This page has been archived and commenting is disabled.

Draghi: We Have Nothing To Fear But Gold-Buying Itself

Tyler Durden's picture




 

ECB head Mario Draghi made it clear where the real battle is taking place in the world this morning. When asked what form QE would take, his response was to the point... "On what sorts of assets should be included in QE... we discussed all assets BUT gold" and gold dropped, right on cue.

 

Not really sure which assets we discussed but definitley not gold!!

 

And the result...

*  *  *

So to summarize, the ECB will willingly take on Greek bank CDOs, Italian 3rd lien espresso shop loans, Spanish condo HELOCs, and Portuguese Used-Car ABS... but not - never - gold.

*  *  *

It appears we now know who the enemy really is... not deflation but the dreaded barbarous relic, gold.

Perhaps this is why, as Kyle Bass so eloquently noted:

"Buying gold is just buying a put against the idiocy of the political cycle. It's That Simple"

Q.E.D.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 12/04/2014 - 12:38 | 5516833 bluskyes
bluskyes's picture

When the ECB comes out publicly, wanting to buy from the masses. it will find that very few are willing to sell without a gun jammed in their backs.

Thu, 12/04/2014 - 12:41 | 5516841 bigdumbnugly
bigdumbnugly's picture

gold.

 

 

 

 

the king of four letter words

 

Thu, 12/04/2014 - 12:43 | 5516858 linniepar
linniepar's picture

I truly hate this (gold)man. Central bank lies shall be exposed for what they are worth; broken promises and thievery.

Thu, 12/04/2014 - 12:47 | 5516873 Pladizow
Pladizow's picture

"A choice must be made between the natural stability of gold and the honesty and intelligence of the members of government, ...... I advise you, as long as the capitalist system lasts, vote for gold.” - George Bernard Shaw.

 

"The last duty of a central banker is to tell the public the truth" - Alan Binder Federal Reserve Board Vice Chairman, Nightly Business Report 1994

 

  “The absence of gold as an intrinsic part of our monetary system today, makes our century, the one that has just passed, unique in several thousand years.....”  - Robert Mundell, 1999, accepting the Nobel Prize.


 


Thu, 12/04/2014 - 12:51 | 5516907 TheAnalOG
TheAnalOG's picture

We don't have much gold but we is still young and young men need more bangs for we buck so we buys silvers and bitcoins.  But golds is good for we too.

Thu, 12/04/2014 - 12:55 | 5516932 BaBaBouy
BaBaBouy's picture

PROOF...........

GOLD Is The Ultimate Asset, Money...

Paper Pedling BullShiters Detest And Deplore GOLD...

Thu, 12/04/2014 - 12:56 | 5516944 kliguy38
kliguy38's picture

WE DONT NEED NO STINKIN GOLD.......we gotz paper........hehehehehehehe

Thu, 12/04/2014 - 13:01 | 5516958 Latina Lover
Latina Lover's picture

Channeling Draghis puppetmasters: WEwould rather buy 10 year paper in Italian sovereign debt obligations, paying less than 2 %, yielding  a real negative return of at least 2 %,  to extend our ponzi scheme for a little bit longer....

Thu, 12/04/2014 - 13:09 | 5516994 strannick
strannick's picture

When it gets serious you lie. -JC Junker. EC

The last duty of a central banker is to tell the truth -Arthur Burns. Fed Chairman.

These media blips are for perception management, not to inform, obviously.

Thu, 12/04/2014 - 13:22 | 5517050 economics9698
economics9698's picture

Gold = Kryptonite.

Thu, 12/04/2014 - 13:33 | 5517067 BaBaBouy
BaBaBouy's picture

"On what sorts of assets should be included in QE... we discussed all assets BUT gold"

... TALKING Shit About GOLDAgain ...

THEY ARE PAPER WORRIED, VERY VERY PAPER WORRIED...

If There Wasn't A Problem They Would Never Mention GOLD At All.

The Clock Is Ticking... THEY ARE Very Right To Be PAPER WORRIED...

Thu, 12/04/2014 - 13:47 | 5517128 nope-1004
nope-1004's picture

If Draghi, an ex Goldman parasite, said they aren't interesting in gold, then guess what?  They are, and he's full of shit - again.

Even if he's not lying, his statement makes it all the more clear why you should own gold and stay away from their corrupt, sinister, dishonest financial gimmicks.

But just to play along, I wonder what then they did discuss.  Cocoa?  Buttons?  Oh... I know.  Bonds, MBS and CDS..... those nefarious, fake, fraudulent "assets"..... lmao.  What a clown.

 

Thu, 12/04/2014 - 15:24 | 5517527 7.62x54r
7.62x54r's picture

Fear gold, bitch.

Thu, 12/04/2014 - 17:18 | 5518060 saveandsound
saveandsound's picture

Such an honorable man, this is true integrity!

If you want to push asset prices, why would anybody want to buy precious metals? No, no, no, there is no currency crisis ahead, no. Maybe in Iran or Russia, but not in the finicially stable states of former industrial nations, no way.

Sound money, bitches.

Thu, 12/04/2014 - 13:30 | 5517072 Aaaarghh
Aaaarghh's picture

Lets be honest, they gotta be really shitting themselves now.

This is just a public display of it.

Thu, 12/04/2014 - 13:53 | 5517169 Alea Iactaest
Alea Iactaest's picture

Anyone thinking the only way they will cough up the shiny is under threat/coercion (e.g., gun jammed in back) is simply not very creative. You're only thinking "stick" when you should be thinking "carrot".

Let's say Au goes to $5k/oz. USGovt announces an "amnesty" program... sell your gold now and you will pay NO capital gains or any other taxes. This is a 6-month offer, take it or leave it. My guess is there are quite a few people who will take advantage of that offer, without thinking about the likely price 2, 5 or 10 years later.

Now let's add some "stick"... USGovt adds that gains on future sale of Au will be taxed at a 70% rate. Sell now or get taxed later.

My point is that I'm barely even trying here, and I can come up with a bunch of scenarios where evil hoarders will willingly drain lakes and ponds.

Thu, 12/04/2014 - 14:01 | 5517209 EINSILVERGUY
EINSILVERGUY's picture

I think it goes underground at that pont. Sort of like the moonshiners

Thu, 12/04/2014 - 15:31 | 5517565 7.62x54r
7.62x54r's picture

It doesn't have to go underground. Just store it abroad. Gold does not have a capital gain unless you sell it.

Instead of selling, have a trustworthy third party hold it as collateral for a bank loan, and then use the borrowed fiat to buy income producing assets that are being sold for next to nothing. Use the after tax income to pay off that loan. You still have your gold, and no taxable event has happened.

Thu, 12/04/2014 - 16:50 | 5517943 EINSILVERGUY
EINSILVERGUY's picture

if you dont hold it you dont own it

Thu, 12/04/2014 - 15:06 | 5517446 Silverhog
Silverhog's picture

Gold is already money. Governments will offer "new" suppose Gold backed fiat to intice Gold holders to trade in their nest. They will say it's redeemable for Gold. But bet your ass it wll not be for the masses. Just private entities within government agencies that continue the swap game. 

Thu, 12/04/2014 - 13:11 | 5517014 bwh1214
bwh1214's picture

All this tells me is that in the coming years gold will be the only asset not in a bubble while the central banks maintain their shaky control thus the only thing worth buying.  Once the central banks lose control gold will regain a rational value and overshoot to the upside.  

Thu, 12/04/2014 - 13:43 | 5517119 TheAnalOG
TheAnalOG's picture

Don't think they have years left to play with here.

Thu, 12/04/2014 - 16:21 | 5517832 SilverIsMoney
SilverIsMoney's picture

We've been saying this quite a long time now...

Thu, 12/04/2014 - 12:59 | 5516922 BaBaBouy
BaBaBouy's picture

.

Fri, 12/05/2014 - 06:54 | 5519753 StandardDeviant
StandardDeviant's picture

"[A]s long as the capitalist system lasts, vote for gold.”

Well, fair enough, Mr. Shaw.  But once the last remnants of the capitalist system are gone, you'll need it even more.

Thu, 12/04/2014 - 12:47 | 5516891 Ozy_mandias
Ozy_mandias's picture

Every day is opposite day for bankers and 'economists'

Thu, 12/04/2014 - 12:52 | 5516912 scrappy
Thu, 12/04/2014 - 12:55 | 5516934 midtowng
midtowng's picture

So they don't want to buy gold after a multi-year 40% correction, huh? Kind of like Brown selling England's gold in 1999.

Thu, 12/04/2014 - 12:59 | 5516960 Debeachesand Je...
Debeachesand Jerseyshores's picture

Amen to that bigdumbnugly....

Thu, 12/04/2014 - 13:02 | 5516972 thetruthhurts
thetruthhurts's picture

Ignore that man behind the curtain......pay attention to the screen in front of you!

Thu, 12/04/2014 - 13:21 | 5517042 jaxville
jaxville's picture

 I have been trading gold (and silver) professionally for over ten years and on an informal basis for over two decades before.  I have gotten lucky more times than I missed the boat and have done quite well.  In all those years though I have never felt such a sense of urgency of holding as much physical as possible as I do now.  The price in terms of fiat is just noise and waiting for lower prices to take a position is like playing Russian roulette.  You might get lucky but then again ...

  Watching the video reinforces that as the speaker is clearly lying.  Gold was likely the centre of their discussions. 

  Time to get out of the water folks

Thu, 12/04/2014 - 14:12 | 5517260 EINSILVERGUY
EINSILVERGUY's picture

dupe

Thu, 12/04/2014 - 14:12 | 5517261 EINSILVERGUY
EINSILVERGUY's picture

I saw a article on how to spot when a person is lying. It was about the genuine expression of grief. They showed a woman who had murdered her children and then told the story matter of fact to a news reporter. At the end when she tried to verbally convey her grief she stopped and then gave a half smile. Its referred to as 'duping delight". Tell me thats not what Draghi is doing at the end. 

https://www.youtube.com/watch?v=GutAbsKWLsY

http://180rule.com/definiciones/duping-delight/

 

 

Thu, 12/04/2014 - 12:39 | 5516845 achmachat
achmachat's picture

for all those who were waiting for an official denial: here you are!

 

it has begun.

Thu, 12/04/2014 - 12:55 | 5516931 Winston Churchill
Winston Churchill's picture

Exactly, means we are returning to the gold standard, and he doesn't want the Muppets

forewarned.

Very bullish for gold.

Thu, 12/04/2014 - 13:10 | 5517005 jaxville
jaxville's picture

  I suspect they will use the gold standard and fixed convertability as a means to both devalue currencies as well as a defacto confiscation.  Gold will be priced so high that the public will rush out to have their gold crowns pulled to cash in.  Jewellery, art objects and all but the rarest coins will find their way to the smelters then central bank vaults. 

   No one need be forced to sell if the set price is high enough.  After a decade or so people will realize that they should be buying instead of selling.  Convertability will end and the gold will never see public hands again until that happy day when bankers and the politicians they own are swaying in the wind at the end of ropes.

Thu, 12/04/2014 - 14:03 | 5517220 Latitude25
Latitude25's picture

Won't happen in India

Thu, 12/04/2014 - 15:29 | 5517544 jaxville
jaxville's picture

I agree that such a plan will not yield the best results in India, Red China or other nations where gold ownership is a cultural trait.  The threat to the credit based system comes from those who have the potential for flight into precious metals.  Western nations where gold ownership is near historic lows and participation in the financial sector are near record highs are the main threat. 

   If just 5% of Western assets moved into specie it would result in chaos.

Thu, 12/04/2014 - 13:24 | 5517052 astoriajoe
astoriajoe's picture

That sounded more like an official admission to me.

Thu, 12/04/2014 - 13:54 | 5517180 jarana
jarana's picture

but gold?why?

excusatio non petita, acusatio manifesta

Thu, 12/04/2014 - 12:38 | 5516834 Theta_Burn
Theta_Burn's picture

And people say that Krugman is fucked up...

Thu, 12/04/2014 - 12:38 | 5516836 Silver Short Seller
Silver Short Seller's picture

If you haven't figured it out by now, ZH is a Kremlin backed gold pump and dump scheme.

Thu, 12/04/2014 - 12:48 | 5516883 Theta_Burn
Theta_Burn's picture

As opposed to say.. a federal reserve pump and pump and pump and dump scheme?

Thu, 12/04/2014 - 13:28 | 5517063 Aaaarghh
Aaaarghh's picture

kremlin backed, but aren't china and india also buying gold? why single out the ruskies? There is more TRUST involved in gold than there ever will be in paper as a store of value.

Thu, 12/04/2014 - 12:49 | 5516900 socalbeach
socalbeach's picture

We junked some folks.

Thu, 12/04/2014 - 13:17 | 5517032 Eyeroller
Eyeroller's picture

We pumped some folks.

Thu, 12/04/2014 - 12:58 | 5516951 Latitude25
Latitude25's picture

I gave you an up arrow becasue I feel so sorry for you, even though you're an obvious idiot.

Thu, 12/04/2014 - 13:39 | 5517102 fooshorter
fooshorter's picture

I have repeatedly called out the russian circle jerk on ZH, much to the dismay of my fellow... 'commerades' rest assured i am no fan the NWO war machine or that animal putin.

 

But ZH is niether backed by the kremlin, nor the NWO so... GOLD BITCH. EVERYDAY EVERYWAY.

Thu, 12/04/2014 - 12:39 | 5516837 astoriajoe
astoriajoe's picture

So you're saying Silver is on the table? Awesome.

Thu, 12/04/2014 - 12:40 | 5516843 cpnscarlet
cpnscarlet's picture

For Once, I think we have a news event that is GOLD POSITIVE.

BTFBR

Thu, 12/04/2014 - 12:48 | 5516888 Bay of Pigs
Bay of Pigs's picture

So Bad News = Good News?

Anything coming from Draghi I think you are correct.

Thu, 12/04/2014 - 13:39 | 5517109 fooshorter
fooshorter's picture

BR? for those of us in the peanut gallery...

Thu, 12/04/2014 - 13:57 | 5517194 Alea Iactaest
Alea Iactaest's picture

barbarous relic, methinks.

Thu, 12/04/2014 - 13:58 | 5517204 cpnscarlet
cpnscarlet's picture

Yep -

As long as you can take the pain.

Thu, 12/04/2014 - 12:41 | 5516844 Dr. Engali
Dr. Engali's picture

So in other words their main asset for buying will be gold. He is a muppet slayer planted by the Squid after all.

Thu, 12/04/2014 - 12:43 | 5516854 Manthong
Manthong's picture

Once a squid, always a squid.

Thu, 12/04/2014 - 13:18 | 5517038 Terminus C
Terminus C's picture

He's not a squid, he's not even a tentacle.  He's a sucker on a tentacle.

Thu, 12/04/2014 - 12:40 | 5516847 debtor of last ...
debtor of last resort's picture

We're getting closer.. and closer..

Thu, 12/04/2014 - 12:51 | 5516904 Tinky
Tinky's picture

Bingo!

Thu, 12/04/2014 - 12:41 | 5516848 ukspreads
ukspreads's picture

Nice bit of selling action today in the Indices markets. What odds would I get I wonder for a green close later? 

Thu, 12/04/2014 - 13:20 | 5517040 ukspreads
ukspreads's picture

Well, I knew I had every chance of winning that wager, but I would never have guessed it would begin so quickly..

 

Watching the Dow recover after a big drop is similar to watching the liquid metal Terminator reassemble itself after getting smashed !

Thu, 12/04/2014 - 12:41 | 5516851 Seasmoke
Seasmoke's picture

Well at least he admitted Gold is an asset !!!

Thu, 12/04/2014 - 12:44 | 5516872 KurtRand
KurtRand's picture

That they are not selling nor buying. Why this would effect gold is beyonf me. 

Thu, 12/04/2014 - 12:43 | 5516853 tocointhephrase
tocointhephrase's picture

Silver bitchez

Thu, 12/04/2014 - 12:48 | 5516885 Kaiser Sousa
Kaiser Sousa's picture

yeah, now that makes all the sense in the world...
unprecedented demand currently, plus the removal of import restrictions will result in reduced prices for 1 of the only 2 forms of real money??????

more GoonBerg propaganda......

"China’s central bank circulated a draft plan to ease restrictions on gold imports, said people with knowledge of the matter, in a move that may lead to lower prices in the world’s biggest market for bullion.

The People’s Bank of China drafted a plan that will open up gold imports to qualified miners as well as all the banks that are members of the Shanghai Gold Exchange, according to the people, who asked not to be identified because the proposal hasn’t been made public. China Gold Coin Inc., a maker of commemorative gold and silver coins, could also qualify to import bullion, they said.

Chinese regulators are pushing to open up the country’s gold trade and lure foreign investors as part of its broader effort to link the mainland to global markets. The country began offering international institutions access to yuan-denominated gold contracts in Shanghai’s free-trade zone in September, a move that may extend its influence over prices while boosting the role of its currency in global trade."
http://www.bloomberg.com/news/2014-12-04/china-said-to-consider-scaling-...

Thu, 12/04/2014 - 13:01 | 5516965 lasvegaspersona
lasvegaspersona's picture

Any action that removes gold from the overall supply is a positive move for gold. 

It may knock a couple of dollars off the Chinese premium but when the supply of physical is gone we will see a massive rise in the price of physical.

Thu, 12/04/2014 - 12:50 | 5516909 darteaus
darteaus's picture

Are they like gold fingers?

Thu, 12/04/2014 - 15:38 | 5517603 CHX
CHX's picture

So they did discuss buying silver... ?

/sarc

Thu, 12/04/2014 - 12:44 | 5516860 SmallerGovNow2
SmallerGovNow2's picture

Draghi = Cunt

Thu, 12/04/2014 - 14:09 | 5517249 crazybob369
crazybob369's picture

An insult to cunts everywhere.

Thu, 12/04/2014 - 12:44 | 5516862 Temporalist
Temporalist's picture

Of course they didn't discuss gold.  They don't have it, they can't get it in the amounts they'd need, and it's worth something.  Obviously that goes against everything they believe in; sell stuff you don't have or can create in unimaginable amounts out of thin air as long as it's worth nothing.  Why would they use gold for anything?  It's like banker bane; like garlic to vampires.

Thu, 12/04/2014 - 12:43 | 5516863 GVB
GVB's picture

Deep down inside I always knew he was a total moron. So now it's clear. He chose the wrong side.

Thu, 12/04/2014 - 12:44 | 5516869 Bay of Pigs
Bay of Pigs's picture

Gold up over 10% in Yen terms the last two months. Up 14% the last year as gold dropped in USD terms. I wonder what the Japenese think about holding physical gold as their currency implodes?

http://www.kitco.com/gold_currency/index.html?currency=jpy&timePeriod=1y...

Thu, 12/04/2014 - 12:56 | 5516935 Temporalist
Temporalist's picture

<The Japanese think they wish they'd owned more gold

<The Japanese think they should listen to Central Bankers

Thu, 12/04/2014 - 13:03 | 5516974 lasvegaspersona
lasvegaspersona's picture

That change in the price of gold sounds like it is 100% due to the USD/JPY rise.

I think of gold as just another currency (paper gold that is) they all relate to the dollar, for now.

Thu, 12/04/2014 - 12:45 | 5516875 Racer
Racer's picture

China, Russia and India thank Draggedhim very much for letting them buy gold unimpeded by the EU at such lowly levels

Thu, 12/04/2014 - 12:46 | 5516878 FieldingMellish
FieldingMellish's picture

When it gets serious, you have to lie. You can take the banker out of Goldman but never Goldman out of the banker. Buy gold.

Thu, 12/04/2014 - 12:46 | 5516879 escapeefromOZ
escapeefromOZ's picture

quote "we discussed all assets BUT gold" ppoken like a true braindead economist !  To come out with garbage like that , you must go to special schools and Universities that charge very high fees for teaching true GARBAGE !

Thu, 12/04/2014 - 14:01 | 5517212 crazybob369
crazybob369's picture

I'm a firm believer that PhD's and other academics are the educational equivalent of genetic inbreeding. Continue the cycle long enough and you're going to produce some scary results.

Thu, 12/04/2014 - 12:46 | 5516884 Long-John-Silver
Long-John-Silver's picture

It's good to know that all the Gold and Silver I have lost in boating accidents is safe from salvage divers. Who would want that worthless crap. /sarc

Thu, 12/04/2014 - 13:51 | 5517161 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

You lost your phyzz in a boating accident !? o.O

Thu, 12/04/2014 - 12:49 | 5516886 Long-John-Silver
Long-John-Silver's picture

.

Thu, 12/04/2014 - 12:48 | 5516889 youngman
youngman's picture

When you are the printer of fiat...why buy something that slams your paper...if you print junk...you use it to buy junk....not the good stuff

Thu, 12/04/2014 - 12:48 | 5516894 gann1212
gann1212's picture

fuck politicians. they are all pos anyway fuck them all

Thu, 12/04/2014 - 12:49 | 5516896 Glass Seagull
Glass Seagull's picture

 

 

Bullshit.  Every central banker's wet dream is printin money to buy gold.

It's alchemy without the lead. 

A dream for these Babylonian throwbacks.

Thu, 12/04/2014 - 12:50 | 5516898 Colonel Klink
Colonel Klink's picture

Go fuck yourself Draghi, I look forward to the day I've heard you DIED!

I'll celebrate with a toast.

Thu, 12/04/2014 - 12:50 | 5516906 Barry Freed
Barry Freed's picture

"Buying gold is just buying a put against the idiocy of the political cycle. It's That Simple"

 

Best damn reason I've ever heard to buy gold.

Thu, 12/04/2014 - 13:04 | 5516978 Bay of Pigs
Bay of Pigs's picture

Indeed, and ironic he came out and said that right at the $1215 level.

“Gold has been highly volatile over recent weeks. Thus, those who have attempted to trade gold must be poor and exhausted. I have sat with physical gold over recent months and have never suffered anxiety or lost a night of sleep. I never planned to create profits from my gold position, I simply wanted to retain my purchase power. So I bow to gold, the King of Currencies – in gold we trust. ... Gold trading at $1,215 or better will, I believe, set off a short covering melt-up in gold.”

Richard Russell 12/4/2014

Thu, 12/04/2014 - 12:52 | 5516913 loveyajimbo
loveyajimbo's picture

"Draghi" is Italian for "Corrupt Asslick"

Thu, 12/04/2014 - 12:58 | 5516946 Temporalist
Temporalist's picture

I thought all Marios were plumbers.

Thu, 12/04/2014 - 12:52 | 5516916 K Solomon
K Solomon's picture

Why is Draghi specifically saying (and excluding) that four letter word, 'gold'?  The end game must be close.

Perhaps the reporter should have asked the follow up Q - why then did the Dutch CB repatriate their gold back, should they have sold their gold and converted to some other asset to back their QE?

Fri, 12/05/2014 - 14:27 | 5521211 Southside Stacker
Southside Stacker's picture

"why then did the Dutch CB repatriate their gold back, should they have sold their gold and converted to some other asset to back their QE?"

Ironically, I have seen speculation which answers the question:  why did the Dutch get their gold back but not the Germans?  Perhaps it the Dutch got preference because the Dutch promised to lease their gold into the market thereby serving the purpose of the Federal Reserve to cap the price of gold.  Again this is speculation but it does make some sense.

Thu, 12/04/2014 - 12:53 | 5516923 quasimodo
quasimodo's picture

Smarmy fuck, I think he had all he could do to not laugh or chuckle after that comment.....I think even a few of the other folks chuckled a little bit.

Thu, 12/04/2014 - 12:54 | 5516925 astoriajoe
astoriajoe's picture

"....all assets but gold"

yes, but my favorite part of the 23 second clip was after he said that.

...the crowd chuckled, knowingly, nervously. 

Thu, 12/04/2014 - 12:54 | 5516929 pan
pan's picture

Prepare for more smackdowns bitchez....

Thu, 12/04/2014 - 15:17 | 5517489 83_vf_1100_c
83_vf_1100_c's picture

The kids are getting silver bullion for Christmas.

Thu, 12/04/2014 - 12:57 | 5516942 lasvegaspersona
lasvegaspersona's picture

The ECB does not need more gold. If it bought more it would be weakening the currency by introducing more euros. Central Banks are not like really rich people. The job of the CB is to control the currency not to get rich...shit they can print money why do they need to buy gold?....especially when they have 10,800 tons in their system.

Fofoa just discussed this in his recent piece:

http://fofoa.blogspot.com/2014/12/global-stagnation.html

Thu, 12/04/2014 - 13:18 | 5517020 Bay of Pigs
Bay of Pigs's picture

No offense, but what kind of bullshit are you peddling here about Central Banks, and in particular, the ECB and Draghi?

He is lying through his teeth and you want us to believe him on ECB gold holdings?

Thu, 12/04/2014 - 13:18 | 5517037 astoriajoe
astoriajoe's picture

Except that they're trying to induce inflation, not strengthen their currency.

Thu, 12/04/2014 - 12:58 | 5516948 Atomizer
Atomizer's picture

You tell us Mario Draghi, how do you leverage NIRP?

http://thecrux.com/nirp-is-here-europe-has-now-done-the-unthinkable/

Thu, 12/04/2014 - 12:58 | 5516954 Quinvarius
Quinvarius's picture

They don't need to talk about it.  They are doing it.  Plus they are liars to the core.  The opposite of anything they say is the truth. 

Thu, 12/04/2014 - 13:04 | 5516975 Atomizer
Atomizer's picture

Xmal Deutschland |Mondlicht

Hello Mario Draghi. winks...

Thu, 12/04/2014 - 13:04 | 5516977 monopoly
monopoly's picture

It is mindboggling to me how any rational human being with assets and an IQ over 50 could possible sell gold on what Mario, who is obviously mentally challenged and has no idea what to do, says at a press conference.

 

Thu, 12/04/2014 - 13:04 | 5516980 T-NUTZ
T-NUTZ's picture

"....all assets but gold"

 

Draghi won't be buying GOLD because the ECB is a bad bank and only buys crap "assets" that no one else wants to own.  As for GOLD, he also won't be buying because when the SHTF no one will be selling...

Thu, 12/04/2014 - 13:06 | 5516993 monopoly
monopoly's picture

Lets get past the bogus employment report tomorrow and close the week above 1,200. That just might be the tell that this bear market in gold, silver and miners is over. No one ever said this would be easy. 

Thu, 12/04/2014 - 13:08 | 5516995 Son of Captain Nemo
Son of Captain Nemo's picture

"On what sorts of assets should be included in QE... we discussed all assets BUT gold"...

Could Mario make it any more blatant that the "Casino" is rigged???!

Thu, 12/04/2014 - 13:09 | 5517009 lakecity55
lakecity55's picture

"That night, a shipment of Au hiit the _______Central Bank."
"The Poeple would be pissed if they knew we werse stashing all the Au we can!"
"Yes, they will soon see the scheise dollar"

Thu, 12/04/2014 - 13:08 | 5517004 RaceToTheBottom
RaceToTheBottom's picture

Make no mistake, all CBs are at war with GOLD.

The US is trying to pressure all CBs to fly in unison on the Racetothebottom.  Their view is as long as they all agree, they are all safe.

If one leaves the fold, the remainder are at risk.  That will be the impetus for war.

 

Thu, 12/04/2014 - 13:11 | 5517008 artytom
artytom's picture

Draghi also recently noted, as a result of a prompted question, from a young boy in the audience, that he was very proud that Italy had never gotten rid of it's gold reserves. I think that his smiling reply is really meant to be irony. Interesting that he raised the topic this time, without needing prompting.

Thu, 12/04/2014 - 13:12 | 5517012 huggy_in_london
huggy_in_london's picture

Good... that just reinforces that I MUST continue to hold what i have, and infact, add.  

Thu, 12/04/2014 - 13:16 | 5517031 dexter_morgan
dexter_morgan's picture

Kind of unrelated, but LMAO here in Chicago.

the mayor comes up with a plan to change minimum wage to $13/hr here and him and the moron alderman are all taking bows for the cameras.

But, now there are protests going on all over the 'loop' area that $13 isn't enough - they're gonna strike if they don't get $15.......LOL

Just make it $50/hr and be done with it. Since changing minimum wage is good $50 should be way better than $15, right?

Thu, 12/04/2014 - 13:33 | 5517080 NoWayJose
NoWayJose's picture

Just wait until you won't be able to find any fast food restaurants or C-stores in 'the loop' because the owners of those stores will not be able to make any money. $13 is not only an increase what is paid to the employee - it is also extra Social Security taxes, etc that those store owners must pay!

Thu, 12/04/2014 - 15:32 | 5517561 Bemused Observer
Bemused Observer's picture

Small business owners should start employing more folks off the books...negotiate an agreed-upon wage directly with the worker, something that allows both parties to 'get' a little...the employer gets a cheaper worker, and the worker gets to keep his wages instead of handing them to the taxman. Both benefit.
But you HAVE to keep the government OUT of it! That's the only way it works! So yes, you must be a bit 'dishonest' here, you're going to have to learn how to get around the bureaucracy, just like they did in the old Soviet Union, that other great managed economy of the 20th century.
Learn from your Russian brothers and sisters...they can teach you the tricks you need to get through it. They have much experience dealing with a centrally-planned economy, which is exactly what WE have.
Remember, they pretend to pay you, and you pretend to work. That's the 'face' of the economy. The REAL business is done under the radar, where you exchange goods and services amongst yourselves for YOUR benefit, and keep your mouths shut about it. Pay your taxes, wave the flag when ordered, and stay smug in the knowledge that every day that passes is one day closer to your liberation...

Fri, 12/05/2014 - 14:48 | 5521277 Southside Stacker
Southside Stacker's picture

"Small business owners should start employing more folks off the books...negotiate an agreed-upon wage directly with the worker, something that allows both parties to 'get' a little...the employer gets a cheaper worker, and the worker gets to keep his wages instead of handing them to the taxman."

Right Bemused, go ahead and set oneself up for that little red dot that appears either on center body mass or on one's forehead.  Once ex-employees learn that there is a golden pot under the rainbow, any agreement that the small employer thinks they had will be ignored.  Here in California, a small employer that did that would face wage claims before the California Labor Commissioner or lawsuits.  In either case, the plaintiffs would seek penalties and, if an action were to be brought in court, attorney's fees as well.  Your advice would jack up potential liabilty to a multiple of what the basic wage would have been.  A larger employer that did that would face class action lawsuits.  Really BAD advice.

Thu, 12/04/2014 - 15:06 | 5517451 Bemused Observer
Bemused Observer's picture

In a functioning economy, wages would find their proper level. But we don't HAVE a functioning economy, so they try to legislate everything. Rather than fix the system so it can function normally, they think they can just 'set' things like wages, prices, etc, and get to normal THAT way.

Hubris and stupidity. Yes, wages ARE too low in today's economy, but they are broken because the SYSTEM is broken. Today's economy is dangerously over-heated in some areas, while others have gone cold and dead. There IS no 'proper wage' in such an environment, and no way to determine what it should be.

Thu, 12/04/2014 - 13:17 | 5517033 Spungo
Spungo's picture

What an odd statement for him to make. That's like saying "I've been all over Europe. I've seen everything. But not the red light districts. I've never seen those."

First thought to mind: "he knows the red light districts very well"

Thu, 12/04/2014 - 13:17 | 5517035 Atlas Crapped
Atlas Crapped's picture

No reason to discuss it. It's already the number 1 line item on the asset side of their balance sheet.

Thu, 12/04/2014 - 13:21 | 5517045 Dr. Gonzo
Dr. Gonzo's picture

"Thou protest too much. "

Thu, 12/04/2014 - 13:24 | 5517051 D-liverSil-ver
D-liverSil-ver's picture

TPTB don't hate Gold, they dislike the plebians owning physical gold.

Bank accounts can be siezed and houses foreclosed upon with the click of a mouse, but physical gold in someones possession is difficult for them to steal.

Thu, 12/04/2014 - 15:00 | 5517424 Bemused Observer
Bemused Observer's picture

Exactly. They LIKE gold, they just don't like it in YOUR hands. It represents their worst nightmare...wealth they cannot easily tap in the hands of the Great Unwashed class.
A part of the economy they cannot control.

Thu, 12/04/2014 - 13:29 | 5517071 Q-Q-Q
Q-Q-Q's picture

Gold - You can't buy what's not physically available!!!

Greek bank CDOs, Italian 3rd lien espresso shop loans, Spanish condo HELOCs, and Portuguese Used-Car ABS are available by the bucket load.

Thu, 12/04/2014 - 13:41 | 5517117 Jupiter888
Jupiter888's picture

Reminds me of something.....Death To All But Metal

http://youtu.be/yfB7vF7nCdA

Thu, 12/04/2014 - 13:44 | 5517120 1stepcloser
1stepcloser's picture

seems logical to me! Central banks only buy worthless paper and non performing assets at full value.  Gold doesn't fit 

Thu, 12/04/2014 - 13:45 | 5517140 svoboda59
svoboda59's picture

BCE has gold and doesn't need to add pls. look at

https://www.bullionstar.com/blog/koos-jansen/eurosystem-is-increasing-it...

and if you like to know the role of gold in the ECB history search in the FOFOA blog and you may find a different perspective

http://fofoa.blogspot.it/

Thu, 12/04/2014 - 13:52 | 5517167 Prober
Prober's picture

The naive and desperate who have placed their hope and savings in gold trying to escape the monetary insanity of central bankers do not understand how the system works:

1. All governments have embraced fiat currency because fiat currency allows the politicians to create as much money as they want with only keystrokes so that they can spend as much money as needed on wars and free benefit programs to buy the votes of the proletariat to win elections and stay in power.

2. Anything that challenges any component of the system in #1, eg gold, which cannot be created with just keystrokes, will be ruthlessly and relentlessly attacked and eliminated as a threat by the politicians and their monetary agents the central bankers. If necessary, the politicians will just make unlawful the ownership of gold, the exchange of gold for fiat, etc, or force down the fiat value of gold, and even just confiscate the gold - AS THEY HAVE DONE BEFORE and surely will do again if they want to.

3. As long as the apparatus of the government controlled by the politicians, eg central banks, police, courts, tax collection, etc, remain loyal to the politicians and implementing the laws passed by the politicians, then THERE IS NO ESCAPE FROM THE SYSTEM OF OPPRESSION, DOMINATION AND CONTROL, INCLUDING FINANCIAL REPRESSION, CREATED AND OPERATED BY THE POLITICIANS.

Therefore, for those of you with hope and investment in gold, if you want your gold to have free-market value relative to fiat, then you must first overthrow the politicians who run the apparatus of the government which runs on and depends upon the free flow of infinite amounts of fiat and which suppresses all competition to their fiat currency and control.

When and how are you going to undertake and accomplish this ?????

Thu, 12/04/2014 - 14:08 | 5517250 Alea Iactaest
Alea Iactaest's picture

Did you know there are a few billion people who live in cultures that have used gold as money for millenia? Most of these people do not know a thing about the Fed, ECB, BIS or any other western banking entity. They are "third world nobodys" and they buy gold (and silver) whenever they get the chance.

Your view makes perfect sense, until it doesn't. The trigger for when it will no longer make sense will be that time when the supply of physical metals is not easily or cheaply available. I have no idea when (if?) that will happen, but I don't think it is possible to suspend the law of Supply & Demand from now until the end of time.

Someone once said, "you can ignore reality, but you can't ignore the effects of reality." Or Samuel Johnson said as he kicked a rock, "I refute it thus" during a debate of Berkeley's theory of immaterialism.

Thu, 12/04/2014 - 14:38 | 5517349 IndianaJohn
IndianaJohn's picture

Some believe that gold is a sound savings. Immutable even. Investment is something yet different.

Thu, 12/04/2014 - 14:55 | 5517407 Bemused Observer
Bemused Observer's picture

While those things may be true, they have no track record of success. The attempt here in the US to confiscate gold was a total failure. The only people who lost their gold were those who turned it in voluntarily, and maybe a couple who, years later, tried to sell some coins that would have been subject to confiscation had they turned up then...There WERE no door-to-door searches, and no one went around taking the jewelry off of women's bodies.

Lessons? Don't volunteer your gold when told to, and don't keep it in forms that might limit it's liquidity to you, like certain coins, or other easily identified forms. Buy it without a 'paper trail' if possible. (VERY possible...there are PLENTY of private holders of gold, especially jewelry. Buy that, and keep it private. No one needs to know what you bought and when.)

Aside from that, time is on your side. If you can keep your gold out of their hands, they WILL soon go down in flames, and you'll still have your gold for whatever comes next.

Patience is the word.

Thu, 12/04/2014 - 16:17 | 5517642 Prober
Prober's picture

You will die of old age looooooong before the corrupt political systems collapse on their own - the only way that political powers lose their power is by armed conquest, either external or internal.

Unlike previous eras:

1. There is ZERO possibility of the populations of the leading fiat systems (USA, Japan, UK, EU) revolting to overthrow the politicians by force because the politicians have made the populations more than 50% dependent upon entitlement programs from the politicians.

2. There is zero possibility that any of these countries will be conquered by other countries because this time IS different due to the countries having nukes or alliances (Japan) that cover them with nukes.

So these corrupt abusive oppressive exploitative fiat regimes will continue indefinitely,in continuous economic decline, and the quality of life will decline unless and until the people find the balls and brains to overthrow their masters, rather than continue to dance like saw-dust-brained puppets in the absurd theater of macro-inconsequential "democratic elections".

Thu, 12/04/2014 - 20:41 | 5518607 Vooter
Vooter's picture

"You will die of old age looooooong before the corrupt political systems collapse on their own..."

Prove it.

Thu, 12/04/2014 - 16:21 | 5517833 zerohedgejjxxzz12
zerohedgejjxxzz12's picture

" If necessary, the politicians will just make unlawful the ownership of gold, the exchange of gold for fiat, etc, or force down the fiat value of gold, and even just confiscate the gold -"

Just like they have done during the prohibition of alcohol and now with drugs.

They did then and have now conficated all the Liquor and drugs and they are worthless!

What gives drugs a high price is the fact that they are illegal. making gold illegal to own will only create an underground gold market and raise it's price even more!

They will only get away with this fiat ponzi scheme for while longer, then they won't and they know it.

Thu, 12/04/2014 - 17:41 | 5518125 Prober
Prober's picture

The dynamic you described of illegality resulting in increased price is true, BUT then the entire apparatus of the huge police state will be very active in searching for and confiscating your gold - is that where you want your savings "invested", heavy shiny yellow contraband that every cop is lusting to confiscate so he can share in it personally ????

Thu, 12/04/2014 - 20:37 | 5518597 Vooter
Vooter's picture

What gold?

Thu, 12/04/2014 - 13:56 | 5517196 WTFUD
WTFUD's picture

As Tammy Wynette once sang ' Stand By Your (GOLD) Man '

Thu, 12/04/2014 - 14:02 | 5517217 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

It's now official CB hate Gold.

Well they can always buy Bitcoin, make us millionaire, then we will spend on women. Central Bank can now add prostitute in their GDP --> economy recovered !

Thu, 12/04/2014 - 14:05 | 5517236 crazybob369
crazybob369's picture

Gold has always been, and will probably always be, the canary in the mine of fiat currency production. The fiat masters cannot allow that canary to sing too loudly, even if it means killing the damn canary to keep it quiet.

Thu, 12/04/2014 - 14:50 | 5517390 Peter Pan
Peter Pan's picture

"When things get serious you have to lie " = "therefore we will buy gold".

Thu, 12/04/2014 - 14:53 | 5517399 Billy Shears
Billy Shears's picture

If I see something I would like to buy, at the most advatageous price (to myself), I never let on that it has any premium value and say just the opposite, and vice versa... .

Thu, 12/04/2014 - 15:57 | 5517722 Guitarbill
Guitarbill's picture

Why buy Gold when you can just steal it?  Duh!

Thu, 12/04/2014 - 16:25 | 5517854 supermaxedout
supermaxedout's picture

Mario Draghi: .. "On what sorts of assets should be included in QE... we discussed all assets BUT gold"

He is a funny guy and I believe what he said was true.

Gold had not to be discussed because it does not need discussion.

But he wanted to show that gold is important.  He was not asked about gold, thats why he mentioned it. The ECB has lots of gold and is not intending to sell some.

To announce to buy gold would have been the death bell for the Dollar.  So that is never going to happen as long as it is as it is. The ECB does not need to buy gold. Its enough to continue holding it.

My opoinion: very positive for gold


Thu, 12/04/2014 - 18:42 | 5518288 Prober
Prober's picture

Fantasy dream of gold zealots turned nightmare ...

Setting: The politicians are meeting to discuss what to do about all the monetary resisters who exchanged their fiat currency for gold hoping to preserve their savings and escape the fate of the proletariat slaves.

Politician 1: These people were clever and resourceful in escaping the effects of our financial repression, so we should reward them by stopping the suppression of the exchange rate for gold, making gold legal currency again, not taxing away all their gains, etc !

[Group: Gut-busting laughter]

Politician 2: Hey, let us have some of what you are smoking !

Politician 3: I love your sarcastic humor !

Politician 4: OK, now that we had a great belly laugh, let’s plan out how we are going to plunder the loot that these ballsy fools have accumulated !

[Group: Roaring cheers and more gut-busting laughter]

Thu, 12/04/2014 - 23:03 | 5519031 Calgirl
Calgirl's picture

With leadership like Draghi,  no wonder they are fighting utter collapse!  Of course, he only misleads and outright lies when his lips are moving.

Do NOT follow this link or you will be banned from the site!