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Pakistan Enforces 30-Day Ban On Gold Imports To Stall "Steep Increase" In Smuggling To India
As we have discussed numerous times, India's ban and tariffs on gold imports (supposedly to protect their current account balance) is having numerous unintended consequences. From flights full of gold-laden passengers entering the country, to trying to roll-back centuries of tradition surrounding Indian weddings, the capital control efforts are back-firing as the smuggling epidemic spreads. The foolishness of this 'control' is also spreading as Pakistan has noticed the surge in smuggling, concerned at a steep increase in import duties on gold in a "neighboring country," and has imposed a 30-day ban on gold imports to curb the 'trade'.
- *PAKISTAN IMPOSES TEMPORARY 30-DAY BAN ON GOLD IMPORTS
(Via Bloomberg)
The ban is only to stop the smugglers...
Ban to curb smuggling without affecting legitimate demand-supply
Which of course will always wear a patch over one eye and skull and crossbones bandana to ensure officials can tell them apart from the legitimate demand-meeters...
But what is there can be exported...
Export of gold to continue without any restriction
At a nice profit to the high-premium-paying Indians.
Of course, this is not about managing the status quo or manipulating gold prices, this is about managing the FX rate (because the reason the rupee is tumbling is all about gold and nothing to do with fast money outflows thanks to the Fed)...
Impact of gold smuggling on Pakistan rupee exchange rate raised by foreign-exchange traders at recent meeting
This is not the first time they have tried such a plan...
Pakistan had imposed a ban on duty-free import of gold on July 30 for 30 days on concern rule was being misused and imported gold was being smuggled to India
So, of course, that worked so well before that they will just keep repeating the same failed plan...?
So India's efforts have led to Pakistan's controls... what next? Tell the Chinese to stop or the Blangladeshis... or Myanmar and Sri Lanka?
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BUT I NEED THAT GOLD FOR MY GRILL HOMEY!!
“Gold is my enemy. I’m always watching what it is doing.” – Paul Volcker as Fed Chairman
Oh, heavens to Mergatroid!
The Pak hefe’s want to tighten the borders for something..
What or who could possibly be driving that move?
Its for Moar freedom and to protect our way of life
Here is a fun fact.
When the Central Bank of Pakistan was established in 1948, after splitting from the Central Bank of India, the Secretary of Finance for Pakistan was a British subject named Sir Victor Turner.
After stepping down as Secretary he was named economic advisor to Thomas De La Rue and Co, Ltd., currently the world's largest commercial currency printer and papermaker, producing billions of banknotes every year.
Can You Spell "Physical GOLD Shortage" ???
The system is being prepped for a paradigm shift to take place. First, currency and price controls. Then, shipping and logistics bottlenecks. Then, outright war.
After the Olympics, things will heat up.
Efforts to ban gold "smuggling" will be almost totally unsuccessful. Efforts to ban Bitcoin "smuggling" will be totally unsuccessful.
gotta' love those fun facts :-)
thanks.
"GOLD,BITCHEZ"
(abbreviated spelling)
...and in other news, wealthy Pakis and Afghanis are smuggling record amounts og gold out to Dubai accordiong to news reports.
credible reports?
Amounts perhaps disclosed?
I wonder how the risk is there for drone-strikes...
As America's "you can not only keep your gun but you can have more" foreign policy plan continues to bear fruit.
It's for the children, because their parents obviously don't know how wonderful fiat is.
The Isoquants of Pakastani etch-a-sketch.
this one is must see
http://www.youtube.com/watch?v=C4X65TYo51U
Where do I order gold and silver fishez? I keep hearing you guys talk about them here but can't for my life find any.
India and Pakistan are practically enemies when it comes to the military, yet they can work together to restrict gold imports.
So who is the real enemy here?
See below and "lack of dollars." Plus Americans are burning corn in their fuel tanks. Ironically soda prices haven't soared.
Prepare for another gold smack down!
Hope so... got my buy orders for tomorrow morning already set in at a 2% drop.
London's open, and their daily fix was fine. Apparently, needs to be fixed...
don't they know that gold is just a barbarous relic?
they're a barbaric kind of people...
Yo Ho! A Pirate's Life for Me -
http://www.youtube.com/watch?v=hl3wxMrcUzU
Free markets must be prevented at all costs.
If there is anything hopeful in this article, it might be that imposing capital controls of any stripe may prove much harder for sovereigns to accomplish successfully than in the past.
Gold is suppressed in India under instructions from Washington. Virtually all Indian politicians are venal and easily subject to blackmail from the vast illegal NSA data collection from India (13.5 billion pieces of intelligence a month). Even the former prime minister of India, Morarji Desai was on the CIA payroll as revealed by Seymour Hersh. Desai sued for libel and lost.
India is a US fiefdom today.
Indian Call Center: "Hello, this is Peggy."
but you get 2 free ring ding!
http://www.dailymotion.com/video/x2vdl8_fonejacker-free-ring-ding_fun
You misspelled "peggy", S/B: Péhgghi
Yep,
They are of the few remaining that are still aligned with the petrodollar while many other nations are moving away from the US dollar currency reserve system. Many in Asia, Russia, the BRICs are getting out of the American fiat system.
Gold back trading note for international trade with national currencies kept local. No more world wide fiat that distorts and passes inflation to other nations. This is why we see mnay nations trying to repatriate their gold holdings while other nations are hoarding them.
Dear JustMakingitUp,
Gold was surpressed because in combination with oil, imports were slaughtering India's current account and the rupee was getting routed. The US couldn't care less how much or how little gold India imports.
As for India being a US fiefdom, see 'Devyani Khobragade'. You have no idea how little you know or foolish you look.
Get out more. There's a whole world out there whose story isn't contained on the websites of the Internet Gurus or Gold Promoters.
Namaste.
That's one of the "oddities" of a deflation. "Too much goods production at too low a cost AND price."
Pakistan is even more corrupt than India. This action is totally useless and designed to pad customs officials' pockets.
Something else is going on.
Been through that customs point often in the past.The rest of the border is very heavily militarised by both
India and Pakistan.Its hard to smuggle anything across even with bribes.
The traditional smuggling route for gold into India has been by dhow from the Gulf states inro the Mumbai surrounds.
The Jains run all the gold smuggling, and they are Mumbai based.
If you say so. It's hard to believe that long border between the 2 is impervious to smuggling. I have a good Paki friend who contends that everything is up for sale under the table. The rule of law is a very wavy line in that part of the world. Besides, this new law is aimed at stopping smuggling so obviously your theory about strict control doesn't quite make sense.
Taking statements at face value in todays world is very naive.
There are much easier ways to move large quantities of gold into India, so something doesn't ring true.
Indians don't cross caste occupations.The beggars have a caste, so do the smugglers.
The law may be tenuous, but the caste system is rigid.
"There are much easier ways to move large quantities of gold into India"
In India it's not about a few large quantities. When people work for pennies per day it's millions of tiny trickles that make up the large quantities of smuggling.
Dhows bought gold in for decades.
In large quantities, coin,scrap etc. from the souks in Dubai and Abu Dahbi.
A lot of the jewelry trade in India is in Rajahstan,Maharistra and southern India.
Just makes no sense to smuggle through Pakistan at all.
Hashish came south thru Pakistan before Uncle Scam ramped up poppy trade in Afghanistan.
Silver,silks, cloves and other things went north back over that border.
I thought Kashmir sat on both sides of the border?
Partitioned.
Nasty drive down to the plains, unless you like 100 miles of continuous hairpin bends.
Mindblowing at night, watching headlights 2000 ft above you.
Everybody should do that once.
Good stuff. I might even want to check your skippers license for the dhow. Ha! This part of the world is oddly attractive, in a swashbuckling sort of way.
As for the Himalayan drive, yes, everyone should do it once. In fact---as I'm sure you know very well---many ONLY do it once. I have a particular fondness for Manali to Keylong, then over to Leh and up to Nullu. In a Scorpian.
If they fail to prevent gold smuggling I can see a wave of speculation againt the Paki rupee coming from Wall St...
Pakistan's PM also banned himself from attending Davos this week. (due to terrorist attacks apparently)
http://www.thehindu.com/news/international/south-asia/sharif-cancels-davos-trip-after-terrorist-attacks/article5597697.ece
After the spate of terrorist attacks inside Pakistan, Prime Minister Nawaz Sharif has decided to cancel his scheduled visit to Davos, Switzerland from January 21 to 24 to attend the World Economic Forum (WEF) meeting.
A foreign office statement on Monday said Pakistan represents WEF’s second largest membership base in South Asia, with a total of four foundation members and eight global growth companies. During his visit, Mr. Sharif was scheduled to meet a number of world leaders, heads of international organizations and multinational companies. The Prime Minister’s programme also included a breakfast meeting with Pakistani businessmen, and a luncheon meeting with heads and CEOs of multinational companies, academics, representatives of NGOs and the media.
In Geneva, he was to visit the European Organization for Nuclear Research known as CERN. Pakistan has a long-standing cooperation with CERN and Mr. Sharif was to address the scientists there and witness the signing of two agreements between the Pakistan Atomic Energy Commission and CERN, the statement added.
in other news:
http://online.wsj.com/news/articles/SB10001424052702304757004579332460821261146?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304757004579332460821261146.html
ISLAMABAD, Pakistan—Pakistan is in talks with China to acquire three large nuclear power plants for some $13 billion, Pakistani officials said, in a further blow to international efforts to restrict the trade in nuclear technology.
The deal is in addition to last year's agreement to build two Chinese reactors in Pakistan's southern port of Karachi.
The agreement, if reached, would help plug the crippling gap in Pakistan's electricity supply and cement its strategic regional alliance with China, which is aimed against mutual rival India. Alarming Washington, the China-Pakistan nuclear trade bypasses international rules against nuclear exports to countries—like Pakistan—that have not signed the Non-Proliferation Treaty.
http://www.trust.org/item/20140120122320-5ykr6
ISLAMABAD (Thomson Reuters Foundation) – Amid a growing energy crisis, Pakistan is installing a 1.8 megawatt (MW) solar power plant at the Parliament House building in the capital city Islamabad.
Work on the project began in the first week of January. The initial cost - which is being funded by the Chinese government as a friendship gesture - is estimated at $60 million. The solar plant is projected to save almost $1 million each year in utility bills for the parliament complex.
Good thing no one's worrying about nuklar ter'rists or nuklar armz.
In Pakistan.
Ever.
kay, nao everywun go yell at the eye-ran!
War between China and India - is the main dream of the Fed.
They would like to assist both of them in exchange for their gold.
The initial cost - which is being funded by the Chinese government as a friendship gesture - is estimated at $60 million. The solar plant is projected to save almost $1 million each year in utility bills for the parliament complex.
Costs $60,000,000, but makes $1,000,000 a year. Gee, what an 'investment'. I'm surprised Obama didn't forward US taxpayers' money to fund such a brilliant scheme.
BTW, the yellow stuff on the shaft's rock walls is sulfur.
for those who don't know, fast forward to 01:08:32 of this clip to see a sulfur mining operation.
in any case, that whole film is worth a watch.
Please bring on another smack down!
Dr Paul Craig Roberts: Hows And Whys Of Gold Price Manipulation
The story about Gold manipulation goes viral now and Gold is at the very important breaking out point now. The markets can not be manipulated forever, particularly when physical supply is going to China these days. http://sufiy.blogspot.co.uk/2014/01/dr-paul-craig-roberts-hows-and-whys-...
Pakistani Gold just got more expensive to the Indians. It is just a way of squeezing more money from the Indian buyers. Afetr all Pakistan and India are such good buddies and friends. I am sure that the Pakistanis did this with no bad intent.
(Hmmm....We can get more Rupees out of India and increase their Capital Outflows...Hmmmm.....That will hurt their economy??? Yeah. That is the plan.)
LMAO
In related news...Drug Dealers in Mexico...
I suspect the reason they gave is false and their interests are in stopping their own imagined gold problems.
THEY HAVE LOST CONTROL....
and ya'll show know who the "they" r....
M_ _ _ Y C_ _ _ _ _ _S...........
Need one more underscore for Christmas.
Gee. Every day it seems like we see new arbitrage opportunities in the difference between paper and physical gold.
Another symptom of Au's inexorable will to clump into ever larger lumps. (If my theory is correct [that _gold itself_ has a will to glom into larger blobs] then the Chinese lump-of-gold should be attracted to the (very) massive India lump-of-gold.)* *Unless the Indian gold isn't as densely packed as its Chinese counterpart, in which case India's gold would migrate towards China. **On a long enough timeline**
blobbing up the citizenism of golding is inexorable.
There's no lost love between India and Pakistan, so it goes without saying the Pakistanis don't care about Indian economic problems, they probably thoroughly enjoy them.
This maneuver is probably ordered by the western central planners. If the Pakis like their drone attacks they can keep their drone attacks. Hey, we gotta lotta moar drones.
Darn that barbarous relic! So much trouble in our fool's paradise.
pakistan is a country rife with illegal behavior. and india has many other borders with other countries through which gold will be smuggled.
the higher the premium, the less the law matters.
the more illegal you make it, the more worried the public becomes and the more people start flocking to gold as they anticipate the illegality as a sign of immanent devaluation and debasement.
it isn't as if india hasn't already suffered from massive debasement.
making gold illegal is not quite like making alchohol and pot illegal, where there already is a stigma to doing those activities especially to excess.
it makes people want the stuff even more. there is no stigma with owner physical precious metals. it is a time honored tradition everywhere in the world....
since when do Pakistan & India, who point nukes at each other, co-operate on smuggling, even for gold?
Send in Jack Ryan, the A-Team, and the Mission Impossible team.
They're bound to solve all problems and keep our way of life. Now that zombies have taken over the world, the newest TV and Hollywood trend is spook shows/movies, with a common theme:
ALL spooks good & decent, ALL opponents bad & vicious. Wait till they rev up and add Preppers or Libertarians to the list of "dangerous people".
Davos, bitches!!!!
There's Gold in them thar hills.
indeed there is over $1bn of gold ore in them hills, not too far from davos, and the locals said no, nein!
Like sand through the fingers of a clenching fist...
The sensible governments of the world must work to stop that inherently evil, satanic metal from corrupting the masses and undermining the fiat welfare/warfare state.....
Gold Import Controls is going to do for India what Prohibition did for the US.
There already is a criminal underground that has been set up to move fold from Pakistan to India, and the only effect this will have is to let the criminal groups set up a system to move gold into Pakistan too... Nothing like controlling both sides of the distribution channel...
Although the Current account deficit of India has declined due to curb on gold imports as well as importing televisions and other hikes such as 100% on car imports (from 75% until mid 2013), however, the unintended consequence is major job losses and massive declines in stock prices of gold and diamond jewellers.
Current account deficit still remains at USD 50bn per annum. http://www.business-standard.com/article/news-ians/india-pegs-current-ac...
Job losses are mentioned by Aussie research as well: http://www.futuredirections.org.au/publications/indian-ocean/29-indian-o...
Though direct imports of gold affecting tax revenues are on, but smuggling is rampant from all the neighbours as well as Bangkok, Singapore and Dubai. http://in.reuters.com/article/2013/12/03/india-gold-smuggling-idINDEE9B2...
Job losses are at 1m and counting just in the past 6 months which impacts tax revenue loss as well as rise in crime and smuggling: http://www.hindustantimes.com/business-news/gold-import-curbs-millions-l...
Diamond industry in India also has laid off in excess of 35% employees in 2013 amounting to 350,000: http://www.diamondintelligence.com/magazine/magazine.aspx?id=12434
Largest jeweller of India is 'only' 55% down: http://www.moneycontrol.com/stock-charts/tribhovandasbhimjizaveri/charts...
Second largest jeweller is 'only' 89% down. https://www.google.com/finance?q=NSE%3AGITANJALI&ei=-GzdUrClGMStwAOldw
One of the largest diamond companies is under default and liquidation proceeding perhaps in the next few months. The owner has gone missing: http://www.business-standard.com/article/companies/lenders-serve-legal-n...
Another article summarises the major job losses if this gold charade continues. http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=222055&s...
Pakistan will suffer and they are doing the right thing by officially stopping gold imports to help themselves and unless they enforce it strongly, their USD reserves will keep shrinking. Loss of tax revenues is just a by product and an unintended consquence while smuggling will rise and create a stronger black economy both among its neighbours and within India to satiate the gargantuan retail gold demand across India.
Pakistan cannot idenitfy or control hoards of rebel forces crossing into and out of Afghanistan, and cannot figure out that the world's number one terrorist is living in their midst.... there is no way they can stop the flow of gold into (or out of) their country...
Yet another 'unintended consequence' of the central bank war on gold. The easiest way to curb gold imports into India is to let gold prices reach free market equilibrium -- such that increased demand equals higher prices. But nooooooooo, artificially low prices stimulate demand yet the price remains low... which only stimulates even more demand.... Thanks Ben!