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And The First Thing Ukraine Will Buy With IMF Money Is...

Tyler Durden's picture


A month ago, it was alleged, that Ukraine - under cover of night - loaded its gold reserves onto a plane and shipped them off (for safekeeping) in the US, as the potential price of 'liberation'. So how ironic that, given the massive gas debts that Ukraine owes to Russia (and prepayments pending), and sizable bond maturities pending, the first thing that Ukraine's National Bank governor will be buying with his freshly minted loan from the IMF is... buy a billion dollars of gold.

We presume Gazprom still gets its payment and bondholders get paid off - because that seriously impair 'investor confidence' which is, as they note below, is what is crucial to stabilize the nation's economy... but it seems the Central bank has other priorities...


As ITAR-TASS reports,

Kiev will use the first portion of the International Monetary Fund (IMF) loan for augmenting its gold and currency reserves in order to stabilize the financial situation in the country, National Bank Chairman Stepan Kubiv said on Monday, May 5.


Over $1 billion from the first portion of the loan will go into the gold and currency reserves of Ukraine, which will strengthen the financial system of the country. The remainder will go to the budget to stabilize the macroeconomic and financial situation in Ukraine,” he said.


Kubiv believes that the IMF loan “will send a positive signal to foreign investors and domestic entrepreneurs, improve the investment climate in the country and stabilize the hryvnia”.


On April 30, the IMF Board of Governors approved a two-year standby credit facility of $17 billion for Ukraine. The first portion will amount to around $3.2 billion.


What is odd is that Ukraine's gold reserves have been soaring in recent years - so it's hardly been a confidence-inspiring move for Ukrainian entrepreneurs and foreign investors so far?


So the big question we are left wondering is - whether all the IMF is doing is "giving" Ukraine money so it can buy gold as proxy for the NY Fed...
with that next batch of gold also set to be confiscated by the Fed and shipped off to Germany (and maybe even Switzerland) to cover their growing repatriation demands.

One wonders if this news has anything to do with the fact that since the approval of the IMF "loan" gold has had its best 2 days in 4 months...


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Tue, 05/06/2014 - 08:50 | 4731382 Xibalba
Xibalba's picture

Hopefully the Ukrainian people will see through this shitshow and fight back. 

Tue, 05/06/2014 - 08:56 | 4731400 Badabing
Badabing's picture

Don't ship it by air! Gold makes airplanes disapare

Tue, 05/06/2014 - 08:59 | 4731422 old naughty
old naughty's picture

You may be right...

If 2 tonnes made one disappeared, $1B buys 10 times.

Just saying... 

Tue, 05/06/2014 - 09:03 | 4731431 Badabing
Badabing's picture


"disappear" i feel better now, i had my coffee

Tue, 05/06/2014 - 09:08 | 4731451 cifo
cifo's picture

No danger here. They will probably buy paper gold.

Tue, 05/06/2014 - 09:12 | 4731467 Atlas_shrugging
Atlas_shrugging's picture

augmenting its gold and currency reserves in order to stabilize the financial situation in the country =>  define "its" as "pockets of certain .00001% before they flee"

Tue, 05/06/2014 - 09:30 | 4731534 THX 1178
THX 1178's picture

A billion dollars of gold and a c-130 to somewhere

Tue, 05/06/2014 - 09:33 | 4731544 GetZeeGold
GetZeeGold's picture



Word is Germany is going to want to take a look at that gold.

Tue, 05/06/2014 - 09:35 | 4731553 Latina Lover
Latina Lover's picture

Bet it will be ¨Gold¨held in custody by the FED.  The Ukraine will be punked on their gold holdings twice, LOL:

Tue, 05/06/2014 - 09:49 | 4731601 BaBaBouy
BaBaBouy's picture

MEANWHILE.. The GERMANS Are Still Waiting EMPTY-HANDED For The Return Of Their GOLD From The FEDerales...

Tue, 05/06/2014 - 10:00 | 4731665 Pladizow
Pladizow's picture

The IMF will sell them the gold. It will only be paper gold. So IMF gets back $1Bil and Ukraine pretends to have $1Bil of Gold.


Tue, 05/06/2014 - 10:13 | 4731723 espirit
espirit's picture

Putin should insist on the Shiny.

Tue, 05/06/2014 - 10:16 | 4731737 nope-1004
nope-1004's picture

Either no physical involved, or Putin is demanding payment in gold and the story has to be fed to the public on the down low.


Tue, 05/06/2014 - 10:31 | 4731804 SumTing Wong
SumTing Wong's picture

"We're all Ukrainians now!" (Or was that U-Keynesians now...)

If the IMF gave me a billion USD as a loan, I'd be buying shiny stuff too. 

Tue, 05/06/2014 - 10:37 | 4731826 strannick
strannick's picture

Now when the Russians invade they can send THAT gold to the NYFed too. Just like they did with their gold last month. Or like the Germans did in the cold war. At least there was only a chance of theft with the Russians. Withe the Americans, theft is guaranteed.

Tue, 05/06/2014 - 10:39 | 4731835 SoilMyselfRotten
SoilMyselfRotten's picture

Buying a $1 billion in gold....and watch the price drop in Bizzroworld

Tue, 05/06/2014 - 12:33 | 4732243 J S Bach
J S Bach's picture

"And The First Thing Ukraine Will Buy With IMF Money Is..."


And the first thing the Vampire Squid International Bankers will steal when their puppets eventually take over will be...


Tue, 05/06/2014 - 13:02 | 4732368 SoilMyselfRotten
SoilMyselfRotten's picture

Maybe you haven't heard of the Wests' undermining the elected govt? The puppets ARE in place.

Tue, 05/06/2014 - 13:07 | 4732387 Soul Glow
Soul Glow's picture

This just in - Gartman, currently blabbing on cnbc, says gold will crumble.  Time to buy!

Tue, 05/06/2014 - 12:22 | 4732191 fonestar
fonestar's picture

The Ukrainians and the mental rejects on this site are going to wish they had bought BTC instead.

Tue, 05/06/2014 - 12:35 | 4732241 Quus Ant
Quus Ant's picture

I don't own any gold or bitcoin.  One glorious day when you are all lords and masters please be so kindly as to look down with mercy on a poor, hapless childe.

Tue, 05/06/2014 - 15:39 | 4733104 adonisdemilo
adonisdemilo's picture


I we have to be mental rejects to buy BTC then it certainly answers the question "who the fuck is fonestar"?

Tue, 05/06/2014 - 11:26 | 4732003 The Longest Call
The Longest Call's picture

Damn good point nope-1004, that's exactly what's going down.  Putin says pay up with the shiny, and here's a story so you can paint the BS, and btw-  you won't be delivering by plane...

Sidenote- are Mellenials waking up?:

Tue, 05/06/2014 - 10:16 | 4731740 youngman
youngman's picture

I bet they get a nice framed picture of some gold held in a vault somewhere for the piece of paper they get..politicians need something to show the sheeple...

Tue, 05/06/2014 - 13:21 | 4732441 Manthong
Manthong's picture

Or maybe a tap dance in front of a green screen with 20 year old vault chroma-key.

Tue, 05/06/2014 - 12:57 | 4732335 Papasmurf
Papasmurf's picture

The transaction will suppress the price of physical, so win-win for the global banksters.

Tue, 05/06/2014 - 10:03 | 4731671 Manthong
Manthong's picture

Beat me to it.  :-)

It is all likely balance sheet bullshit.

Paper gold or at best tungsten facsimiles.



Tue, 05/06/2014 - 10:03 | 4731674 Pladizow
Pladizow's picture


Tue, 05/06/2014 - 10:06 | 4731689 BigJim
BigJim's picture

 Over $1 billion from the first portion of the loan will go into the gold and currency reserves of Ukraine...

Gold... AND currency reserves, people. Most of that $1B will probably be USD and Yen.

And if a western-oriented central bank buys gold that's bad news, because they'll lease it out to the bullion banks who will use it to short each and every ounce 20 times, at least.


Tue, 05/06/2014 - 11:30 | 4732015 Flux
Flux's picture

 Over $1 billion from the first portion of the loan will go into the gold and currency reserves of Ukraine...


Not Apple?

Tue, 05/06/2014 - 10:30 | 4731703 Drifter
Drifter's picture

Paper, phys, whatever, hope it keeps 'em warm this winter with no gas.

I'm confident oligarchs will stay warm, lots of hooker body warmth at night and blow during the day.

People, not so much.

Tue, 05/06/2014 - 10:38 | 4731832 toady
toady's picture

Yep. It'll probably be paper against the actual physical they shipped out! 

Tue, 05/06/2014 - 09:17 | 4731482 Tabarnaque
Tabarnaque's picture

The question is how long will this freshly purchased gold be stored in Kiev? Or will it ever be at all?

First, the IMF loan has been made in SDR so that Kiev won't get a free meal when the USD drops in value. Second, they are using SDR to buy gold, which is likely to end up being stored in London's vaults and we all know what happens to gold stored in London. So all the countries of the world are funding the IMF so that the Western Power That Be can lease and sell the freshly bought Ukrainian gold? Or are they smart enough  to use gold to hedge their SDR loan?

Can someone else shed some more light here? This story is getting crazier every day.

Tue, 05/06/2014 - 09:23 | 4731514 Confused
Confused's picture

Question: If the IMF can just give out loans, and the Fed can just print money, and there is a lack of gold to meet repatriation needs, why wouldn't the players just secretly print paper money to purchase gold directly, 'off the record.' 


Not saying they are not using the Ukraine as a proxy, but it would seem this is overly complicated and brings with it substantial wildcards. 


Like Belgium, couldn't they find a silent partner through which they can accomplish this? 

Tue, 05/06/2014 - 13:21 | 4732444 Ski12568
Ski12568's picture

I believe China is filling that role and they are really good at keeping that a secret. They don't even have to print money, the Chinese could use dollars they don't want somehow

Tue, 05/06/2014 - 09:46 | 4731607 BanksterSlayer
BanksterSlayer's picture

If Ukraine wants to buy gold so badly, then why did they have all their bullion reserves airlifted out of the country back on March 07 at the start of the Nazi coup? GATA still keeps that news story on file, however the Russian-language news site from whence it originated is mysteriously down right now, ahem!


* * *

From Iskra News
Zaporozhye, Ukraine
Friday, March 7, 2014

At 2 a.m. this morning an unmarked transport plane was on the runway at Borispol Airport. According to airport staff, before the plane came to the airport, four trucks and two Volkswagen minibuses arrived, all the truck license plates missing.

Fifteen people in black uniforms, masks, and body armor stepped out, some armed with machine guns. They loaded the plane with more than 40 heavy boxes.

After that a mysterious men arrived and entered the plane.

All loading was done in a hurry.

The plane took off on an emergency basis.

Those who saw this mysterious special operation immediately notified the airport officials, who told the callers not to meddle in other people's affairs.

Later a returned call from a senior official of the former Ministry of Income and Fees reported that tonight, on the orders of one of the new leaders of Ukraine, the United States had taken custody of all the gold reserves in Ukraine.

Tue, 05/06/2014 - 10:44 | 4731849 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You are not asking the right questions.

Who are the Ukrainians buying the gold from with that IMF funny money?

Next question once you know that, are they buying physical or paper shares?

Tue, 05/06/2014 - 12:37 | 4732253 Eternal Complainer
Eternal Complainer's picture

March 7
Then the very next day march 8 Malaysian 370 goes missing.

All these dots? WTHIGO?
(What the hell is going on?)

Tue, 05/06/2014 - 10:18 | 4731746 chapaev's ghost
chapaev's ghost's picture

Kiev Central Banker: Hi there, I would like a loan.

IMF: So, tell us, what are the chances we'll get repaid?

KCB: Well, we're in the middle of a civil war, with half of our nation breaking away and backed by a superpower. Our government is a corrupt putsch, and even among the members of the putsch there are serious political and ideological divisions. There is a good chance the two part civil war could disintegrate into a Lebanon-style free for all. Then there is the fact that our nation is bankrupt, our civil institutions are infected with systemic corruption, we have an on-going nuclear crisis, and we owe Russia lots of money for gas. So, based on those facts, I'd say there is a very small chance you'll be repaid at all.

IMF: So tell us a little it about yourself: Personally, where is your domicile?

KCB: I have dual citizenship.

IMF: How interesting! So do we! Tell you what. If you buy a billion dollars worth of gold with the money we lend you, and then kick back that gold to us, we'll lend you the rest. After all, the IMF uses other people's money, and those people don't have dual citizenship. Deal?

KCB. Deal

Tue, 05/06/2014 - 09:44 | 4731596 DIgnified
DIgnified's picture

Is gold the new theory?  Thought Trident Group did NBC escorting. 


That doesnt seem worth it, does it?  I guess every bit counts, but we owe so much.  Its like owing thousands of dollars and stealing from the take-a-penny thing at gas stations. 

Tue, 05/06/2014 - 09:35 | 4731555 Dr. Engali
Dr. Engali's picture

I don't believe for an instant that there was 2 tons of gold on that plane. That's a mere $93 million dollars. That's not worth the effort of disappearing  a 300 million dollar plane along with it's crew and passengers. There is more to the plane story than two tons of gold.

Tue, 05/06/2014 - 09:38 | 4731569 Confused
Confused's picture

$93 million at market price. 


I'm not disagreeing. I'm just saying we don't (nor will we ever) have enough info to know what is really up. 

Tue, 05/06/2014 - 10:07 | 4731693 Dr. Engali
Dr. Engali's picture

Whoever disappeared this plane had tremendous resources at their disposal. The acquisition of gold, IMHO was not their objective.

Tue, 05/06/2014 - 10:20 | 4731752 Confused
Confused's picture

Agreed. And I can't pretend to know anything more. 


So to your point, either something very valuable was on the plane. 


Or, there are some monetary plans behind the scenes which might revalue gold. (admittedly less likely) Especially when this quantity can be purchased. 


Tue, 05/06/2014 - 12:48 | 4732233 Badabing
Badabing's picture

Let’s "pretend" that physical gold is fractionally reserved at 100 to 1 with paper contracts.

How much would it be worth to a CB then?

Tue, 05/06/2014 - 10:47 | 4731860 Kirk2NCC1701
Kirk2NCC1701's picture

$1B buys 25 tons of gold.  Isn't that what ZH reported when MH370 first went missing?

Tue, 05/06/2014 - 09:03 | 4731418 knukles
knukles's picture

OK, so the West loans money to "The" Ukraine to pay overdue gas bills from Russia or else "The" Ukraine freezes to death in the dark this winter, along with Western Europe. 

But instead Ukraine buys gold.

Having already shipped the country's reserves to the NYFRB for "safekeeping" I wonder where this gold will be sent?
NYFRB, which in turn will be sent back to Germany.....
In fact, why do I even say, "Sent"
Said gold will just be delivered to NYFRB...

Oh, fuck delivery, it will just be moved from one pile to another.
One imaginary pile to another
In fact there will be no gold involved
The money will just make its way to a bankers pocket.

Mystery solved.

Jump you fuckers

How do you misspell rehypothecation, Bitchez?

Tue, 05/06/2014 - 09:09 | 4731454 negative rates
negative rates's picture

Maybe they want gas payment in gold. On to the next mystery.

Tue, 05/06/2014 - 09:16 | 4731480 TahoeBilly2012
TahoeBilly2012's picture

"Borrow" money to "buy" gold and currencies? Loan me a few Billion, I want to "stabilize" my finances....what a joke.

Tue, 05/06/2014 - 09:20 | 4731497 Xibalba
Xibalba's picture

open a 18month 0%APR and go to town on Apmex.....same thing basically.

Tue, 05/06/2014 - 09:51 | 4731623 old naughty
old naughty's picture

"Having already shipped the country's reserves to the NYFRB for "safekeeping"..."

Safekeeping. Why NYFRB? What about Fort Knox? Do you have a problem with the South?

Tue, 05/06/2014 - 10:38 | 4731833 Tabarnaque
Tabarnaque's picture

Knukles probably has it. There will be no real gold ever involved in the whole transaction. It will all be paper.

Yet, the whole deal is fishy. It is a recognition by the power that be that gold helps stabilize the financial situation of a country (they said they will buy it for stability, right?). This is a far stretch from Bernanke saying that gold is not money and nobody realy understand how it is priced.

The fact that the IMF loan was made in SDR also means something.

Tue, 05/06/2014 - 12:51 | 4732309 fallout11
fallout11's picture

Because there hasn't been any gold in Fort Knox in ~20 years.

Tue, 05/06/2014 - 12:58 | 4732339 quasimodo
quasimodo's picture

Ft Knox? 

What is this fortress you speak of? Sounds quite safe and secure



Tue, 05/06/2014 - 13:43 | 4732547 ebear
ebear's picture

One does not simply walk into Fort Knox.

Tue, 05/06/2014 - 09:41 | 4731581 eddiebe
eddiebe's picture

And the gold they will buy will be in paper form, I'm sure.

Tue, 05/06/2014 - 09:20 | 4731496 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Should we expect anything more at this point? Bankers are a protected class. Jesus Christ with diplomatic immunity would be questioned more.

Tue, 05/06/2014 - 12:33 | 4732242 sampo
sampo's picture



The government plants " got access" to the western system buy giving their phyzz to the confiscatory kleptocrats, and now they can buy their "gold" back as bits leveraged to infinity, with the enslaving loans they got.


Yeah, babe! As good as gold.


Rinse and Repeat.

Until it's all sent to China.


And Then?



Tue, 05/06/2014 - 09:45 | 4731598 HardAssets
HardAssets's picture

Undoubtedly, some Uks in the government were well compensated to facilitate the 'transfer' of the gold westward.

This is a rather familiar theme in these various conflicts, isnt it ?  Grab the gold and then put the population on a debt plantation.

Tue, 05/06/2014 - 10:57 | 4731866 CPL
CPL's picture

I hope so, the math behind it is crooked if they shipped their 35 tonnes of gold somewhere in trade for cash.

35 tonnes of gold, or 70000 pounds, or 1120000 ounces.

Using 1300 as a price baseline


versus what's being given by the IMF


One of three things happened/going to happen:

  • The IMF and their team of monkey's can't add for shit.
  • Ukraine just got robbed.
  • PM market is just about to get fucked with again.

This should be a cue for Russia to jump energy/commodity prices 300% to take it back/force an even export trade so it doesn't kneecap your banking industry by back dooring PM/commodity prices. 

China needs to push up euro export tariffs to match Russia on commodities and hard assets.  Don't need to drop a bomb to hurt a bad actor, just need to empty their wallet until it's obvious to everyone that they've got a localized problem running the show.  Let them fall on their faces with real pricing. ( re-export their inflation back to them)

So everyone move a head of the lame IMF hedge to take it out at the knees and kick it in the head when their bond issuance drops.  If not, PM's will take a shit along with all exports.



Tue, 05/06/2014 - 11:29 | 4732008 CPL
Tue, 05/06/2014 - 11:32 | 4732021 ZH Snob
ZH Snob's picture

if you give me a ton of gold today I will gladly pay you Tuesday


this crap makes 3 card monty look like a legitiment challenge.

it is obvious that the IMF is playing international enabler for the BIS to keep the ponzi scheme of central banking alive.  watch for their empty promises to revive the world economy (once it crashes) with SDRs which of course will be, in essence, more fiat currency.

Tue, 05/06/2014 - 08:51 | 4731383 MFL8240
MFL8240's picture

Putting Gold in the USA, you can kiss it goodbye !

Tue, 05/06/2014 - 09:01 | 4731425 Long-John-Silver
Long-John-Silver's picture

All this Gold buying is sure to drive down the price of Gold. /sarc

Tue, 05/06/2014 - 09:10 | 4731460 negative rates
negative rates's picture

Gold is fer spendin, not saving.

Tue, 05/06/2014 - 10:06 | 4731691 1stepcloser
1stepcloser's picture

Gold is for saving ur ass...

Tue, 05/06/2014 - 08:54 | 4731386 LawsofPhysics
LawsofPhysics's picture

Oil, nat gas, and other commodities.

"Wars" require such things...


As far as the Fed goes, use their own propaganda against them.  If everyone on the planet starts simply repeating "audit the Federal Reserve" in polite conversation, it might actually happen.  Will it confirm what most of us know already (by following the bullion banks), who knows, but it certainly would be fun to find out...

Tue, 05/06/2014 - 08:56 | 4731399 Winston Churchill
Winston Churchill's picture

On the plus side, I'm sure there are many rare spiders to
be found in Ft.Knox.

Tue, 05/06/2014 - 08:58 | 4731417 LawsofPhysics
LawsofPhysics's picture

Indeed.  As a hobby beekeeper I am thinking that you could turn all that space into a massive underground golden honeycomb.

Should get at least 100 lbs this year, definitely a good mead in my future.

Tue, 05/06/2014 - 09:31 | 4731536 pods
pods's picture

Friends in college made a mead with champagne yeast (more potent?). 

Didn't have to have more than one pint of those.  Couldn't tell the difference from my liver hurting or my pancreas.

Good stuff though.


Tue, 05/06/2014 - 09:52 | 4731629 HardAssets
HardAssets's picture

@LawofPhysics - as a beekeeper, have you noticed a decline in the number of honey bees where you are ?

We're in prime farm country. The bee activity is related to the types of crops planted in adjacent fields. I don't have a real sense of how the bee population is doing here. (But then again, I'm not a beekeeper and knowledgable on the subject.)

Tue, 05/06/2014 - 10:24 | 4731776 Overfed
Overfed's picture

I don't have hives right now, but I was definitely looking at what the bees were doing this spring.  It looks like we have a good local population here in my neck of FEMA region X. All of my fruit trees got some good pollination and are showing a lot of small fruit. Gonna be a bumper crop of apples and Asian pears this year.

Tue, 05/06/2014 - 10:35 | 4731817 LawsofPhysics
LawsofPhysics's picture

Yes, the mite problem has always plagued beekeeping and it has been particularly bad this year.  Seeing about 50% collapse if not complete loss.

But, like anything. Just go in the hives, treat for mites, check on productive queens, feed them back to health, keep pesticides away from your boxes, do your due diligence etc.

No decent return on anything happens "all by  itself".

Tue, 05/06/2014 - 09:12 | 4731465 negative rates
negative rates's picture

Tried that once before, once the failed Fed experiment dies, then you will know. You can still have fun inbetween.

Tue, 05/06/2014 - 08:52 | 4731387 pods
pods's picture

Steal their gold, then loan them money so they can buy it back?

Positively devious.


Tue, 05/06/2014 - 08:55 | 4731398 negative rates
negative rates's picture

Now your on Santa's naughty list and have less than 600 days to live, enjoy each day as if it were your last.

Tue, 05/06/2014 - 08:57 | 4731407 LawsofPhysics
LawsofPhysics's picture

All the while collecting a significant fee for doing all that work.

How fucking stupid is this?  Execute the useless paper-pushers already.

Tue, 05/06/2014 - 08:57 | 4731408 BadDog
BadDog's picture

Just when you think you've seen it all, along comes this.  Words like hubris, arrogrance and greed simply do not suffice.  A new vocabulary has to be invented to describe the people now running the west.

Tue, 05/06/2014 - 09:25 | 4731522 Dugald
Dugald's picture


You could start with Fuckwits

Tue, 05/06/2014 - 09:06 | 4731438 Mine Is Bigger
Mine Is Bigger's picture

That's what I thought, too.  It may even be worse though.  The "bought back" gold may be stored at the NY Fed.  If the rumor of Ukraine's gold going to NY is true, it would effectively mean Ukraine giving its gold for free and then paying for it with a loan that requires interest payments!  How sick is that?

Tue, 05/06/2014 - 09:16 | 4731485 negative rates
negative rates's picture

It's not any sicker than company's borrowing money at low rates rather than paying taxes on money they already have. Just make sure that no money is being borrowed on colladerized funds. Can you say mothers day bubble. 

Tue, 05/06/2014 - 09:53 | 4731637 Againstthelie
Againstthelie's picture

Sick? It's Demoncracy the sheeple love.

Tue, 05/06/2014 - 09:59 | 4731647 HardAssets
HardAssets's picture

Steal their gold.

Hold it as 'collateral' to loan them fiat paper No-things.

Charge interest on the No-things. Buy up their real assets. Enslave the population with your made up 'debt'. Politicians are whores and will sell out their country for a pittance.

Never give them the gold back . . . ever.



"Money is gold, and nothing else." - JP Morgan testimony before Congress in 1912. Right before he died and went to Hell, as he so richly deserved.

Tue, 05/06/2014 - 08:52 | 4731388 pan
pan's picture

Gold bitchez!

Tue, 05/06/2014 - 09:21 | 4731499 zipit
zipit's picture

Bitcoin, bitchez!

Tue, 05/06/2014 - 09:40 | 4731575 superflex
superflex's picture

Momma always said you cant fix stupid.

Tue, 05/06/2014 - 08:53 | 4731390 Wahooo
Wahooo's picture

So that's how we square it with Germany. This is all about US taxpayers via the IMF buying gold via Ukraine and giving it to Germany via the Fed's vaults. Well, that's certainly worth dying for.

Tue, 05/06/2014 - 08:53 | 4731393 Bahamas
Bahamas's picture

Run to quality.

Tue, 05/06/2014 - 08:54 | 4731395 Bahamas
Bahamas's picture

So little gold and so much fiat

Tue, 05/06/2014 - 08:56 | 4731404 negative rates
negative rates's picture

So much money and so little time to spend it.

Tue, 05/06/2014 - 09:00 | 4731424 knukles
knukles's picture

One trip to the 5 and Dime wil do it

Tue, 05/06/2014 - 08:54 | 4731396 Dr. Engali
Dr. Engali's picture

Seems like a lot of trouble for such a barbaric relic.

Tue, 05/06/2014 - 08:56 | 4731406 Grande Tetons
Grande Tetons's picture

I was thinking the exact same thing. With all the lies and bullshit I am not sure if this is meaningful or meaningless. 

Tue, 05/06/2014 - 08:58 | 4731415 fonzannoon
fonzannoon's picture

see below and put me down for absurd.

Tue, 05/06/2014 - 08:57 | 4731411 negative rates
negative rates's picture

No trouble at all, just takes time to dig it up.

Tue, 05/06/2014 - 08:56 | 4731401 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Let me guess, Ukraine won't have physical possession.

Tue, 05/06/2014 - 08:56 | 4731403 BRZgixxer
BRZgixxer's picture

Not long ago we heard news about a misterious plane landing in the middle of the night and supposedly airlifting all the 30+ tons of Ucrainian gold reserves away to the west.... SO? Can make no sense out of this...

Tue, 05/06/2014 - 09:19 | 4731492 SheepDog-One
SheepDog-One's picture

Germany wants their gold back....a little shell game goes on here and voila, Germany got their gold back from the Ukrainians, then the Ukraine gets it's IMF aid, from your and my pocket.


Tue, 05/06/2014 - 08:56 | 4731405 RacerX
Tue, 05/06/2014 - 08:57 | 4731409 fonzannoon
fonzannoon's picture

The U.S is giving Kiev money to buy a billon dollars of gold, which the U.S will then hold for safe keeping and give to Germany....Because if the U.S was so concerned about giving gold back to Germany they could not print up a billion dollars and buy gold and just give it to them? They need to go through all these steps? 

More importantly, because that sounds ridiculous, is who is selling a billion dollars worth of gold. I wonder if teh seller of the gold throws in the malaysian airplane as a little thank you and even makes it easier for shipping and handling. 

Tue, 05/06/2014 - 09:00 | 4731420 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Guess who is selling gold they don't have and offering to keep it "safe" far from the homeland.

Tue, 05/06/2014 - 09:21 | 4731507 Lionhearted
Lionhearted's picture

It's the old."If you don't have physical possesion you don't have SQUAT!" But the IMF is totally OK with this whole transaction. It's only a paper loss.

Tue, 05/06/2014 - 09:22 | 4731502 sessinpo
sessinpo's picture

fonzannoon   Because if the U.S was so concerned about giving gold back to Germany they could not print up a billion dollars and buy gold and just give it to them? They need to go through all these steps?


Since the US runs an annual deficit, a loan is essentually the same as printing it - money created out of air. And if, the US is going to store the gold, there is really no transfer of anything physical. It's all just a few ledger marks.

Tue, 05/06/2014 - 09:27 | 4731529 Fuh Querada
Fuh Querada's picture

According to James G Ricktards on his twitter feed, the German Bundesbank is not interested in repatriating the gold, they want it to stay in the US for manipulation purposes.

Thus is presumably another one of Ricktards' half-truths because it begs the question of whther the gold still exists and is has not been shipped to China after recasting in 1 kg bars.

The origin of the calls for German gold repatriation was in fact a report by the "Bundesrechnungshof" (Federal Accounting office) at the end of 2011 that ciriticized the lack of audits of Bundesbank gold.This was taken up by some parlamentarians. The Bundesbank itself is probably just as much involved inthe manipulation scheme as the Fed - either by design or extraneous pressure.

Tue, 05/06/2014 - 08:59 | 4731421 JenkinsLane
JenkinsLane's picture

My guess is they'll buy one half ounce Krugerrand (any year) and the rest will go into Dollars and Euros.

Tue, 05/06/2014 - 09:01 | 4731426 Bastiat
Bastiat's picture

Meanwhile, USDX under 79.10. 

Tue, 05/06/2014 - 09:02 | 4731429 intric8
intric8's picture

This is a red herring. Dont get a headache over it. Much more important bullshit is on the way.

Tue, 05/06/2014 - 09:03 | 4731432 SilverIsMoney
SilverIsMoney's picture

USD Dying...

What happened to the safe haven?! Closing in on sub 79!

Tue, 05/06/2014 - 09:11 | 4731462 SheepDog-One
SheepDog-One's picture

I'm sure it's all somehow bullish for U.S. American stawks though, and that's all that really matters now.

Tue, 05/06/2014 - 09:04 | 4731437 RealityCheque
RealityCheque's picture

But nobody else buy it, ok. OK??????!!!!!!!!

Tue, 05/06/2014 - 09:04 | 4731439 Seasmoke
Seasmoke's picture

As they should. Especially at these half off prices !!

Tue, 05/06/2014 - 09:06 | 4731442 Infinite QE
Infinite QE's picture

But now Ukraine is under zionist ownership so the gold belongs to them anyway.

Tue, 05/06/2014 - 09:08 | 4731450 Mine Is Bigger
Mine Is Bigger's picture

Dumb Kiev central bankers!  Just print!  Why do you need the freaking loan from the IMF?  Oh, I see.  You need money to deposit in your Swiss bank accounts.

Tue, 05/06/2014 - 09:18 | 4731489 Snidley Whipsnae
Snidley Whipsnae's picture

The new leaders of Ukraine don't want to steal their own fiat cause they know it's worthless.

So they buy gold to steal.

This isn't rocket science.

Tue, 05/06/2014 - 09:24 | 4731520 sessinpo
sessinpo's picture

 Snidley Whipsnae       The new leaders of Ukraine don't want to steal their own fiat cause they know it's worthless.

So they buy gold to steal.

This isn't rocket science.


The new leaders of Ukraine aren't going to get shit. They are just following orders from outside hoping to maintain that outside support.

Tue, 05/06/2014 - 11:38 | 4732036 Snidley Whipsnae
Snidley Whipsnae's picture

"The new leaders of Ukraine aren't going to get shit. They are just following orders from outside hoping to maintain that outside support."

Oh, you mean the 'outside support' from Vicky Nuland? Or the outside support from visiting CIA director? Or the outside support from the IMF? Or more contract snipers? If you believe that they are going to get unlimited dollars you are delusional. They get US state dept clowns whispering in their ear of unlimited support and in the end they get almost zero support that the Georgian gov got when it bucked Russia.

They got $5billion or so the rumor goes but how much more support will they get? No one knows, including you.

The first group left alone in the room containing $1billion in gold will be the group that steals it. The unelected government backing DCs move in Ukraine are going to need traveling money if this scheme blows up in their faces.

Tue, 05/06/2014 - 09:13 | 4731471 Oh regional Indian
Oh regional Indian's picture

Three Card Monte with global gold reserves......

Tue, 05/06/2014 - 09:15 | 4731478 i_call_you_my_base
i_call_you_my_base's picture

Fool retard.

Tue, 05/06/2014 - 09:20 | 4731493 zipit
zipit's picture


Tue, 05/06/2014 - 09:21 | 4731503 lakecity55
lakecity55's picture

Gold, bitchez.

Tue, 05/06/2014 - 09:19 | 4731494 RaceToTheBottom
RaceToTheBottom's picture

If they bought US gold, they got the paper variety.  So basically just trading one form of fictional money for another.  Debased Accounting entries on a fictional piece of paper.

Tue, 05/06/2014 - 09:19 | 4731495 lakecity55
lakecity55's picture

......and all Ron Paul found as he finally gained entrance to Ft Knox was a battered, empty wooden pallet. Spray-painted on the wood was "Goldfinger."

Tue, 05/06/2014 - 09:20 | 4731498 esum
esum's picture

if the ussa is so interested in gold why not iraqi oil too.... ussa is stupid and lets its sons die and leave blood in sand for nothing... 

Tue, 05/06/2014 - 09:21 | 4731501 Fuh Querada
Fuh Querada's picture

It's all just a fucking charade of bookkeeping entries.

Tue, 05/06/2014 - 09:21 | 4731508 Lord Flashheart
Lord Flashheart's picture

Preparing for the moment Russia (stops accepting dollars and) starts demanding gold for their gas deliveries?

Tue, 05/06/2014 - 09:26 | 4731527 Lionhearted
Lionhearted's picture

I wonder why they would want a real commodity over green paper?

Tue, 05/06/2014 - 09:24 | 4731516 BullyBearish
BullyBearish's picture

All these deaths for a barbarous relic

Tue, 05/06/2014 - 09:33 | 4731547 DYS
DYS's picture


Tue, 05/06/2014 - 09:47 | 4731571 TrulyStupid
TrulyStupid's picture

Ukraine should have converted all their outstanding debt from Euros (or USD) to its native hryvnia and proceeded to devalue its currency to a gold fix... thereby shafting its creditors.

Instead all its gold reserves are now off site in the west and the local treasury is full of USD... thereby shafting Ukraine.


End result ... the hryvnia held by the locals is shortly going to experience a Zimbabwe moment, but foreign creditors (except Russia) are secured by the USD.

Tue, 05/06/2014 - 13:16 | 4731616 Jorgen
Jorgen's picture

In the meanwhile, in Russia:

Russian State Duma proposes to ban state reserves in foreign currency  (in Russian, use Google Translate)

So, just maybe, the gold uptick is not caused by Ukraine to store her gold in Fed's vault but rather - Russia to do the unthinkable...

Tue, 05/06/2014 - 09:41 | 4731577 shovelhead
shovelhead's picture


Signs IMF check. Cashes and writes one out for 1 billion for gold.

"Thank you Sir, we will add that gold to your allocated account. Would you like to pay now for handling and storage fees on this account or would you rather we add that cost to your first installment repayment ?"

"Oh no, Sir. You should be to make that first payment with ease after we eliminate 80% of your public sector services and pensions."

"Thank you for choosing the IMF for your financial needs...Have a great day Sir."

Tue, 05/06/2014 - 09:41 | 4731579 Kina
Kina's picture

So the Ukraine is buying the US another billion in gold.


Tue, 05/06/2014 - 09:42 | 4731583 Canucklehead
Canucklehead's picture

I believe Putin is doing what he said he'd do from the outset. I suspect he will wait until after the May 25th election to decide his next course of action. What I find interesting is the Bloomberg article below:
In the article, it states Putin has been wanting the Russian companies to bring their money home:
...Putin has been urging his country’s businessmen for more than a year to bring their capital back home.

“Russian companies have to be registered here, in their home country, and have a transparent ownership structure,” Putin said at a March 20 business conference in Moscow...

Now the move into the Crimea was all about Russian people, Russian land. In the scheme of things, it doesn't make sense. There are internet stories that the turnout for the Crimean vote was 30%. Of that, only 50% voted to leave Ukraine and join Russia.

Is this Ukraine issue all about Putin flushing the ex-pat Russian oligarch money back to Russia? Can it be that simple?

Tue, 05/06/2014 - 09:52 | 4731632 A_Nejad
A_Nejad's picture

Why wait till 25th election while 11th election is right around the corner?

Tue, 05/06/2014 - 10:13 | 4731720 Fix-ItSilly
Fix-ItSilly's picture

Yes it can be that simple.  And probably with the West's participation.  After all, the West wants to avoid another "Cyprus". 

Tue, 05/06/2014 - 16:56 | 4733527 supermaxedout
supermaxedout's picture

Hello DDR Ampelmaennchen.

Tue, 05/06/2014 - 09:44 | 4731591 Marley
Marley's picture

Free web hosting servers so illegitamite anarchial websites can bounce their location?

Tue, 05/06/2014 - 09:47 | 4731608 BlackVoid
BlackVoid's picture

Guess where it will be stored. NY. Until it leaves for China, leaving behind scraps of paper.

Tue, 05/06/2014 - 10:04 | 4731678 Seize Mars
Seize Mars's picture

God where do we start here.

What a fucking Shit Show.

Borrow your own gold back from lord Rothschild who stole it.

Tue, 05/06/2014 - 10:05 | 4731682 Irishcyclist
Irishcyclist's picture

Does this explain, in part, the change in the price of gold?

(sorry if this is a stupid question but given where we are with fiat currency, skyrocketting debt, bankrupt sovs - i think it is a reasonable question to ask).



Tue, 05/06/2014 - 10:08 | 4731697 The Abstraction...
The Abstraction of Justice's picture

The idiots, they should be buying silver and platinum.

Tue, 05/06/2014 - 10:08 | 4731698 Atlas Crapped
Atlas Crapped's picture

A smart move. In the future, looking back, it will have been a source of great astonishment that the ultimate ant-debt could actually be bought with pure debt. 

Tue, 05/06/2014 - 10:08 | 4731700 Fix-ItSilly
Fix-ItSilly's picture

Maybe Ukraine will buy back their re-hypothecated gold?  Its a also a given that currency reserves will be added - the loan will be in Western currencies and reserved until  spent.

What happened to the IMF's "no money for you" shout out if Ukraine doesn't get its East under control?  That red line was crossed.

Tue, 05/06/2014 - 10:09 | 4731704 Obama_4_Dictator
Obama_4_Dictator's picture


I wanna know where the gold at, gimmie the gold."

Tue, 05/06/2014 - 10:18 | 4731747 NoWayJose
NoWayJose's picture

Of course, they are getting fiat money in the loan printed out of no-where, and are using it to buy paper gold printed out of no-where...

Tue, 05/06/2014 - 10:18 | 4731748 youngman
youngman's picture

Sounds like it is just a commission for the loan....a fee so to speak...hedge funds charge it so why cant a country take one....

Tue, 05/06/2014 - 10:18 | 4731750 redeemed
redeemed's picture

Dear friends, "Gold and Currency reserves" is just a name for an "International Reserves" translated from Ukrainian. 

Therefore, to increase "Gold and Currency reserves" doesn't mean "to buy gold". In fact, all gold Ukrainian National Bank has amounts only to USD 1.8 billion (which is 11.5% of current international reserves) and it is almost unchanged since 2012.

Tue, 05/06/2014 - 10:21 | 4731764 Fix It Again Timmy
Fix It Again Timmy's picture

Storing your gold with the NY Fed is like appointing a registered sex offender to look after your hot teenage daughter....

Tue, 05/06/2014 - 16:54 | 4733511 supermaxedout
supermaxedout's picture

Or like a Bloodhound appointing to look after a bloody T-Bone steak till its matured.

Tue, 05/06/2014 - 10:27 | 4731781 tony wilson
tony wilson's picture

the strategems of der rothschilds no no bounds if yer gets me drifts like.

gordons browns bottom sellin off all der british peoples gold to rothschild at low low collapse prices.


navy seals mi6 and mossad stealin ukrainian gold then getting a bank loan from the same guys to buy more gold that will never ever get near kiev.

is just the start of der sodomy.

this latest story arc is good fellas or sopranos territory not italian all jew

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