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Federal Reserve Confirms Biggest Foreign Gold Withdrawal In Over Ten Years
A week ago, when we reported that in a stunning move, the "Dutch Central Bank Secretly Withdrew 122 Tons Of Gold From The New York Fed", and when looking at the NY Fed's monthly reports of gold deposits by foreign entities, we observed that "we can see that while the 5 tons outflow in 2013 was most likely Germany, the recent surge in gold repatriation from Liberty 33 was the Netherlands. That said, only 77.5 tons of NY deposits gold has been officially repatriated through September, which means the October update, when it comes out, will be a doozy." Yesterday, the long anticipated October update of "earmarked gold" held on deposit at the NY Fed was released, and sure enough it did not disappoint. Declining in dollar value from $8.305 billion to $8.248 billion, this was the equivalent of 42 tonnes of gold being withdrawn, in the process reducing net gold located in the vault of JPMorgan the NY Fed to 6,076 tonnes. The 42 tonnes withdrawal was also the biggest single monthly redemption from the NY Fed since 2001.
So with the 119 tonnes of gold withdrawn so far in 2014, it is now abundantly clear that the "logistical complications" excuse used by Germany to halt its own gold repatriation program was nothing but a lie to cover up what, as Deutsche Bank explained earlier this month, was an escalation of "diplomatic difficulties" between the US and Germany, one in which Germany has folded, if only for now.
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While there's no doubt many, many Fed figures are fudged, there's truth mixed in with the lies.
Two reasons to believe the gold left and the Fed is reporting is: 1) The Fed isn't omnipotentent, and the Dutch know how much gold they received, for the Fed to not report how much left accurately would reveal the lies to other central banks and damage Fed credibility -- and this is tied intimately to 2) if people believe the Fed is reporting the gold transferred out to the Dutch correctly, then they're more likely to believe the total Fed holdings are being reported correctly as well.
Guess which one of those two numbers the Fed cares about more, that the Fed depends on people believing more, and which is most likely to be a fabrication -- and you'll have your answer of why the Dutch figures are being reporting accurately.
Merkel shouldn't tickle Putin's nuts too much. And Schauble should tickle Draghi's nuts moar.
seek: Always love reading your posts. You should write a book... or two... or three...
Cheers
I thought all of us believe figures from the most worthless source if they reinforce our position?
I do all the time.
sarc/
7s tend to be a big number with these fucknuts.
2015 is the collapse year. put your money on it. 2008 -> 2015 -> 2022
With all the fiat that has been printed worldwide in the last 6 years 8-9 billion is chump change. It would seem that one month of US, Japanese, and Chinese QE could buy all the gold in the world. People think I'm a nutjob when I talk of one CENTRAL BANK, but if I was wrong why wouldn't the Chinese buy all the gold with their paper? So the question is what would Gold and Silver be worth if the Gold standard was brought back? How would you price it, and in what paper currency? Would a move by a country to try and tie their fiat to gold bring on WWIII?
If the Chinese (or anyone else) started to buy gold in size in the open market they would only be able to get a very small amount before the price exploded and physical would not be available. It is better for them to accumulate slowly with little visibility so that they get the most for their money.
It is clear that physical gold is moving to the east. They don't want paper.
The 300 lb. fatass at the buffet table gets more shrimp if he is sneaky about it.
Once people get wind that he's gorging and hoarding it all, it's a run at the table.
I'm sure this is bullish for stocks....
My thoughts:
The US considers Germany doesn't treat Russia as the enemy, confirmed by the bugging of Merkels phone.
The US is using Germany's gold as leverage. It knows Russia has warned Germany (Dutch) etc that energy payments may be requested in full or part by way of LGD bullion.
The UK does what ever it is told by the US. It is isolated in €urope, it is considered the US mouthpiece by the rest of the world, it considers it has no choice.
The Save our Gold campaign will fail.
The price will have a serious spike down and continued follow through, its already built in but the squids target has to satisfied or at least close to $1050. The squid, JPM, BIS, Fed etc etc will all throw the kitchen sink in a last ditch attempt to kill gold and leave only the dollar standing.
It will fail. I suspect Russia will make its 'initial' move next week. China will as well but remain out of the spot light.
I believe December is the month where the currency end game becomes obvious, even to CNBC.
Gold will have a boot placed on its throat for as long as they can manage and then, start to explode upwards.
Western governments will look to confiscate 'investment' gold if Russia holds the line on insisting governments pay some or all of its energy requirements in bullion. It will be considered your public duty, like a war bond.
Russia and China (and friends) know exactly how much they have in their combined vaults and as a consequence know exactly how little Western custodial holders such as the Fed and BOE hold. Despite what they claim. This is why Putin suggested that custodial clients may want to check their custodial accounts. Subtle, but not in diplomatic language.
By yr end 2015 it is my opinion that gold will have a passed $3000, silver $45+. Silver is gold (coat tailed) leveraged but not at the initial stages of this playing out.
Most retail investors will miss out on the equity gains, very few will have physical gold which will command an increasing premium.
When Greece fell apart initial premiums in Athens were around 30%, I suspect it will be around 10%-15% on average over the next few years.
So either hold on and be sure to catch the rebound or sell with the crowd into the arms of the investment banks on Monday. DO NOT sell your physical.
I believe the initial equity decline will be short and sharp and then refuse to follow the spike down, that's the bottom.
Every point you make is totally and completely deriviative and unoriginal. You could have read these ideas on any macro, finance, or gold board over the past 15 years. During that tme, the price of gold exploded out of its multi-decade bear market, then stalled, then fell back into a bear market. But not because of any of these points. That bull market happened exlusively because of behavior and perceptions.
Gold is a 100% behaviorally influenced asset, and unlike some crucial commodities can theoreitcally go no bid or to an infinite bid.
Advice to everyone: stop making and reading arguments for gold prices going higher. Stop telling yourself you can reason your way to a gold thesis. It didn't work before, and it won't work now.
GG
Stop arguing and buy bitcoin. Last Price: $377
"Stop arguing and buy bitcoin. Last Price: $377"
No, stop arguing and buy booze. Lots of positive sides to booze; first, your local famer knows what it is, as opposed to bitcoins. Second, it keeps. Third, it has a good exchange value (during WW2, a Russian trucker swapped 3 gallons of gasoline for a bottle a vodka); four, people will accept it everywhere (save in muslim countries), five, it's warm and hearty, and will make you well-liked and welcome everywhere.
Buy booze.
My bad luck to be a recovering alcoholic. It is a good investment and SHTF commodity. Barring accidents or the kids getting into your stash it remains what it is year after year just like metals. You can't eat it but you can drink it.
TPTB may allow a yes vote then smash gold another $23 down afterwards. They've been "losing control" of gold manip for 3 years and counting. That may discourage any further referendums. Baaaaa
They are going to use WW2 against Germany for as long as it works.
yes, well, if you have not noticed, a lot of people involved in running the 'federal' reserve bank and the banks that own it, might be jewish? they like to milk it for every mile. or ounce.
and the germans MUST continue to feel guilty. good god, there is NO WAY we will ever let them forget.
42 tonnes withdrawn in september?? Anybody on ZH with even a small recollection of whats been previously stated at ZH (including all Tylers)??..
Is it just me or didnt roughly 42 tonnes of Gold disappear from the CB of Ukraine just a couple of months ago?? You think this is coincidental?? I don't, those FED vaults are so empty its hilarious..
The end is near
Arr, that explains why the US Government are trying to tax British subjects. I received a W-8BEN form from my bank with the demand to fill it in or be taxed by the US Government.
No tax without representation, that's what I say.
1776 karma?...
2015 default.
You're not Boris are you by any chance ?
http://www.washingtonpost.com/blogs/worldviews/wp/2014/11/29/london-mayors-unpaid-tax-bill-shows-why-some-people-dont-want-to-be-americans-anymore/
“The 42 tonnes withdrawal was also the biggest single monthly redemption from the NY Fed since 2001.”
Now, imagine what it will be as people learn the astronomical amount of liabilities collateralized by gold held by central banks and national treasuries on a global scale.
According to my research, we’re looking at… well, I need to explain a little before you would believe my numbers.
It used to be that all paper currency and bank reserves came into existence in exchange for gold: take a $20 gold coin into a bank and you got a piece of paper with $20 written on it: thus, paper was collateralized by gold.
That was many years ago. Today, all paper currency and bank reserves (and all “cash equivalents”) are directly or indirectly issued against government debt.
So, what are those “cash equivalents” (relative to the FR)? There are quite a number: 1) all paper currency; 2) all bank reserves; 3) Mortgage Backed Securities (MBS) owned by central banks; 4) all $ instruments owned by foreign institutions; 5) plus a large number of flimsy paper owned by the Federal Reserve.
All these “cash equivalents” are collateralized by a scrap of paper listed as “gold certificate” on the FR’s asset statement, which, in turn, is collateralized by a scrap of paper listed as “gold or gold swaps” on the Treasury’s asset statement. This last should tell you that there may not be any physical gold at Fort Knox.
So, now the problem is what happens when we establish an equality between the Treasury’s “gold or gold swaps” and all those “cash equivalents” listed 2 paragraphs up… $7,000… $70,000… infinity?
And, what happens as people learn of this equality?
Don’t hesitate to let your lawyers and accountants examine my findings.
Eat that, you cowardly Germans.
The stock markets are showing signs of impending problems also...
http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-w...
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
IMO Elliott wave attempts to reduce market analysis to red/black roulette, which can always be proven to work historically for arbitrary time t. But who knows the t before hand? Corzine... Jamie... Lloyd... all FRB riggers... Bernie, and even he fucked it up by getting greedy and being stupid. You need something better than animal spirits snake oil to sell your hypothesis here.
Perhaps if you were an aide to the wealthiest on paper POS senators and congressmoles, your views would be relevant.
"We stole some folks' gold."
Queenie of the Illuminazis gots to be havin her gold.
Clesthenes,
I would like to agree with your analysis, but I think it has a fatal flaw. You can't value government treasuries all the way to zero unless and until government tax receipts stop entirely. Until then, I'm sorry to say but government bonds still have some value. Maybe not 100 cents on the dollar, but something.
If they renege on paying principal AND interest wouldn't they be worthless, as in $0.00? Of course, that would never work, the bankers of the Fed lose their out of thin air gravy, a bail in for the taxpayers, if you will.
Yes I would agree under that scenario. But until there is an official default, then principal and interest are still being paid so you would have to attribute some small value to the bonds.
Maybe you’re overlooking something. Government debt is the means by which a generation(s) of tax consumers financially cannibalizes following generations of tax payers.
Currently, there is enough governmental debt to cannibalize following generations of Americans to the end of time; at least according to data, assumptions and formulas provided by Financial Reports of the US Government.
Now, really, can a society that eats its children survive? Doesn’t a society have to preserve its children to survive?
Granted, US debt instruments will continue to have purchasing power as long as a sufficient number of people believe the US Treasury can cannibalize following generations of Americans.
But this practice of wishful thinking does not erase the conclusion that this society of cannibals deserves to be extinguished… and replaced with a society based on American Founders’ ideals, minus their mistakes.
Some more withdrawn and Gold will change position on the periodic table, will be classified as liquid gas.
hehe.
Make no Mistake
Enjoy. Mrs. Atomizer material. Welcome to our Type A personalities.
Thats why we co-exist. I'am Clive Walter Swift, she is Patricia Routledge.
The 2014 late day Bickertons episode.. No one could replace her or fill her shoes. Priceless woman. I call her my bull running though a china shop. Glad she is back home in SC.
Thanks for the link Atom.
"you can fool a man sometimes and you can fool a woman sometimes,
but you can't fool a man and a woman"
C.A. Fitts
Glasgow Gary ' That bull market happened exlusively because of behavior and perceptions'
That's stating the obvious, everything and I mean everything is priced on that basis, which is why so much effort goes into changing perceptions, especially regarding gold.
Stay away from paper silver & gold. You'll retain assets via physical. Winks.
Gold is and always will be protection from sovereign debt default. I see this on the horizon, not isolated to the United States. It remains as insurance against monetary manipulation over time. Others know this too.
Bingo! We have a winner!
Yes, we see history is full of debased currencies. They can't help but debase as they grew too big for their britches with war, usually. Conquest is expensive, occupation more so.
Want to end the gold farce? Line up the war profiteers, banksters, and shoot them dead like they used to do? . There, all fixed.
What are practical ways to use gold in human everyday life? Can you eat it? Is it best in some ways for some tehnologies?
Or again - it simply some metal peace that has some virtual value humans agree upon - most of the time?
Chew down a Benjamin. Tell me how QE is tasting by comparison to gold?
Actually both are detached from reality - gold (what ever metal) and current currencies: USD, RUB, EUR, etc. Only difference is - currently RUB is in very bad condition - it's collapsing first... with Putin regime.
Regardless of your pathetic thoughts, gold is purchased by CBs for a reason. Until they stop, and they won't, gold is a store of value that is impervious to decay, whether that be digitally or paper. I wish you luck. You are going to need it.
See this: https://winklevosscapital.com/money-is-broken-but-its-future-is-not/
About 250 tons per year is consumed in electronics. About 50gm per cell phone. It has unique properties that make it difficult if not impossible to replace. It is easily divisible, doesn't tarnish, fairly inert, universally recognized and has the rest of mankind as its counterparty. Other than that, its been nearly "useless" for 6000 years.
regular rocks are als inert and dont tarnish
Can you make a plasma containment vessel out of rocks?. Can you make smart phone conections out of rock? Give it a rest.
The gods used gold as a radiation shield amongst other things.
In a world where "regular rocks" were as scarce as gold and gold were as common as regular rocks, gold would be near worthless and rocks would have great value.
That phone statistic is pretty out of whack. 50 milligrams, maybe. 50 grams of gold is 1.6 troy ounces, if there's that much in a cell phone I'm going into the phone to gold arbitrage business, as I could gross $1,920 per phone that would cost me at most $600 new.
All industrial use for gold is about 12% of gold mined per year (2,500 tonnes), so about 300T total, so your total number isn't that far off.
Yes, I meant mg obviously.
Gold doesn't oxidize. But of course if you have wealth to store in gold, first you require an army and fortifications. As Howard Hughes and Bill Gates learned, the hard way.
Money must have 6 characteristics to be successful long term as money:
1) Must have intrinsic value.
2) Must be durable.
3) Must be easily divisible.
4) Must be consistent in quality.
5) Must be valuable relative to its weight.
6) Must be relatively scarce.
Gold is one of the few things (if not the only thing) on Earth that has ALL of these characteristics.
It must be impossible to be printed or mass produced by any government.
The US government has lied to the American people about Korea, Vietnam, Iraq, Afghanistan, and Syria. And not even especially good lies.
The Covert Origins of ISISThese lies show how compliant the mainstream media is to US and Israeli government narratives. The media has even thus far largely refrained from examining the role of Saudi Arabia as a sponsor of terror and Salafist mercenaries, content to repeat complete lies about Iran and Hezbollah and Hamas on orders of the Deep State.
It will lie when it comes time to give Israel diplomatic cover, munitions, and money, to once again trump up and excuse to attack Lebanon. It will finger Saudi Arabia as having a hand in 9/11 while whitewashing the much larger role of Israel and the US government itself.
The American Deep State is primarily in the hands of the large banks and ultimately a handful of Jewish banking dynasties which ostensibly own most of the NY Fed, the One Ring of this ongoing fraud, by the Military Industrial Scurity Complex, and by Israel and its 5th Column amen corner of Jewish sayanim and useful "Christian" Zionist idiots.
Banks and the MIC will happily profit from any war - they will fund and arm both sides. Note the primordial, basic role of having the public currency issued as a loan at interest by privately held banking corporations.
Regardless of how politically verboden it is, there is no serious question about whether or not Jewish banking dynasties play a large role in central banking and international corporate finance. To protest this claim is to object not to its veracity, but to revealing this wildly disporportionate share of power.
But as to where the future fighting and killing is to be done, we are past the threat of global communism, and some other bogey man was likely anyway - but as it happens, any legitimate efforts against global criminal and terror networks was immediately sacrificed to Greater Israel and Likud Zionism, itself able to have such disproportionate power, though not a majority of Jews globally, due to the powwr and wealth of International Organized Jewry - Zionist or not. Again, the evidence for this is right out in the open and abundant - and the objection is not as to truth but as to exposing disproportionate, and right now, maleficient power
Israel-Firsters: The Greatest Danger The Unfolding of Yinon's “Zionist Plan for the Middle East ...This isn't just an opinion, it is not based on "hate" - it is based on the overwhelming evidence of a Jewish/Zionist hijacking of American foreign policy that has the US running around the middle east spending trillions to topple states which are no threat to it.
Iraq was not about oil - if it were, we would have used the oil to pay for the war effort. It also makes little sense to spend 3 trillion to buttress the petrodollar scheme when sanctions on Iraqi oil sales limited the effects, and in any event, Hussein could easily have been bribed.
No - it was for Israel. Zelikow admitted as much, and the people responsible for fabricating the lies - not mistakes - lies in the office of special plans were Zionist Jews - several of whom had previously worked for Netanyahu and written white papers that were regurgitated for an American audience, targeting Iraq and Syria.
The Lie Factory | Mother Jones “The machiavelian threefold game of the neoconservatives ...Because this involves Jews - and no, "Jews" does not mean "all Jews" any more than "Saudis" means all the Saudi or Arabian people - and Israel, that which should be obvious is obfuscated, and that which should be a major story for journalists is kept in the dark.
Even if most Jews are not right wing or Likudnik Zionists, is is the power and wealth of organized Jewish groups itself which allows the Likudnik minority to have substantially outsized influence on the American Deep State and intelligence, much of which is almost assuredly compromised by Israel and its Jewish sayanim.
Shady Companies With Ties to Israel Wiretap the US ... - Wire NSA and Israeli intelligence: memorandum of ... US NSA Gives Israel Raw Intelligence on US Citizens ...If you look into decades of the non-prosecution of Israeli spying, the non-investigation of Israeli moles and psies before 9/11 - you have to assume that the entire US government has been completely compromised.
Israel – America's Biggest Frenemy - Antiwar.com OriginalThe result of all this is more war, more debt, a real economy that continues to degrade even as jobs are off shored, Indian engineers are on-shored, and illegal, unskilled immigrants are allowed to continue to flood the country and make it more like Mexico. But it is most of all the people of the middle east who will suffer. Tens of thousands killed and wounded by US and Israeli bombs.
And for what?
Because European Jews- people who are distant relatives and distant religious cohorts of the semi-mythical Israelites of the Torah - written centuries after the alleged history...but who themselves come, on the female side, from largely pre-IndoEuropean, manifestly not middle-eastern genetic stock....
think they have a god-given right to an expansive Zionist Kingdom far larger than any of the minor, petty kingdoms of ancient Hebrew leaders, who themselves always shared Canaan with other peoples, who as a people always lived outside Canaan, and who recorded the barbarity of their worldview in their own holy books - which, really, people ought to read.
It is a code for ethnocentric megalomania and violence, and eventually, it will lead to global thermonuclear war.
Jonathan, you speak truth to power. Hopefully the following words of Arthur Schopenhauer will be of some consolation to you.
"All truth passes through three stages. First it is ridiculed. Second it is violently opposed. Third it is accepted as self-evident."
Whose "truth"? Your's, mine, or someone else's.
There are many "truths", many of them in direct contradiction to one another.
Welcome back!!!
I've always been right here.
Dude, u r a wacked out idiot that has lost their mind. When u pump that wacked out crap, you lose all credibility. U r a prime example of what happens to a clueless, undisciplined mind that runs away and pukes all over itself. At least try to get some chemical help since u insist on being a fool all your life.
Zionist?
No, a smart satanist who happens to be a Jew
Zion only refers to a small mountain in Israel
God only promised them this small country to be used for an example
But things have not gone so well
They didn't follow the instruction manual
I wish you guys would stop blaming all the corruption in the world on Jews
Muslims who are taught in their Koran to kill and fight Jihad until the world confesses Alah
But still, somehow, you blame it on the Jews
Incredible
incredible self pity
Faith is designed to distract and divide human.
And you have been suckered into the paradigm.
Literally nothing I have ever said or written, or thought, has blamed anything, let alone everything "on Jews" - what you can't seem to understand however is that the neocons were mostly Jewish, all Zionist, all Islamophobic, and a goodly portion who believed the complete nonsense you do about a Creator being both a racialist and a real estate agent.
Can you refute a single thing I said?
Was PNAC led by Polish Catholics? Was the Office of Special Plans staffed by a man who spied for Italy and full of Russian dual citizens?
No - they were right wing, Likudnik Jews.
FACT - whether or not you are too dumb to understand that a fact is not an opinion.
If All A are B, do you think that means all B are A? You surely do in practice. Because while {just about} all Likudnik Ziopaths are Jews, it does not follow that all {or even most} Jews are Ziopathic Likudniks.
The failure to understand that 'all A are B' does not mean the reverse seems to only be problematic with people like you as to Israel. Absurd, sweeping generalizations about Muslims, or blacks, or 'whites' are ingested without protest.
Why don't you try reading some of the links - it is dishonest to comment on what you haven't read, and dishonesty is a sin.
I don't want to see anyone being killed or maimed, whether Christian, Muslim or Jew, either to protect a currency, or to impose global governance/currency - or to fulfill some insane, idiotic, false understanding of "prophecy" - one tinged with unequivocal racism and violence, myth and hate.
Can you say the same?
Germany joining the EU makes about as much sense as me joining an Ebola critical care ward....
The Rothschilds owe everything to the Netherlands.
There would be no Central Bank without Orange.
There is no story here...it was a simple payoff to the Dutch to keep their findings on who took down MH17 to themselves.....no one else will get any gold.....
You could wellbe right.
It was a bribe to the Dutch to be sure.
I do not want responsibility for your gold. If I am holding your gold, that is the wealth of your 1% scum, it is because they have demonstrated their vile nature such that I have to have them by the nuts to protect the rest of us from them.
Screw these genocidal maniacs. They hate us because we check them from killing us all.
I love America for my fathers' efforts against the oligarchs. But now we appear to be overrun. I fight.
Pol pot - Or a simple compensation payment once the Dutch completed their enquiry!
http://www.ft.com/cms/s/0/7df68668-7019-11e4-bc6a-00144feabdc0.html
While abundantly accommodative policy has boosted the price of risk assets, the rising tide of asset prices has not lifted all boats. Rather, capital market pricing has disconnected from economic fundamentals. Are we to assume that fundamentals will catch up? Or should prudent investors start pruning risk from their portfolios?
The Federal Reserve implemented extraordinary measures as a crisis management tool, yet now seems to lack conviction on when to normalise rates. Zero rates were supposed to end when unemployment dropped below the 6.5 per cent “trigger”; that “trigger” became a “threshold” and that “threshold” vanished into the policy ether even as unemployment continued to improve.
Unwilling to declare victory and withdraw, it seems the Fed has forgotten the proper role of interest rates: to ensure that scarce resources are put to their best use.
Artificially low rates mean that improperly qualified borrowers obtain loans and then bid resources away from those who might employ them more productively. Along the way leverage accumulates, increasing financial risk and market volatility. One does not have to look far to see signs of building financial excess.
Issuance of covenant-lite loans has dramatically expanded, share repurchases have become a key driver of stock valuations and short maturity interest rates remain in negative real territory. These imbalances have elicited mostly yawns from Fed officialdom. Why raise rates, goes the thinking, with prices tame and labour still slack?
Alas, low inflation does not immunise the economy from financial deleveragings and economic downturns, as the 2008 housing meltdown demonstrated. A central bank that ignores credit market excesses, preferring to believe it can dial up or down whatever level of wage growth or unemployment it considers optimal, is one that does not understand its limitations.
If growth were a simple problem of credit and demand management, we would not be having this discussion. If wealth followed in the wake of money printing, Venezuela and Zimbabwe would be members of the G20. Or consider the eurozone, one central bank but 18 countries – some with Great Depression unemployment levels and others with full employment. This disparity of performance cannot be explained by interest rate policy. Rather, it is attributable to relative competitiveness between states.
In a global economy, nations offering consumers what they want at prices they are willing to pay capture their fair share of global demand. Those that deploy their productive resources inefficiently experience disappointing wage growth and high unemployment.
In the US, continued wage stagnation and low labour force participation suggest the Fed’s policies cannot be effective without a more competitive domestic economy.
The Fed’s reluctance to pull the plug on zero interest rates is understandable. Since low rates have enabled activities that would not survive a rate rise, a renormalisation will be painful. Rising rates will price out marginal borrowers. Default rates in corporate and high yield loans will rise, pushing risk premiums wider. Higher capital costs will damp asset prices. So why do it?
Because “kicking the can” means the inevitable deleveraging will be more painful. Sustainable growth comes from improvements to work process and product. Merely adding leverage to a business does not improve its efficiency; higher home prices do not increase the wages of those in the home.
The Fed can multiply the quantity of funds, but that increase does not add to the nation’s capital stock, enhance the skill of its labour or expand its access to natural resources. The game of pretend ultimately has to end. For investors, the question that matters is when and how.
When the end game comes, leverage will be forced out of the system and asset prices will fall. If the Fed is willing to recognise that ultimately its policies cannot dictate economic realities, rate rises should begin soon, presumably in 2015.
A path of proactive, controlled deleveraging means the pain will come sooner, but the severity will be relatively muted. If the Fed fails to remove the punchbowl, the belated deleveraging will come anyway catalysed by the capital markets, which will not be pretty.
ok I will stop pussyfooting around.
Here is the deal.
US will decline further.
Gold will continue to move to Europe.
Rich Americans will follow the Gold.
Snowden gets asylum in Germany. If what he says is true, he did the right thing and is a brave man imho.
Possibly we will see some CIA and NSA folks jump ship ( they will call themselves whistleblowers or something akin to conscientious objectors ) and move East.
I try to move West for a while.
YeeeeeeeHaaaaaaa
The NWO is collapsing.
Germany needs to grow some balls... or ask Netherlands for the "magic words" (which might be "say nothing public at least until you have your gold back").
Germany also needs to grow some brain cells, and demand ALL their gold back, not just some minor portion. And the same goes for everyone who doesn't hold their own.
Nothing to see here. Move along.
In other news: http://online.barrons.com/articles/wal-mart-cfo-sells-2-1-million-near-r...
us. fed., deutsche bundesbank, snb, and de nederlandsche bank, 4 of the 60 BIS members.
i don't know how many of these 60 are like the us. fed., (purposely unaccountable in every way).
i think the small guy better be careful, the BIS could be manipulating gold lower so other BIS cb's can buy????, repaitriate????, re-lease????, take off lease????, gold?????.
india, china, russia, and america to a small part are the only countries that give any hint to the amount of gold being exchanged physically, MAYBE, central bank of the russian federation, and peoples bank of china, are 2 of the 60 also.
i've stated before, i went from pesimistic, to a full-on coantrarian, 85% of that printed, or orated, as news in america is propaganda, and proven so, over 90% of the time.
i know one thing when your own govt. goes all-out to control their citizens, it usualy it ends bad.
I have an idea, why dont all central banks agreed to re-evaluate gold equivalent to deleverage a significant amount of there debt.....
Goed gedaan jongens!
OT - looks like the swiss gold initiative has been rejected.
Swiss reject gold:
http://snbchf.com/gold/swiss-gold-referendum-latest-news/
Big spike in July, the same month a plane full of their citizens was shot down over Ukraine.
Gold repatriated...
In the 4 months before MH17: ~25 tonnes
In the 4 months after MH17: ~95 tonnes
Coincidence?