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The FT Goes There: "Demand Physical Gold" As One Day Paper Price Manipulation Will End "Catastrophically"
What have we done: after a series of reports in late 2012 in which we showed, with no ambiguity, that not only might the Bundesbank's offshore held gold be severely "diluted" (follow our 2012 exposes on German gold here, here, here, and here), but that on at least one occassion, the Fed and the Bank of England conspired against the Buba in returning subpar quality gold, the Bundesbank shocked everyone in early January 2013 when it announced it would repatriate 300 tons of gold helt in New York and all of its 374 tons of gold held in Paris. But convincing the Bundebsbank to demand delivery was peanuts compared to changing the tune of the Financial Times - that bastion of fiat "money", and where the word gold is mocked and ridiculed, and those who see the daily improprieties in the gold market as nothing but "conspiracy theorists" - to say the magic words: "Learn from Buba and demand delivery for true price of gold", adding that "one day the ties that bind this pixelated gold may break, with potentially catastrophic results."
In other words, precisely what we have been saying since the beginning.
Welcome to the 'conspiracy theorist' club, boys.
From the FT's Neil Collins: "Learn from Buba and demand delivery for true price of gold: One day the ties that bind the actual and the traded commodity will snap:
A year ago the Bundesbank announced that it intended to repatriate 700 tons of Germany’s gold from Paris and New York. Although a couple of jumbo jets could have managed the transatlantic removal, it made security sense to ship the load in smaller consignments. Just how small, and over how long, has only just become apparent.
Last month Jens Weidmann, Bundesbank president, admitted that just 37 tons had arrived in Frankfurt. The original timescale, to complete the transfer by 2020, was leisurely enough, but at this rate it would take 20 years for a simple operation. Well, perhaps not so simple. While he awaits delivery, Herr Weidmann is welcome to come and look through the bars in the Federal Reserve’s vaults, but the question is: whose bars are they?
In the “armchair farmer” fraud you are told: “Look, this is your pig, in the sty.” It works until everyone wants physical delivery of their pig, which is why Buba’s move last year caused such a stir. After all nobody knows whether there are really 260m ounces of gold in Fort Knox, because the US government won’t let auditors inside.
The delivery problem for the Fed is a different breed of pig. The gold market is far more than exchanging paper money for precious metal. Indeed the metal seems something of a sideshow. In June last year the average volume of gold cleared in London hit 29m ounces per day. The world’s mines are producing 90m ounces per year. The traded volume was many times the cleared volume.
The paper gold in the London Bullion Market takes the familiar forms that bankers have turned into profit machines: futures, options, leveraged trades, collateralised obligations, ETFs . . . a storm of exotic instruments, each of which is carefully logged, cross-checked and audited.
Or perhaps not. High-flying traders find such backroom work tedious, and prefer to let some drone do it, just as they did with those money-market instruments that fuelled the banking crisis. The drones will have full control of the paper trail, won’t they? There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults?
John Hathaway suspects there is. He worries about all the paper (and pixels) linked to gold. He runs the Tocqueville gold fund (the clue is in the name) and doesn’t share the near-universal gloom of London’s gold analysts, who a year ago forecast an average $1700 for 2013. It is currently $1,260.
As has been remarked here before, forecasting the price is for mugs and bugs. But one day the ties that bind this pixelated gold may break, with potentially catastrophic results. So if you fancy gold at today’s depressed price, learn from Buba and demand delivery.
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Yes, but it will only be a virtual stake, with virtual flames, so no great worry.
at least you don't hate it!
i don't give a single fuck about bitcoin.
No problem to me.
Paper price. Physical Price.
Rob McEwen On Goldcorp's Hostile Bid, M&A Opportunity And Market Bottoms
With general equity markets sliding into the territory which will challenge Bernanke's Happy Exit with Tapering, time is to listen to those who have seen and have done it. Rob McEwen is dissecting the recent market situation in Gold and M&A activity, which will make the best stories in the market to move very fast from the bottom. McEwen Mining has bottomed at $1.65 in December and has closed at $2.63 last Friday. Los Azules Copper project will be the one of the coming M&A stories this year, which will move valuations of McEwen MIning and TNR Gold. TNR Gold holds shares of McEwen Mining after the settlement on Los Azules. Rob McEwen has announced on Twitter about the commencement of drilling in Nevada now. With Gold crossing $1270 and closing just below it we have a very exciting time for the best stories in junior mining these days. http://sufiy.blogspot.co.uk/2014/01/rob-mcewen-on-goldcorps-hostile-bid-...
Now all the manipulations in the Gold market and constant smashing down the price in 2013 are coming into another perspective. Germany is very serious about the investigation of the manipulations in the Gold market - it was already reported thatprecious metals manipulation is worse than LIBOR scandal. This investigation has already claimed the first victim: Deutsche Bank to withdraw from Gold fix amid probe.
With the highest on record leverage at COMEX of 112 owners for every single ounce of Gold and record low COMEX registered Gold at 11 t we have the set up for the major blow out phase in the Gold market. Who in their mind will continue to hold Gold at LBMA any more? According to Eric Sprott, we can expect a failure to deliver Gold and lawsuits with deliveries last February from COMEX of 40 t and China buying at least 100 t of Gold every month on average now.
Once Gold will breach $1270 level Andrew Maguire's discussion about the massive short squeeze will become the reality and even if his predictions about $200 Up-days will not materialise, the move by Gold to the upside from the most oversold condition in history will be nothing less than spectacular. http://sufiy.blogspot.co.uk/2014/01/there-is-no-german-gold-left-at-new....
Sufiy
I don't disagree: Yes many people are being fooled about the true value in their gold derivatives
Beyond that, please educate me:
Why is the ComEx inventory in and of itself so important?
Is it the only inventory?
If not, then what percent of the total?
Thanks
I don't get the -1! I am politely respectfully asking for information, so I can have an informed opinion
the whole fucking universe of gold, both physical and paper is one bunch of bullshit. because we are in a state nothing true, who can you believe. get corzines opinion too. one clusterfuck of confussion with anyone selling the shit saying buy, and all else pushing paper investment say is a waste of resource. who to believe, not hat i approach it that way. personally if i cant understand i stay away. since ive dabbled in gold it has become clear to me the more you try to understand the more fucked up it IS and quite frankly NOBODY knows how much and where the fuck it is...
ask sufly above where is the gold and who owns it-phyzz-he will give you ten theories based on outdated lies, because everyone is,lying to protect their valueable stash wheather it is one once or a million.
one fucked up crap shoot of who know what the fuck is here or there...
Serial junker on the loose. Ignore him/her/it. To acknowledge them makes them feel special.
Miffed;-)
Thank you! This helps my sanity
Looks like both Sanford and Son are out loose slinging junk today....
The haters are out in droves indiscriminately down arrow everyone who favors gold. Tyler knows who they are and maybe a warning may be due.
Euharisto!
Mahalo!
Come off it! This is f ... this is a place, I promised not to talk about!
Don't worry about it UT - some asshole troll is downarrowing ever damn post on this list. Maybe a JP Morgan intern or other low life. Go back and scroll down through all the posts and see how many innocuous posts have one down arrow.
Dumb fuck - consider it a cost of posting on ZH these days - this seems to be happening on a number of threads.
Thank you! This helps my sanity
Do you really care if someone else "Up Arrows" or "Down Arrows" you?
Please junk all of my posts. It will not change my message. My behavior will not be modified.
The truth is that I do not care. What I am amazed about is that so many of you do care.
Are you seeking validation? Does that validation, somehow, mean that you are "good"?
Are you avoiding repudiation or anything negative? Are your beliefs and convictions so damned weak that any repudiation is taken as an affront to your self esteem?
I am amazed. You are on the internet writing to a bunch of people that you do not know. (Well...Some you may know better than others...) For the most part you do not know the others. You may even encounter them on another level and not know that they are posting on ZH. (They may be embarrassed to tell you as this is a fringe group of pirates.)
I do not care if someone junks my posts. If that puts lead in their pencil then they can knock themselves out.
My self esteem is not dependent upon someone else validating what I have to say.
(In fact it is when they do not validate what I write is when I am at the edge of possibly learning something new....something that I did not know.)
Zerohedge is not a popularity contest...at least not for me.
Only as a kid did I care about popularity contests. Since I never won one I kind of grew up and out of that expectation. So I learned to tell others to kiss my ass.
I did not care to develop my "Social Skills" after my ostracizing as a Drain Bamaged Disabled child. I guess that turned out advantageous as my self esteem is not dependent upon others for validation.
Don't take the serial junker personally. Enjoy the butthurt expressed by the limpdick cocksucker.
Thank you and everyone. I guess anonymous invites people like that.
ZH has doggedly bought the truth to light.
Is this the straw that finally breaks the back of the fiat ponzi?
The problem is that the parasite is now so powerful and integrated into the host, that killing it now will probably also kill the host.
Oh well... Western civilisation was pretty good while it lasted.
As the headline rightly says
What have we done?
Maybe they didn't read the contract carefully where delivery could be settled in cash. No default or lawsuits. What could go wrong?
Sufiy you're articles are great fyi. very enlightening... makes my head spin around and around and around with joy
fuckin bankers walking around pinching their ass cheeks together with their left hand to keep from shitting in their pants. things are getting pretty loosey goosey, here.
If gold no longer matters (according to the central banks, most notably the Fed)... why would it matter if they came out and said "there isn't any gold and hasn't been any for a long time"? Shouldn't matter, right? Things should just keep clicking right along with the dollar still being the world's reserve currency. Right?
Somehow it still matters, through. Or else why all the secrecy?
Yeah if you don't mind Bundesbank, to avoid re-assaying and shipping costs, we'll just settle in USD at spot price as we understand that was always an option for us.
Please send us your wire details........Bitch.
$13 billion by my reckoning...$13 lousy billion. Yellen will have printed that by next Thursday. What's the problem??
A vivid illustration of the absurd false pricing of God in fiat.
Writing of Buying Stairways to Heaven? How much does God cost in fiat?
There are a lot of hayfields up near Brixton. One in particular. It's got a long rock wall with a big oak tree at the north end. It's like something out of a Robert Frost poem. It's where I asked my wife to marry me. We went there for a picnic and made love under that oak and I asked and she said yes. At the base of that wall, you'll find a rock that has no earthly business in a Maine hayfield. Piece of black, volcanic glass. The Bundesbank can find their gold there.
Andy Dufrane has a bit more credibility than the Fed.
Yeah, he only crawled through a sewer pipe.
The Fed is the sewer pipe including all the toliets the convicts shit into.
The look on Weidmann's face as he threw the rocks at the Raquel Welch poster on the vault door of the NY Fed
we should file that under education auten we
alrite then, mr down arrow. you shore have purdy lips. where would you file it mr cornhole champion.
Since you've come this far maybe you'll go a little bit farther. You remember the name of that little town in Mexico?
... crap!
If referring to "Sheepshank Redemption" Beach town was Zihuatanejo. (sea-wat-ta-nay-ho) Milestones
Well, thak goodness that's taken care of now. I was getting a bit concerned there for a moment.
I see our serial junker just had his mommy delivery of Pop Tarts to the basement and is settling in for a long day.
Good morning, sweetie.
Yes, he seems to have struck between 11:01 and 11:04
"First they ignore you, then they laugh at you, then they junk you, then you win."
Mahatma Durden
Great! I really LOL'd !!
Watch this, Down Arrow Troll:
<<<<<<< ha ha ha. Beat you to it, down arrowed myself....kinda late on this comment thread.
Surpise bitches!
We have some socialists coming over from daily kos. They are upset that socialist dreams always end the same way. Gross misalkocations of capital etc. Etc.
They and bath house Barry thought they were smarter than the previous socialists and statists, but at least a few are beginning to wake up enough to take us seriously and come over to junk us.
Waking up to reality is uncomfortable. Give him some slack. This is all part of his metamorphosis.
Read some Hayek. Friendly junker.
History always repeats, first as a tragedy then as a farce.
"But one day the ties that bind this pixelated gold will break, with catastrophic results for the professional liars."
FIFY. This will be one of the more spectacular events in the cascade of truthiness that will drown the pumped-up fiat fiasco.
occasion is one of the most mispelled words in the english language.
I thought LOSE was.
I thought it was Barrack Obama.
Lose the booze.
Loose the mousse.
Okay, start over...
Loose lips lose wars.
Hope everyone has their shit together. It's about to get REAL.
'WOLF'!!!
I've been hearing that for 5 years now. Is it really going to get real this time? Or should I get a get a cash out re-fi on my house and go all in with TWTR?
5 years? Please ... Ive been reading about these imbalances since before 911. Something will eventually collapse the system but it will come like a thief in the night. Enjoy everyday and do at least 1 thing everyday to prepare.
Remember when there used to be sports events.
And now the sport is avoiding the street rioting.
And when a dollar bought something,
and now you use it to light the kindling.
Good times.
50/50 (50%) chance overnight.
2/7 (28.6%) chance over weekend.
2/7 = 28.57%
:o)
what the hack, make it 22/7.
3.14159265358979323846264338327950288419716939937510 58209749445923078164062862089986280348253421170679 82148086513282306647093844609550582231725359408128 48111745028410270193852110555964462294895493038196 44288109756659334461284756482337867831652712019091 45648566923460348610454326648213393607260249141273 72458700660631558817488152092096282925409171536436 78925903600113305305488204665213841469519415116094 33057270365759591953092186117381932611793105118548 07446237996274956735188575272489122793818301194912 98336733624406566430860213949463952247371907021798 60943702770539217176293176752384674818467669405132 00056812714526356082778577134275778960917363717872 14684409012249534301465495853710507922796892589235 42019956112129021960864034418159813629774771309960 51870721134999999837297804995105973173281609631859 50244594553469083026425223082533446850352619311881 71010003137838752886587533208381420617177669147303 59825349042875546873115956286388235378759375195778 18577805321712268066130019278766111959092164201989...Chief, you have it exactly right - enjoy today and do something to prepare. Picking the day, month, or even year is a fool's game.
But break it will, just as did Rome, Britian's long decline, various Chinese dynasties - history has lots of documentation of the rise and fall of empires, and the present more or less world-wide central bank/fiat empire is gonna break - someday.
I hope I'm not around to see it, because it will be the most widespread reset yet - not one 'heard round the world' because it will be worldwide.
I hope it will be slow enough to prevent mass ugliness - I have grandchildren.
My intent is to hang around on this planet long enough to see it all unfold. When they can't stop plugging the leaks and the dam finally bursts, there are a lot of people I want to say "Told you so!" It's gonna happen anyway and the sooner it does the less extreme it might be, so there's no bad in wanting to be here for the main event.
Yo Chief - The Fed only started printing $1T / year in 2009. $4t total and still counting.... this causes your 2000 "imbalances" to explode. Watch the Int'l scene. for timing,... it's coming within 6 to18 months.
5 years ago was 2009. Are you implying that everything between then and now has been fine?
And why would you want to take on debt to buy something at its all time high?
Oh, you're just trolling. Sorry, nevermind, carry on.
I believe it was mocking sarcasm cockhole!
Ben Shalom Bernanke and Mr. Yellen both know the implications of a gold run. They will err on the side of recession and a mild deflation rather than risk it.
Buy your precious shiny stuff now, but at the peak of the histeria buy puts or go short on the paper. We have a few more of these cycles to go before we get to the final chapter
This is exactly what they will at least try to do.
Modulate QE to achieve a controlled deflation./ deleveraging.
It probably won't work , but they will try anyhow.
They really think they can tame this creature!
I think they ultimately lose control but not for a while yet.
It is too.
To many, too much is too much.
There is a plethora of posts that have the words 'to much' which should always be 'too much' because it is not too difficult to include one more o and make it too much, which is not too much to ask.
excuse me, excuse me. to properly use too, one should replace it with also. if i makes sense then it is the proper use of too. i got that one from school house rock.
Mulskinner
Now that's two much.
The impossible sentence to write as spoken is that there are three "tues" in the English Language. Which word does one use?
That is a good one for the kiddos. Bet them a chore that you can say a sentence that they cannot write.
I understand that "tues" is not a word but an abbreviation.
I need three more years to stack Start printing old yeller!
It's long be known that the FT has a downer on GOLD.
Because they have turned their noses up to the extent that they have, one can rightly assume that they have an "agenda".
If that agenda is prevalent throughout their editorial policy then what are we to believe of the remainder or their output.
Certain "journalists", and I use the term loosly, are on a par with Paul Krugman.
Very little actual reporting, always opinionated and usually wrong.
This appears to be a break with tradition.
Have they woken up at last?
Or have they realised that when TSHTF they will look pretty damn foolish if they don't change their stance.
Also don't discount dis-information campaigns- be skeptical of everything and use common sense- for me I trust history -
Can we give everything to everyone forever?
Can we avoid all pain and natural law?
Maybe for awhile but the longer we spin more and more plates ... Well you know how it ends.
Here in California, it might be combo platter of stock market collapse, the fiat money/gold rehypothecation game exposed, and a nice long drought. Time to run to Costco for popcorn.
You might want to buy a lot of popcorn, they can keep this propped up for a while longer.
In the long run the climate will redistribute the fertile land.
It may be time for the sahara desert to bloom again
Please don't call it the Sahara desert. The word Sahara means desert so you are calling it the Desert desert,parts of the Sahara are already very fertile, like the Nile Delta, gets its fertility from the silt washed down from Ethiopia and the irrigation water as well.
The climate doesn't make the land fertile but the soil andthe rock it comes from. All the climate does is provide good growing conditions.
"The Nile Delta, gets its fertility from the silt washed down from Ethiopia." Didn't the Aswan Dam put an end to that?!
Might want to stock up on water too. Popcorn and drought make for a thirsty time.
and gravity (2 gallon) water filters.
Radiation from Fukushima is the cherry on top. I wonder how all that high priced coastal RE in San Diego is going to keep its value. Perhaps they will make Geiger counters on the beach illegal.
Miffed;-)
"Radiation from Fukushima is the cherry on top."
Whooops!...der it is....whoops!!...der it is...
The radiation in our neighborhood has been on the climb up for the past month. It is at 61 CPM under chemtraily skies tonight. That means moar of the distractinary freezing weather for all those east coast folks.
After checking several vegetables last week, we have now come to the determination that the foods are higher in radiation counts than our environment is. Ra-roh! That darn radioactive stuff sure gets into everythng, and not much can stop it.
Are you also living in San Diego, like myself, and Miffed???
You got it right Meat Hammer, but the order is wrong, at least for rural folks. I'm in the boonies, and we are only in 'moderate' drought in northern CA, but there is already some (cough) tension. My neighbors would basically not give shit if the market crashes or fiat/gold goes tits up - but fuck with their water and the guns come out.
One more year of this drought, and things are gonna get real fucking ugly out in the country.
Rain dance time Bitcheezzz.
this guy's over in s.oregon. doing some very cool stuff in capturing water on his property.
http://www.youtube.com/watch?v=_X-BMbLBozA
I'm happy that there is papergold or else I would have been late to the game. Thank you paperpushers :)
Now bring it!
Ugghhhh, and from my precious FT no less! I demand a retraction, clarification and new buzz for my stable of equities that I'm counting on to retire: FB, AMZN, GRPN, TWTR & ZNGA. /unhappy face
1st rule in business....
Its all unicorns and skittles, until it isn't (court, stock crash, bankrupt, lawsuit).
Showtime.
Congrats, ZH. You're becoming mainstream.
I've heard Mark Levin mention the Hedge a few times now. Welcome to the big time, Tylers!
http://www.youtube.com/watch?v=MkHvW30oaoQv
Mark LEH-vin is just another Jewish neocon warmongering cocksucker, a Limbaugh wannabe, a faux-small-government wolf in sheep's clothing. Screw him and the Hasbara he rode in on.
The dude went All-in against Ron AND Rand Paul if I remember correctly. Fuck him with a 10 foot pole.
You have got that one spot on, akak.
He is part of that neocon problem.
damn...time to move on. why didn't anyone follow the first fucking rule of fight club.
See the cat, see the cradle?
Yeah, yeah continue to follow the lemmings trail. 19xx - down into 12xx. Was quite profitable.
I sold in September 2011. And I will buy back in summer 2014 when it's in the 3 digits again. And not a second earlier. Even if ZH repeats it's never ending mantra another million times.
In the meantime - for the sheep and lemmings which still haven't gotten it - the rally takes place in Indices and USDJPY and JPY crosses. So see ya again when S&P is way way over 2K. And ZH gets slammed with a shit storm of it's lemmings and sheep after such a gold post like above.
Then and not before will it be again time to buy the shiny yellow stuff again.
Yeah, I still marvel at how you sold all of your tech stocks on March 10, 2000, and then all of those levered Florida condos in mid-2006.
You are a timing savant, and I will happily follow your advice this time around as well.
Lol. Maybe, gold hamster.
I think we have seen the cyclical intermediate low.
I am happy to buy gold at this level.
And I am very patient I will get to buy even more at a better price if you are right
When I first read "19xx to 12 xx" I thought you were referencing P / E multiples. Not there yet but we will be.
Call me a skeptic but I contend that the illusion of value should not be held to close. The value of a building changes when a tenant goes bankrupt. The value of a currency when everyone starts to sell it and even the value of gold when a government confiscates it and makes it illegal to sell and own can be difficult to determine. And most of all tell me the value of a promise on paper or implied, remember if you own gold that is represented by a certificate, you own a piece of paper. A deeper look into what determines the value of anythig in the post below.
http://brucewilds.blogspot.com/2012/11/what-is-something-worth.html
Diversify
Stay healthy
Have or develop a high value added skill.
That solves all problems.
the value of a promise on paper
withglee has an interesting formula. Says 'money' or 'medium of exchange' represents a promise to complete a trade, and interest is connected to defaults on a promise. Perhaps withglee can elaborate here.
Does every freakin' thing have to be initialized? It's not like spelling the full names of things out costs you extra ---->ZH.
(Though I guess the exertion to the fingers can be quite exhausting)
GTFO
Sorry that the ZH writers, whoever they are, like being "inside" rather than writing out titles like Financial Times.
It's lame.
Fuck Financial Times, Fuck England and the Queen
I would not fuck that old hag, the Queen of England, with your dick. I would probably fall in.
Looks like our -1 asshole is busy again.
AnAnon escaped wherever he's being treated and started posting again yesterday. Coincidence?
"The times, they are a changing" - Bob D.
You can stay in the tower of paper-power, but then you gets the Golden shower. I knew you'd be surprised! (play on words from 2 Zappa songs)
Fort Knox audit: "Look, here is your pig in the sky".
By now everyone and their pet hamster (even the FT) knows that there's no bloody gold at the Fed - it's all been evaporated, rehypothecated into electronic bits long ago, and any loose physical stuff sold off/hidden in the cellars of tptb. Jamie Dimon wouldn't have spent half of 2013 offering blowjobs to wholesalers for gold to cover the withdrawals from his empty vaults if it were otherwise, and the Fed wouldn't be telling the world to fuck off every time a country wanted to store their gold in their own country.
Whenever I read an article on gold by the msm, I feel like we're all being openly mocked. One thing I've learned, true price discovery will only happen when the corrupt system is broken beyond their ability to fudge, evade, and print. Could take awhile, could be tomorrow. It's a long term SOV for my retirement as far as I'm concerned so what happens to it this year has no bearing on stacking and prepping. I know some can't wait for the collapse, but it is a frightening prospect to imagine the chaos that will ensue when trust vanishes in the currency. I reckon 2014 will be the year of the Propagandists who will thicken the airwaves with how wonderful things are at home and divert blame to external entities - same as last year, but more.
Heartily agree. This is a classic confidence trick game. Has anyone seen a shell game played with see through shells? I am glad they have fooled so many for so long in the sense it gives me time to plan for the eventual collapse and horrifying reaping. When it blows, things will move quickly and it will be too late for most. Planning for retirement has been replaced with planning for survival. I've been laughed at for so long by so many it can shake ones resolve at times and in many ways I hope I am dead wrong. Envisioning the scenarios if I am right can be very disturbing. Without infinite resources, it can be challenging to position oneself on this chess board.
Miffed;-)
au has much room to go higher, the real rate of 5yr t-note is currently negative.
http://www.treasury.gov/resource-center/data-chart-center/interest-rates...
http://www.treasury.gov/resource-center/data-chart-center/interest-rates...
Is Krugman going through and down arrowing everyone??
Someone's been doing that for several days.
And a reminder since gold and silver is a commodity not money since it is not recognized as a monetary metal. The Comex is and it's fractional reserving system is outright illegal unless they are lying about gold and silver not being monetary metals anymore.
http://austrianeconomics.wikia.com/wiki/Fractional_reserve_banking
...
These decisions were taken over by the American courts and so was FRB legalized. However, an interesting development occurred in grain warehouse law, which has developed in precisely the opposite direction, despite the conditions of depositing fungible goods were exactly the same, and grain was a general deposit and not an earmarked bundle.
In the history of the U. S. grain market, grain elevators several times fell prey to this temptation, spurred by a lack of clarity in bailment law. Grain elevators issued fake warehouse receipts in grain during the 1860s, lent them to speculators in the Chicago wheat market, and caused dislocations in wheat prices and bankruptcies in the wheat market. Only a tightening of bailment law, ensuring that any issue of fake warehouse receipts is treated as fraudulent and illegal, finally put an end to this clearly practice. Fractional-reserve grain warehousing, that is, the issuing of warehouse receipts for non-existent goods, was clearly seen as a fraud.
...
Grain is not different than gold or silver when gold and silver are not money or currency now is it....
If the Comex is not fractional reserving then that means every ounce of eligible should correspond to it's fungible equivalent in gold or silver. That means movements in that column if not for fractional purposes is to..... (use your fucking brains and apply a little critical thinking to finish the sentence).
Touché . . . Non?
But then how often does rational thought and common sense enter into courtrooms or "law" (rules really that are derived from actual law - to wit : The Constitution)
It is simple to understand non fractional reserving means a 1 to 1 relationship between x and f(x) for any movement from one month to the next based upon the rules of the Comex.
You have to take the most simpliest case scenario and create 1 to 1 relationships for all possible moves in, out and around the system.
Look at historicals movements from one month to the next you suspect is not right.
If the movements can't be factored down to those root case 1 to 1 relationship scenarios like for example x^2+4x+4 can be factored into (x+2)(x+2) then it is fractionally reserved. Math works in both directions, they don't teach you this in in the public re-education centers or PHD moron factories because they don't want you to be too much of critical thinker and only thing in a narrow focused one way direction.
Why does this prove it is fractionally reserved.
There are only 4 types relationships available
One to One
One to Many
Many to One
Many to Many
fractional reserving means it is one of the other 3.
It is an airtight mathematical proof, it only has to fail once to prove it is in any of the data sets.
I can't find the FT article ZH speaks of, but found an FT article that said "Litttle glitter for Gold in 2014". Nothing on their site, and Google searches all point to ZH.
On the other hand, I found an investor site that reflects the ZH article:
http://www.resourceinvestor.com/2013/05/07/physical-gold-demand-shows-bu...
It's behind a paywall
===
Learn from Buba and Demand Delivery for True Price of Gold
By Neil Collins
Financial Times, London
Friday, January 24, 2014
http://www.ft.com/intl/cms/s/0/1586a7fe-84d6-11e3-a793-00144feab7de.html
Here is how you get behind the wall.
Google Learn from Buba and Demand Delivery for True Price of Gold
click link to the article:
Inside London
The FED has the morality of the theivingt gypsies that wandered the forests. They are CROOKS with the integraty of the common street person. They are scum. Arrest them. Throw them into prisons. redistribute their stolen wealth.
Or pay the consequences.
if all the gold goes west to east could that affect the earths rotation and cause the whole fucking mess to spin out of control-hehe
ARE YOU A CONGRESSCRITTER ?
Been some 14,000 wars over the history of mankind, so a few more will probably happen in the future.
All economic wars disguised as something other, cloak and dagger, no benefits, just more misery because some one percenter wants more shite to feck up.
If you have precious metals, you're in good shape these days, if it is of any consolation. Sure feels good to know that the boat sunk, can't be found, located in parts unknown, maybe in the Bermuda Triangle, and when that ship needs to come back to shore, it will miraculously be there.
Some history, beginning 1812:
June 12: France invades Russia.
September 14: Emperor Napoleon I (1804-1814) entered Moscow to a burning city that burned for three days destroying all provisions. The troops burned 90% of the houses and 1,000 churches. Hunger and an early and severe winter wore out the retreating soldiers. Napoleon said had he not laid hands upon the Papal States and tried to subdue a spiritual power through force the rest of my misfortunes would not have occurred. He had lost the Catholic support in 1808. He brought the Sacred College of Cardinals under his power and moved it to France. The invasion of Russia cost France 332,000 soldiers, most died of starvation and were frozen to death.
In 1814, the British representative at the Congress of Vienna insisted on the abolition of the slave trade being included in the International Treaty. This Treaty was signed by all the European powers on 9 June 1815.
1815
Napoleon escaped saying to the crowds "you have let yourself be led by the priests and nobles who want to re-establish titles and fiscal laws. I'll deal with them. I'll string them up." He is defeated at Waterloo in Belgium by Wellington and the Prussian army. On orders of the Bourbon's of France Count Charles Tristan de Montholon poisoned Napoleon at age 51 on the Island St. Helena. It is said he put arsenic in his wine.
http://www.telusplanet.net/dgarneau/euro71.htm
Whiney little brat, always blaming somebody for the shithole he made, not his stupidity.
A didactic in there somewhere.
but....but....but...wait John Corzine told me it was OK to rehypothcate Germany's gold.........I mean.....it was just supposed to be until we could pay back the Chinese......any day now. Promise. Really. Anyway they're just a bunch of Jew haters over there. We have no need for that and we had a war or two to fight against the Arabs to defend Israel.
The journey of gold to regain its proper place as a true store of wealth/medium of exchange has been a slow and arduous event, going back decades. It's been like watching the hour hand on a clock...you know there is movement, but you just can't see it. Now its more like watching the minute hand...you can catch glimpses of movement, even if out of the corner of your eye. At some point well be seeing events unfold at the second hand level. If you haven't got your house in order by then, your gonna have a problem.
If they had plutonium to exchange for the gold they'd have it all already.
And that's why they have the best cancer treatment doctors.
They should have plenty of newcleur (thanks gwb) fuel.
Didn't they shut down all the plants to switch to "green" electricity?
Wonder how that's workin in the Polar vortex global warming climate change meme?
Just to make some things clear: If it is germany you are talking about - well, there are roughly 240 metric tons of Plutonium in its possession, but not sheer. So because of the Pu 240 contamination it is not readily suitable to build bomb-pits. Besides that: Did you know that germany once was the greatest producer of uranium ore in the whole world?
Look here: http://en.wikipedia.org/wiki/Wismut_%28mining_company%29
The first soviet atomic bomb was built with uranium from germany!
By the way: Not all nuclear power plants have been shut down. Nine of them are still up and running.
Movement towards stable stores of value, like gold, are slowly breaking through the MSM. This is good news. People are realizing that the necronomy is worse, not better, after 5 years of desperation and experimentation by CBs.
Side Note: I don't own BTC but have been watching it. i have no doubt I should buy some because I think they have great utility as a diversity tool and for moevement of funds when traveling. I think BTC will explode up in price along with gold. Lack of available physical PMs and exploding prices which will make people turn to BTC like they did with the Cyprus panic. I agree with Rickards that BTC can be tracked and will be taxed by the IRS as a capital gain when exchanges are performed so be caution and creativity advised.
"Bitcoin is an interesting phenomenon.... I’m not anti-bitcoin or [a] bitcoin basher.... I understand them technically.
The only thing I say to bitcoin people is, watch out for a couple of things. Number one, if you buy a bitcoin at one level and you redeem it for goods or services at a higher level, you have a taxable gain you have to put on your tax return. I daresay, very few people are doing that so they’ve all sort of become tax evaders.
And, a lot of people think if you’re in the bitcoin cloud the government is not watching, they are watching. So, consider the fact that you may be a tax evader and the government is looking over your shoulder, this will play out in time. So there is a little bit of caution in the bitcoin world."
--Jim Rickards, Financial News Network, January 21, 2014
I would add that as part of the ongoing financial repression, I think the IRS can now include the confiscation/cancellation of your passport if the IRS 'thinks' you may owe $50K (or more) to the IRS. So, you will efffectively be under house arrest within the USA until you demonstrate otherwise. Obviously, any significant amount of BTCs could be an issue. Caution.
i don't see the problem even if you are paid for gold shares in fiat currency, that was the purpose to hedge the effect of monetary inflation against the day global monetary inflation reversed. owning physical means you have to redeem it twice, once into currency, and another to use it in a transaction. (just because you hand the clerk a gold coin it doesnt mean the value isnt' being set the value of the fiat on that day, and i will the first to admit that there will probably be a discount applied to those buying with gold in a financial crisis in order for the seller to avoid the hazard attached to rapidly shifting paper currency value, but in theory it always works this way. paper money allows us to standardize the value of goods and services) of course bitcoin might do that, better if it was a transaction only currency.
Ya - there wouldnt be a problem if there wasnt rampant fraud. The fact that every ounce has over 100 claims against it means that demand for gold is much higher than the price indicates. In other words, you are not getting any hedge at all - you are suffering dilution of your value.
Demand gold, and get rid of the rehypothicated frauds - then you will see a price that reflects the true value, and it will actually work as an inflation hedge.
If you have it in hand, there is no counter-party risk, no 500 guys claiming the same coin or bar...
Stack on! It's still on sale.
its fraud insurance, and you get paid for it, its better than a TIP. if there isnt enough gold to meet demand the price will go up, even bernanke cant fix that.
So, you see "clerks" handling transactions, during the reset?
In other words, you see no problem for gold ETF 's to reneg on their commitments, commit fraud, etc. In fact two Dutch banks have already done so. So the word "gold" becomes a mere marker to protect (maybe) from monetary inflation. Not to mention the depressing effect on the quoted price of gold of these continuing frauds.
reneg on what committments, you think you have a right to trade one share of GLD for an OZ of gold, READ THE PROSPECTUS. in the end they will give you the fair money value of the gold. that's about 99% of what you hope to accomplish when you buy gold. the mass ignorance is amazing
Your argument (apart from the insult - every donkey has his hee-haw) cements my determination to deal in precious metals only in physical. The public (even you ) believe they are buying gold when the invest in a gold ETF. The fine print you quote is a clear indication of the intention to deceive.
So your assuming I'll take a currency in trade for food, firearms, ammo, etc? I see Silver as more realistic to use in trading but gold will work, paper can be used to wipe your butt or start a fire but in really bad times I won't be accepting paper for anything.
Make sure you have a way to test that precious metal to see if it's legit.
Warren Buffet singing while playing a banjo?I thought America has been reduced as a nation to mindless TV talk shows?Who would have guessed that such a star performer as Buffet would be singing his last Keynesian hit?
Transcript from a secret NSA phone tapped conversation between the FED & the BUNDESBANK:
BUNDESBANK phones the FEDERAL RESEVRE;
Ring, ring, ring... ring, ring, ring...
FEDERAL RESEVRE:
> "Hello."
BUNDESBANK:
> "Hello, dis is da Bundesbank calling, we received only 37.5 tons of our Gold in 2013, we were expecting delivery of another 50 tons of our Gold... where is it?"
FEDERAL RESEVRE:
> Click noise.
BUNDESBANK:
> "Hello, dis is da Bundesbank!, is anybody there?, hello?, hello?, hello?... is anybody there?"
FEDERAL RESEVRE:
> Blank dial-tone sound.
BUNDESBANK:
> "Scheiße!"
The Fed is having a Turkish, Buba is being mugged off, this is going to get proper naughty.