link to Comment Victor The Cleaner
Victor The Cleaner's picture

The cool point that's gonna surprise all the gold bugs is that there will be no short squeeze.

The paper gold price (i.e. the "official" London price) will simply continue to drop. Then, at some point, the market will run out of (physical) reserves. Trading will stop. Cash settlement. At this point, the dollar will go down the drain, and nobody will get any milligramme for their dollars any longer. Capital controls. The U.S. government will block most if not all FOREX transactions. And they will sell some of their official gold to select counterparties in order to secure vital imports (this slimey smelly black stuff that comes from the Arabian desert).

Some time later, there will be a new liquid market for gold, but physical only. It will be in Euros. But you guys in the U.S. won't have acces because you cannot get any Euros due to the capital controls. Only once the dollar is down the drain and either there is some arrangement with the foreign creditors of the U.S. or there is an official new curreny, only then will you be able to buy Euros or even gold directly. Then (and only then) your government will encourage trading gold (physical that is).

Victor

 

Sat, 02/02/2013 - 18:47 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ $55,000

And THAT is the single best reason to own gold.

Sat, 02/02/2013 - 18:51 | Link to Comment DaveA
DaveA's picture

That's exactly what happened after the French Revolution. Problem is, if politicians make dollars worthless and gold illegal, with what will they pay police and soldiers to protect their sorry asses? All it takes is a young corporal from Corsica to say, "put me in charge and you'll be paid in gold".

Sat, 02/02/2013 - 19:22 | Link to Comment Victor The Cleaner
Victor The Cleaner's picture

It can be done. You just pay your police with printed money. Easy because you are a currency issuer and the Fed is subordinate to the Treasury Department in exchange rate and reserve issues. Sure, you need to keep increasing the public sector salaries quite rapidly in order to preserve their purchasing power.

No, nobody from Corsica needed. Think about Zimbabwe. Who is still the president/dictator? Right. He wasn't replaced. Who still heads their central bank? Right. It's still Gideon Gono. He is also still in office.

Hyporinflation is quite ruling class friendly, it seems.

Victor

 

Sun, 02/03/2013 - 11:37 | Link to Comment vamoose1
vamoose1's picture

  prefer  gideon  gonzo myself   sidesplitting  cat

Sat, 02/02/2013 - 23:59 | Link to Comment Titan Uranus
Titan Uranus's picture

I'm not taking financial advice from someone who can't spell 'access'.

Actually, when the dollar tanks there will be lots of "money" out there, whether in the form of gold bars, silver coins, toilet paper, or .22 long rifle rounds.  I wonder which will be easiest to carry...

Sat, 02/02/2013 - 14:21 | Link to Comment Banksters
Banksters's picture

It is like AIG selling insurance on derivatives and having NO WAY OF PAYING OUT the claims when the policies go bad.- it wasn't in their business model...  In other words the vast majority of finance is built on FRAUD.   When the fucker blows up, no only do they get their bonuses but immunity from prosecution and a tax payer bailout- all in the name of stablizing the 'system'.   With that said, I'm sure that Fort  KNox is empty, if it weren't we would have annual audits.   

 

If Americans don't revolt soon, we'll be under overt fascist rule.    

Sat, 02/02/2013 - 14:24 | Link to Comment Raymond Reason
Raymond Reason's picture

Fort Knox and New York Fed may be empty, but you can bet your last dollar, there is gold in Rothschild's basement. 

Sat, 02/02/2013 - 15:40 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

I bet Soros has a big vault full in his basement too.

Sun, 02/03/2013 - 00:04 | Link to Comment Karlus
Karlus's picture

If gold really was the issue, why keep selling eagles? Giving gold to the ppl seems counterproductive

Sat, 02/02/2013 - 16:37 | Link to Comment DosZap
DosZap's picture

Fort Knox and New York Fed may be empty, but you can bet your last dollar, there is gold in Rothschild's basement.

 

U forgot West Point.

Sat, 02/02/2013 - 16:38 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Isn't that somewhere near the capstone?

Sat, 02/02/2013 - 15:06 | Link to Comment RockyRacoon
RockyRacoon's picture

Revolt?  I have second thoughts about that happening any time soon:

"An unconscious people, an indoctrinated people, a people fed only partisan information and opinion that confirm their own bias, a people made morbidly obese in mind and spirit by the junk food of propaganda, is less inclined to put up a fight, ask questions and be skeptical."  --Bill Moyers

Sat, 02/02/2013 - 15:25 | Link to Comment Banksters
Banksters's picture


Edward Bernays - "The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society.

 

 

However, it doesn't take the masses, it takes a minority who ultimately awaken them.  Call it setting a brush fire in the well regulated group mind!  People know things are fucked up, and I believe that the govt and propaganda outlets are losing control.   Regardless, the ponzi is blowing up in real time- I highly doubt people are hedging the cost to fill up their gas tanks with the S& P 500.   Even if they did, the market would collapse when they cashed out for retirement.   

 

Sat, 02/02/2013 - 15:46 | Link to Comment FeralSerf
FeralSerf's picture

Removal of gold as a possible currency is necessary to prevent it from becoming an alternate to the Jewish confetti/legal tender we are forced to accept.  The two cannot co-exist if the money printers are to remain in power.  The money printers have no intention of abdicating.

The paper they print is the stuff the army and the police get paid with.  The army doesn't like it when they don't get paid.

Sat, 02/02/2013 - 17:34 | Link to Comment Acidtest Dummy
Acidtest Dummy's picture

The police can pay themselves, it is their privilege for obeying the elites. The army is first in line to get paid, but they are not allowed to take their weapons with them when they go to the bank to cash their paychecks.

Sun, 02/03/2013 - 05:21 | Link to Comment e_goldstein
e_goldstein's picture

"If Americans don't revolt soon, we'll be under overt fascist rule."

Um, kinda have already been there for about 100 years now.


Sat, 02/02/2013 - 14:22 | Link to Comment Joebloinvestor
Joebloinvestor's picture

If I was Germany, as soon as the US said it would take seven years I would have:

1. Told the US that 20% just increased to 50%

2. Told the US an auditor was on a plane the next day to audit EVERYTHING.

Sat, 02/02/2013 - 15:27 | Link to Comment fonzannoon
fonzannoon's picture

Germany asking for 20% is an assumption. I assume they asked for all of it. 20% over 7 years was the answer, followed by "if u are lucky". Followed by "WTF are you gonna do about it anyway"? 

Sat, 02/02/2013 - 15:35 | Link to Comment donsluck
donsluck's picture

Exactly. Bush declared we are not subject to the International Court. Shooting from the hip, I doubt Obummer retracted that stance.

Sat, 02/02/2013 - 17:40 | Link to Comment Acidtest Dummy
Acidtest Dummy's picture

There is no statute of limitations for crimes against humanity. Only that they must be held to account before they die of old age.

Sat, 02/02/2013 - 15:43 | Link to Comment wee-weed up
wee-weed up's picture

Sad that The Fed can tell Germany to fuck off... but the tentacles of globalization penetrate everywhere!

Sun, 02/03/2013 - 00:06 | Link to Comment Titan Uranus
Titan Uranus's picture

'Followed by "WTF are you gonna do about it anyway"?'

Is that like when you owe me 10 bucks you have a problem, but when you owe me a million bucks I'm screwed?

Sat, 02/02/2013 - 15:57 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

You and what army, what army Joe? Isn't that what it ultimately comes Dow to every single time? Brute force

Sat, 02/02/2013 - 17:44 | Link to Comment Acidtest Dummy
Acidtest Dummy's picture

"We search these documents in vain for one that survives its usefullness to the stronger party." -Haile Sallasie, to the League of Nations (protesting Italy's aggression in Ethiopia.)

Sat, 02/02/2013 - 16:20 | Link to Comment Room 101
Room 101's picture

That's the point, though.  The German bankers have no more interest than ending the ponzi than the American ones do.  The German repatriation....when the Fed gets around to it....is just a ruse to try to quiet the sheeple on their domestic political front. 

Sat, 02/02/2013 - 14:25 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

I do not understand how something leased can become an asset. 

So, if I lease a House I can consider the value of the house on my balance sheet?  Same with a car.  If I lease a Car I can claim the value of that Car on my balance sheet?

Sat, 02/02/2013 - 14:53 | Link to Comment FeralSerf
FeralSerf's picture

If you're the lessor, of course it's still your asset.  When you rent your house or car to someone else, that person doesn't become the owner of the asset.  They only have the use of the asset for the agreed upon time.  And if that asset didn't really belong to you when you (sub)leased it, use of it can also legally be taken away from your lessee.

Sat, 02/02/2013 - 15:18 | Link to Comment A Nanny Moose
A Nanny Moose's picture

even the "owner" of the house/car, are just renting it from the gubmint.

Sat, 02/02/2013 - 14:59 | Link to Comment Raymond Reason
Raymond Reason's picture

Same as renting out a home, it is your asset.  The difference is that your lessee cannot then sell your home, or use it as collateral to purchase bonds.  Special rules for the bullion banks. 

Sat, 02/02/2013 - 15:07 | Link to Comment RockyRacoon
RockyRacoon's picture

The lessor, especially of a commercial property, can claim his lease as an asset, for the term of the lease.  It is a business asset since it is part of the actual business itself.  It's a sort of rehypothecation. 

Sat, 02/02/2013 - 15:20 | Link to Comment Raymond Reason
Raymond Reason's picture

But are the bullion banks not considered lessees (is that a word)?   I see what you are saying though.  But i was a lessee of a commercial property, and the only thing i was allowed to claim as an asset was " tenant improvements" . 

Sat, 02/02/2013 - 17:21 | Link to Comment RockyRacoon
RockyRacoon's picture

There are at least a dozen types of commercial leases, each with its own lessee rights to "ownership" of the property.

Sat, 02/02/2013 - 20:48 | Link to Comment Raymond Reason
Raymond Reason's picture

No doubt you are correct, as we can see with bullion banks.   

Sat, 02/02/2013 - 17:41 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Waterfallsparkles

The answer to your question is "yes"

If you are a central Banker.

Sat, 02/02/2013 - 14:24 | Link to Comment hallywood
hallywood's picture

Claim checks for the LBMA, CME and other 100:1 fractional reserve gold platforms that allow investors to participate in price movements will be cash settled when the price inevitably goes parabolic. If you don't own physical gold you can touch, you don't own REAL gold, which for 6000 years has been a store of value at whatever price it is traded. If you understand this premise, you may be able to participate in the greatest trasnfer of wealth in the last 100 years. It's coming........

Sat, 02/02/2013 - 14:26 | Link to Comment PLira
PLira's picture

This piece was emailed on 1/28. Funny it took so long to make ZH.

I find it pretty good but then, what do I know. I also like that they don't shill their site at the end of the article like so many others. Of Course, they do fish for takers in their emails on occasion.

Here is yesterdays piece:

http://www.internationalman.com/global-perspectives/two-chess-moves-away...

 

I have no affiliation with IM but I do enjoy these articles to get me brain juices flowin.

Sat, 02/02/2013 - 14:28 | Link to Comment rlouis
rlouis's picture

So does that mean GS/JPM insider clients are going to re-cast numbered gold bars?

Sat, 02/02/2013 - 14:28 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

The farce is about to end... Thank you Chavez, thank you Merkel!

Sat, 02/02/2013 - 14:30 | Link to Comment BattlegroundEur...
BattlegroundEurope2011's picture

Transparency anyone?

 

Sat, 02/02/2013 - 14:37 | Link to Comment francis_sawyer
francis_sawyer's picture

 "During the Cold War, Germany moved much of its gold to New York in case the USSR invaded Germany"

~~~

Ha! Jokes on you... You were worried about the Russians when you should have been worried about the Jews... [Junk away if you think it's ABSURD to make that connection, which one could EASILY bring to the surface by a full scale audit]... As always ~ We'll NEVER KNOW [but should immediately begin junking the mere thought of such impropriety because THE GOVERNMENT & THE MEDIA NEVER TELL LIES ~ rolls eyes]...

I can tell you this much... francis_sawyer didn't steal it... [but feel free to make me out to be the BAD GUY at your pleasure]...

Sat, 02/02/2013 - 14:56 | Link to Comment FeralSerf
FeralSerf's picture

Goyim are livestock.  It says so right here in the Talmud.  Why Goyim think they own anything is a mystery.

Sat, 02/02/2013 - 15:30 | Link to Comment francis_sawyer
francis_sawyer's picture

I don't want to get into a 'religious' debate on the subject [Because it's my firm belief that RELIGIONS are just something that people use to hide behind & to create justifications for their actions]...

~~~

Instead ~ to me, it's all about ATTITUDE...

If one were to delve into the ATTITUDE behind, say, "kosher food", they'd find that it is described [by their own people], as a PATH TO HOLINESS... Now ~ having said that, it is within that same belief system [or, ATTITUDE], that "goyim", [as you describe], are NOT considered, in one way or another, subject to the same PATH TO HOLINESS system [when it comes to eating food]...

IOW ~ There is ZERO 'Path to Holiness' (one way or another), for goyim... They're absolutely negated by birth...

This makes them WORSE than livestock [because some parts, of some 'livestock', can actually be deemed kosher]... instead ~ they are PIGS...

To make it worse [& to REALLY drive home the point]... Food that could be considered 'kosher' can NO LONGER be considered kosher if it is then prepared in a pan that formerly was used to prepare a non-kosher meal...

On the same token... "non-goyim" [aka "tribesmen"], even if they fall off the wagon & don't eat kosher food, are still candidates for the PATH TO HOLINESS...

~~~

Please try to remember that this has ZERO to do with 'religion' in the mind of francis_sawyer... I just wonder what sort of mindset could even invent an attitude such as described above...

Sat, 02/02/2013 - 15:40 | Link to Comment LasVegasDave
LasVegasDave's picture

RIIIIIIIGHT.  cause this article is about kosher food

Putz!

Sat, 02/02/2013 - 16:01 | Link to Comment francis_sawyer
francis_sawyer's picture

Look dipshit... There were 5 other topics on ZH today that I dropped comments on that had ZERO mention of 'kosher food' [by metaphor] or anything even close... Here's one of them [from your good friend Terminus ~ who appears to be ok with 'superficial' comments like YOURS, instead of 'articulated' arguments]...

http://www.zerohedge.com/news/2013-02-01/chinas-broken-shock-absorber#comment-3209066

~~~

Does the ADL pay you by the hour [or by the comment ~ because you only show up on 'SPECIAL' occasions ~ are you like, 'Sheldon Adelson's pool boy or something]?... And, as always, [as stated above]...

I can tell you this much... francis_sawyer didn't steal it [reference to the GOLD, which was, in fact, the thread topic]... [but feel free to make me out to be the BAD GUY at your pleasure]...

Sat, 02/02/2013 - 16:45 | Link to Comment LasVegasDave
LasVegasDave's picture

Right, I am on the ADL and Sheldon Adelson's payrolls.

You are some fuckin clueless chump

Sat, 02/02/2013 - 17:05 | Link to Comment francis_sawyer
francis_sawyer's picture

Thanks for the confirmation...

~~~

& "ON A LONG ENOUGH TIMELINE"... We're ALL fuckin clueless chumps... [Though I'm proud to announce that I'm neither on Sheldon Adelson's payroll, nor the ADL's ~ So at least I have that going for me]...

Sat, 02/02/2013 - 16:01 | Link to Comment FeralSerf
FeralSerf's picture

Homo sapiens are tribal animals.  When there are conflicts for resources, The Tribe comes first.  And there must be a dogma to unite The Tribe.   (e.g. They hate us for our freedom.)   Why do Americans need a military that is larger than all the rest in the world's militaries combined?

“Our race is the Master Race. We are divine gods on this earth. We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best. Other races are considered as human excrement. Our destiny is to rule over the inferior races. Our worldly wise kingdom will be ruled by our leader with a rod of iron. The masses will lick our feet and serve us as our slaves.” — Israeli Prime Minister Menachem Begin (1977-1983) in a speech to the Knesset [New Statesman Magazine June 25 1982]

"Religion is regarded by the common people as true, by the wise as false, and by the rulers as useful." -Lucius Annaeus Seneca (4?BCE - 61CE)

Sat, 02/02/2013 - 16:03 | Link to Comment francis_sawyer
francis_sawyer's picture

 "Religion is regarded by the common people as true, by the wise as false, and by the rulers as useful."

~~~

I like that... That sums it up for me... I like uncomplicated things...

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