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Deutsche Bank's Modest Proposal To Central Banks: "Purchase The Gold Held By Private Households"
From the bank that a few days ago informed us that "People Are Talking About Helicopter Money And Debt Cancellation Being The End Game", comes the logical next step. Here it is, without commentary and the key section highlighted:
From Deutsche bank Behavioral Finance: Daily Metals Outlook
Although gold market operators are currently pre-occupied with the prospect of the SNB finding itself obliged by referendum to buy large quantities of bullion, another central bank raised the same possibility yesterday: the ECB. As odd as it sounds, given the contentious internal debate this year over asset purchases in general, ECB board member, Yves Mersch, reminded journalists that the Bank could in theory buy any asset within a QE program. This could mean government debt, equities, ETFs, or even gold. Indeed, within an effective asset purchase program it matters not so much what the asset is, than who the seller is. Given that the eurozone banking system still appears to be a bottleneck in the monetary transmission mechanism, there might be some wisdom in bypassing it. Banks do not hold gold. However, this ‘theoretical’ possibility would quickly run into practical constraints, not least the volume limitations and the problem of having to pick winners and losers.
However, the idea of gold purchases has merit because of the possible sellers. Much gold is held in private households, especially in countries like Germany. In some cases these are unwanted remnants of crisis-driven investments five years ago. A program that targeted these holdings would liberate dormant liquidity, some of which might even flow into consumption.
In other words, all the world's central banks would need to do to "liberate dormant liquidity" , held, as DB suggests, by private households in various "unwanted" troves of physical gold, and in the process also build up their gold holdings, would be to make said gold unattractive to hold.
And if that fails, well, FDR already showed the world how to deal with an intransingent public which does not want to part with its gold in Executive Order 6102, something which the Dutch Central Bank which also made the news recently when it secretly repatriated 122 tons of gold from the NY Fed, already did years ago when it advised pension funds to sell their gold: confiscation.
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Yeah they could do all that to stimulate consumption or...they could just let prices go down.
Of consumption growth will be Chinese household sector when gold goes parabolic and RMB appreciates... only Chinese households really can grow consumption. No G3 can until global economy comes into balance.
China is a bigger ponzi than the US.
Bigger ponzi means more fiat confetti. More fiat confetti means more Chinese confetti traded for gold.
The U.S. said F.U. to returning vasal Germany's gold so Germany is reduced to shaking down private citizens for any scraps and calling it a favor to them.
Central Banks, buying gold with their paper money. Soveriegn Nations buying gold. Soveriegn Nations trying to expatriate their gold unsuccessfully, Private citizens of the East buying gold. Who is selling real gold? Mines producing it at at a loss undner $1200?
The banksters are scaraping the bottom of the barrel . There will not be any miners selling gold for 1200 . So an alternative to supplies must be found .
The alternative is to fleece the pleb !
This is easy. The private central banks no longer believe in fiat currency and want to get their hands on as much gold as possilbe as fast as they can, so when it all goes bust, they'll still be filthy rich, maybe even richer, and all the fools who sold their gold for a few sheckles will be flat broke. So they've come up with an initial trial balloon, a "rope-a-dope" strategy. They'll ask us to sell it first, before they take it from us by force with another "executive" order. This is an old game - the one with the most gold wins. And I'm sure the private central bankers don't plan on losing.
Yup.
"They'll ask us to sell it first, before they take it from us by force with another "executive" order."
Is that like an executive order not to possess marijuana? LOL...
Why pay for it if they can just take it?
Lots of things will always have some real value. A 100lb anvil welded to the garage floor. A coper still,tools stuff like that. Things that have true value. Mother tools like spinning wheels,loom, saws, nails, hardware. Hand tools. Shit most of those you could leave in the open. What good are they to a person that has no skills? These days that stuff is a bargin. Does gold and silver work at yard sales?
Remember Gold is barter. Barter is barter.
For all you preppers I got one question. How are you and your kids going to make a living after. When it all settles back down?
"Barter is barter"
Correct. Barter is barter. Bartering happens..Always.
A bartering economy cannot scale up to significant population levels.
Ultimately though "it's all about the Barter".
True enough.
You really don't understand gold unless you see how many Indians and Chinese the world over covet it and will trade anything of value for it. Even in S America the native indians know what precious metals are and highly value them.
The problem is 'at what price'? If you bought gold a number of years ago, and are underwater, the current spot price will not attract many sellers. If you offer anything over spot then you create a new spot price just under your bid. If spot goes to $20,000 are you really selling into a dollar collapse?
My guess is that this is NOT really aimed at households - unless your household happens to have some London Good Delivery bars laying around.
Aimed at the PBOC. After years of chytty strategy in a world of competitive devaluation where we gave our printed money to Banksters to front run financial assets for trading profits, the G3 Central Banks have realized what I've said for years -- the way to establish v strategic control of the path of currency adjustment is to buy gold in your currency terms... Trust me, the Chinese ate not going to sell physical for more USD. That will force the Chinese to let the RMB appreciate and to send USD into the US, putting the capital to work before it loses value.
I'll sell some of mine for 10 times what it is worth otherwise go print some fiat bankster.
Bizarre.
GERMAN GOLD GRABBERS !!!
people, keep your gold and tell the banks to go fuck themselves to hell
Thieves, period.
Nail, meet head.
"Yeah unwanted. As if the crisis isn't ongoing. If the private households don't want their gold then why would the banks want it?"
Conversely, if banks want it, why should people who have it sell what they have?
Answer obvious, after how many thousands of years of bankster shenanigans.
The only gold a Deutsche Banker will see is from AK-47 bullet heading into his forehead. Make our day!
Translation: We have nearly sucked dry the GLD and Shanghai so we have to drive the paper price down one last time to trick the weak hands into selling us what little physical remains.
If printing numbers on paper costs the same, no matter what the number is, then let the government print some ten thousand dollar pieces of paper, or hundred thousand dollar pieces of paper, and then come offer to buy gold coins with them.
I'm sure some would trade a few coins for a few of these pieces of paper, since the face value of those pieces of paper would be useful in paying off debts, like mortgages, denominated in such numbers, or buying useful things that others may be willing to sell for such pieces of paper, such as real estate, farms, cars, etc.
So, maybe 5 gold coins for five $100,000 pieces of paper sounds fair and cost free to the Government...and would likely be of some interest to gold coin owners.
Otherwise, just take those pieces of paper and go wipe your government asses with them, right? That's their intrinsic value and, of course, there is no scarcity of paper..you don't have to mine it, correct?.. So highest and best use!
We should be so luck to actually get pieces of papaer.
Computer ledger entries are so much easier.
And to convince people to sell...make it workthless first.
It's actually a good idea to put some quick money in the economy,
There must be lots of households in Germany (and in Europe) that have a coin or two, probably left by an elderly relative. These people know nothing about Gold, to them it's just something of value that's hidden away. If they were serious about Gold then they'd at least have a small stack and that should be getting ever bigger.
So why not bid them for it, then they'll probably go out and buy a new TV etc. Could easily be done, via newspaper and TV adverts, send your Gold in and we'll give you a cheque.
However, there are often dark forces at play in the markets especially when it comes to Gold. Perhaps this is just another trick by the bankers to accumulate large amounts of physical Gold because perhaps they know something. Would make sense wouldn't it, screwing the people out of Gold at say $1200 an ounce when it's going to go A LOT higher. Classic bankster strategy that.
Whatever the case I'm a buyer every month of physical, high or low prices. Next purchase, 7 days...
there are all sorts of ways to sell AU in DE. shops on every corner so to say.
people are aware of the stray coin in the closet.
the DB can't get its gold from the ussa so they want to get it from the Volk.
sounds like panic time. lol
My modest proposal to the DB. F... o....
Was that modest enough?
DB FU
Shiny yellow lead is irrelevant in the current global fiat system unless + until the fiat governments collapse, and that is not happening for decades - these behemoths die very, very, slowly.
The FIAT system could collapse any moment . We won't have to wait 10 years .
When the coffers will be empty at the COMEX , won't be long at this rate , That's the end of the game . Shanghai will set the price of phisical gold and GAME OVER for the paper sellers !
I'm afraid it'll be replaced by another Fiat system. You know this time they will do it "right" or better or whatever you want. It's to tempting for all defrauders being able to manipulate everyone throug "legal money"...
What a bunch of bullshit. If it was so "unwanted" it would have been sold by now. The shit is getting so deep I am going to need taller waders.
The British Govt couldn't afford my remnants.. they're 1.5 trn in debt and counting , my "unwanted remnants" amount to 0.04% of british govt stated reserves. unlike the govt my holdings are verifiable and assayed.
Adamas, can you give me the location of your gold? I'll keep an eye on it for you. Can't be too careful these days.
This is what CBs are toying with...No competion for their fiat money if the can control the gold. Legitimise holdings thru certification of holders or at least it give them some more accurate #s of what gold is out there. Even if they control 10-20% of the physical gold trade, they can exert their influence in propping up their currencies.
On the other hand, this DB guy may talking out of turn. The 1% increasingly hold physicals and do not want disclosure. They will check these bureaucrats.
Whatever it may be, do not hand it over without kicking and screaming.
Excellent plan to rob the population . Buy now their gold before it shoots to the stars ! Same trick used in the USA decades ago !
"Purchase"? No, "steal". That is the proposal.
This article is now a couple of days old and it keeps coming up in my thoughts. This is such a bizarre way to phrase something and even on the surface it doesn't make sense. "Unwanted remnants......Might make its way consumption...." This is the most byzantine (sp) thing I ever heard of. And when you hear of things that don't make sense, it makes you think what are they really trying to do..... The weird thing is I am not a conspiracy theorist in the slightest, but this is way too strange... THERE IS SOMETHING GOING ON IN THE GOLD MARKET is the only thing I can come up with. This wreaks of desperation.