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Gold Held In NY Fed Vault Drops To Lowest In 21st Century After Biggest Monthly Withdrawal Since 2001
Exactly one month ago we observed that, as expected in the aftermath of the Netherlands' shocking and still not fully-explained gold repatriation from the NY Fed, the amount of foreign earmarked gold on deposit with the Fed had just experienced a 42 ton withdrawal: the single largest outflow of gold held at the NY Fed in over a decade, going back all the way to 2001. This had brought the total amount of YTD gold withdrawals from the NY Fed to a whopping 119 tons: the most since the Lehman collapse.
However, because this total was insufficient to cover just the Dutch repatriation of gold from the NY Fed (which amounted to 122 tons), we knew there would be more activity when the November data hit. Sure enough, earlier today the Fed reported the total amount of earmarked gold (or gold "held in foreign and international accounts and valued at $42.22 per fine troy ounce; not included in the gold stock of the United States") for the month of November: at $8.184 billion, this was a $60 million drop from the previous month (or it would be at the $42.22/ounce "price"; at market prices the value of the withdrawn gold is about $1.7 billion).
In actual tonnage terms, this means that in November some 47.1 tons of gold were withdrawn from the NY Fed, bringing the Fed's total earmarked gold to just 6,029 tonnes: the biggest single monthly outflow going back to the turn of the century. This is also the lowest amount of gold held at the NY Fed vault located at 33 Liberty street (and just across from the even bigger vault located at 1 Chase Manhattan Plaza) in the 21st century.
But even more notable is that with the November data, we now know that all of the Dutch repatriated gold is fully accounted for.
Which brings up a far more important question: net of the Netherlands withdrawals, there is some 44 tons of extra gold that has been also quietly redeemed (by another entity). The question is who: is it now the turn of Austria to reveal in a few weeks that it too, secretly, withdrew some 40+ tons of gold from "safe keeping" in the US? Or was it Belgium? Or did the Dutch simply decide to haul back some more. Or did Germany finally get over its "logistical complications" which prevented it from transporting more than just a laughable 5 tons in 2013? And most importantly, did Germany finally grow a pair and decide not to let "diplomatic difficulties" stand between it and its gold?
We should have the official answer shortly, but we know one thing: it sure wasn't Ukraine.
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Oh all right. It was me.
Great thread and wonderful posts.
If one is a Shylock -- where would one place stolen gold? A trip to former Palestine to kiss a wall, place a note and make a prayer that, just might, be answered?
its no big secret that at the end of wwii, all of the european countries and actually the rest of the entire world had no gold left nor usa dollars in reserves.
the first thing the usa does is confront communist/ socialist ussr versus ussa democratic free capitalism. it was to be socialism v. capitalism?
at the paris conference june 27, 1947 when realities set-in where both sides were going, and then again when the divorce was finally granted, the ussa's nato april 4, 1949 became the ultimate wedge... the soviet union and america finally split, which was both super-powers beginning intentions according to marx's and truman?!? the cold-war began. the soviets formed the communist information bureau [comiform].
the ussa went on a containment campaign?rampage while russia brought its fold under-totalitarianism!
advantage ussa, period! being neutral during both world war's and mopping-up has its advantages?
http://en.wikipedia.org/wiki/Bretton_Woods_system
http://en.wikipedia.org/wiki/George_F._Kennan
http://en.wikipedia.org/wiki/Marshall_Plan
http://en.wikipedia.org/wiki/Truman_Doctrine
http://en.wikipedia.org/wiki/Eisenhower_Doctrine
Important: what the ussa had created was hatred for it's 'beggard-thy-neighbor' policy in the world. instead of freeing countries in third world's or developing new-world nations it used them like pawns. it demanded agriculture versus industry where it felt useful to extend its hand of oppression and now approximately 64 years later were broke with not a friend... a true friend willing to dare turn their backs for fear of becoming a anti-democracy co-conspirator of putinsim.
jmo
ps. now the ussa is broke! no gold, no moar power! when wwiii breaks out, who will be neutral this tyme? remember when world wars start only gold is acceptable currency... and who hold's the most gold, WINS!!!
again jmo
ps2. good job reagan, bush 41, clinton, bush 42, and obi1, and hopefully hitlary for the grand finale into oblivion
vote for Elizabeth Warren if your sick of war...2016
Don't vote at all if you're sick of what results from voting.
Russia Is In Crisis And Putin Is Fighting To Survive It
The Economist
The risk of a financial crisis in Russia has risen because of a precipitous fall in the rouble in mid-December. Recession, falling living standards and rising economic uncertainty look set to be key sources of political instability over the near term.
But despite differences between the economic and security elite, it seems unlikely that financial instability, at its current level, will be enough to produce a political revolution in Russia similar to the one that undid the Yanukovych government in Ukraine in February 2014. However, the desire to avoid such an outcome will continue to inform the actions of the Kremlin at home and abroad.
And even if a full-blown financial crisis were to send the economy into a slump, bringing Vladimir Putin, the president, down with it, security hardliners look better placed to choose his successor than either the economic liberals or a vibrant popular protest movement that has yet to emerge.
Russia finds itself in the middle of a multi-dimensional crisis. Even before the bust-up with the West over Ukraine, Russia's economy had been running into trouble, growing more slowly each year since 2011, owing to the government's failure to undertake structural reforms crucial for innovation and investment.
In the second half of 2014 structural deficiencies have been exposed by a precipitous drop in global oil prices, Russia's main source of export revenue. The rouble followed the oil price down until mid-December, when the Russian currency plummeted owing to a loss of confidence in the exchange-rate policy of the Russian Central Bank (RCB).
In turn, this has exacerbated the debt burden of foreign-currency loans taken out by Russian firms. But because Russia's military actions against Ukraine have led to the imposition of Western economic sanctions, Russia is cut off from Western capital markets.
The rouble edged lower against the dollar on Thursday, with traders saying President Vladimir Putin had offered few concrete measures at his end-of-year news conference to pull Russia out of a crisis.
Riding High
So far, however, Mr Putin remains popular. Before Russia's annexation of Crimea in March, his ratings touched a low point; afterwards, they soared. In early December opinion polls indicated 85% approval for Mr Putin's work as president, with more than 62% of Russians expressing trust in him.
Among the next most trusted politicians, four are members of the government, and one, Vladimir Zhirinovsky, is a deputy in the State Duma (the lower house of parliament) who supports Mr Putin on most issues. Their ratings are in single digits, in line with a generally low level of trust in government overall.
In addition, Mr Putin has spent years building a structure of power that minimises the opportunities, and raises the risks, of challenging his authority. Federal districts-large administrative divisions that comprise several provinces-are controlled by a presidential representative, each with their own dedicated administrative staff. Moreover, Mr Putin's administration also controls the key companies that generate export revenue, either because the state owns a majority stake in them or because their top managers are appointed on the basis of loyalty to Mr Putin.
Some of these managers share a similar background to Mr Putin in the Soviet-era state security service. Now, both Western sanctions and the rouble crisis have increased the dependence of key firms on state support, pushing them closer to Mr Putin's administration. In control of central and regional bureaucracies and with his popularity rating still high, the chances of Mr Putin's rule being brought to an end by either mass anti-government protests or through a "palace coup" currently look slim.
Amid high energy income, competitiveness was neglected
During his almost decade and a half as president (a post that he has held three times) and prime minister (a post that he has held twice), Mr Putin's political popularity has been underwritten by Russia's continued economic growth, as well as by the semblance of a return to order after the lawless 1990s.
Real GDP per head doubled between 2000 and 2013. However, this was explained more by the overlap of Mr Putin's rule with a rise in global oil prices than by the success of the government's development policies.
The Russian economy is made up of a combination of state-controlled enterprises, companies owned by politically connected businessmen and genuine privately-owned firms. This economic structure conditions the kinds of policies that are politically feasible.
Rapid growth in oil and gas revenue discouraged reforms of the real sector. Government finances, supported by a current-account surplus, as well as growing gold and foreign-exchange reserves, remained healthy. Beneath the surface, however, it has become more difficult for agriculture and manufacturing to compete with imports made cheaper by the rising rouble, itself lifted by rising hard-currency earnings.
At the same time, an economy dominated by companies run by the state or by politically linked oligarchs has not been an attractive destination for capital investment, outside of the high-risk, high-reward energy sector. But whereas Russia's current account has stayed in surplus, its capital account has recorded mostly deficits, sometimes large, throughout the past decade. On paper, lower oil prices might be just the incentive required to drive economic reform and diversification.
However, this will have been made much harder by the deterrence of investors, perhaps for some time, owing to the apparently arbitrary and unpredictable behaviour of the Russian leadership, at home and abroad, over the past year.
Perhaps aware of his own limitations, Mr Putin has delegated the administration of Russia's finances to experts with liberal economic credentials. In contrast, key businesses in the real sector are largely administered by officials with more statist views. Ahead of the latest jolt to the rouble, Russia's public finances looked solid-with debts low and reserves high.
The fall in the rouble earlier in 2014 was in large part because of investor perception of the economy's underlying structural problems, long in gestation. This time, a misstep in the timing of monetary policy adjustment in relation to fast-changing external conditions greatly accelerated the pace of depreciation, exacerbating Russia's already worsening terms of trade (the cost of imports in terms of exports).
As the contradictions in the economy unwind, for the general population a sharp boost to inflation will be felt in early 2015.
In part, the overthrow of the Yanukovych government has given Mr Putin an opportunity to distract attention from the problems beginning to emerge from his neglect of the economy. Linked to this, the drop in the rouble and the approaching recession are officially explained as attempts by Western powers to force Russia to halt support for anti-government militias in the east of Ukraine.
Mr Putin presents the current stand-off with the EU and the US as yet another step by the West designed to humiliate Russia and to cut it down to size on the international stage. To this end, Russians have been admonished to mobilise for the country's defence, and the expected fall in living standards is portrayed as a necessary sacrifice to protect Russia's independence.
For now, people have been busy exchanging roubles for consumer durables, lest the rouble fall further. So far, there are few signs of discontent with the president's explanations of the causes of the economic crisis.
Could be worse
Even if most of the spillover from the rouble crisis is averted-as we think it will be-in the coming year government efforts will be directed at minimising the effect of recession on the population. Mr Putin will also need to mediate between two different groups in his entourage-the liberal financial managers, and hardliners in the security apparatus and the real sector, who are broadly inclined to more nationalist and state-centred positions.
The more liberal technocratic group has the best chance of keeping the country's finances under control-and the reputation of Elvira Nabiullina, the governor of the RCB, may even be enhanced if the rise in the interest rates in mid-December stabilises the rouble for long enough to maintain reserves until the oil price picks up (which we expect to happen in the first half of 2015).
On the one hand, Mr Putin will need Ms Nabiullina's kind of expertise during the downturn-which, at his annual press conference on December 18th, he said would last two years. On the other hand, he will need the hardliners to maintain control over law enforcement, the armed forces and security apparatus, which, among other things, will be needed to suppress the insurgent and terrorist activity in the Caucasus and keep the lid on any signs of a resurgence in the democratic opposition in Moscow.
The hardliners would be more amenable to restoring Soviet-style controls over the economy and to imposing currency controls. But Mr Putin seems to realise that this would not be sustainable, and his economic experts are doing their best to keep the country's economic rules compatible with international financial markets.
Therefore, while steering clear of currency controls if at all possible, he is likely to placate hardliners by expanding weapons procurement for the armed forces and continuing to foment low-level military action in the Donbas, thereby channelling the energies of Russian nationalists who otherwise might have forced him to make counterproductive economic policy choices.
As long as a financial meltdown and economic slump are avoided, Mr Putin could succeed in this balancing act-preventing a build-up of economic grievances, as well as intra-elite rivalry, that might otherwise threaten his administration.
If not, the most likely of the other possible outcomes could be a defeat of any popular protests and the economic elite by the hardliners, possibly also involving the replacement of Mr Putin. In politics, this would mean a still tighter crackdown than has been seen already in 2014, and the administration of more populist economic policies by centralised bureaucracy.
Of course the propaganda arm of the Empire of Zion, The Economist, wants to ignore the thousands of tons of gold Russia has stacked.
Ha, Russia is stacking and the US Fed is losing their stack.
Who is having a crisis?
Informative analysis. Thanks!
If i wanted to read the fucking economist i would be there not here, knew it was too good to be true, nearly a whole page of interesting and funny comments and then you show up with your copy and paste bullshit, go away till you got something to say you annoying child, the adults are having a conversation.
do you have any other news to pass from Tel Aviv?
Harry Dent says sell gold and buy dollars. Bill Holter says change dollars for gold? Anyone understand why Dent thinks US fiat currency will be worth anything in a global meltdown?
Because Dent's a moron?
Possibly, deflation.
Haven't read much from Harry Dent lately. In the past he was predicting recession and gold tumbling to, if I recall correctly, 700ish. Last I read he was basing much of his predictions on his studies of demographics, i.e. aging baby boomers passing through the maximum spending age of 46 and then consuming less and saving more for retirement, which they may never be able to afford, but consuming less regardless.
I believe the global economy and international flow of capital (US is the cleanest dirty shirt in the hamper, US treasuries still a safe place (for now) to park money) have more to do with any coming inflation or deflation than Dent's demographic reasons.
US is still biggest kid on the block but we have no where near the lead on the rest of the world that we had a generation ago. If the US sneezes the rest of the world can still catch cold as in the old days but conditions have to be right for it. Like perhaps enough of the other world economies circling the drain? OK, maybe Harry is dead on with this one...
This opinion is worth as much as it just cost you.
Back to killin' snakes
I agree, most likely he's betting on deflation with that advice. It's not wrong, it's just missing context, which is when you have a deflation after a massive printing spree, it blows up the system. Deflation is the last step that precedes hyperinflation, and we're right on track. So this falls into that "picking up pennies in front of steam rollers" level of financial advice, for when the situation turns physical will not be available and paper will not be honored, and it can turn very quickly.
Thanks, Mongoose
When Karl Marx transcribed the bourgeoisie as the “unproductive class” he was writing from personal experience. Ben Bernanke was effectively telling the public that gold was a barbaric relic.
Gold Investing: What is the “Barbarous Relic” Really Worth?
The Federal Reserve's gold was replaced by BS.
Zimbabwe all the way they say.
When people realize the fiat is backed by nothing it will be too late.
The USD is still backed by the full faith and credit of the US military. So, if you have something we want, you can accept our dollars voluntarily, or, you can be "made safe for democracy" involuntarily. Either way is fine with us & honestly, we prefer a nice mixture of both. Too few dollars, and the banksters get annoyed; too little "democracy", and the MIC gets annoyed.
Everything must GO
no reasonable offer will be refused
the only reason anyone gives you merchandise for a cloth/paper green printed note is because they too are indoctinated. My 8 year old grandson asked why a five dollar bill is worth more than four singles because it had to cost more to print 4 bills than one? I think he should run for governor or somthing. Out of the mouth of babes I guess.
we sold some barbarous relic
TPTB want you to believe that all that glitters is gold. It's not. Wonder how much gold is really at Ft. Knox?
Trade any of their shitty paper.
Gentlemen prefer bonds.
Tbonds.
Systematically sweep some profits into precious.
75/25 Silver/Gold.
Well no shit Sherlock. The Morgue sold the building with the tunnel that goes directly to the FED's gold vault to the Chinese.
Repatriation of gold is 'tradition'
Tradition and transitory, the Federal Reserve way.
I'm pretty sure it was Peter Pumpkinhead that took the gold.
Pretty sure.
"Peter Pumpkinhead came to town
Spreading wisdom and cash around
Fed the starving and housed the poor
Showed the Vatican what gold's for
But he made too many enemies
Of the people who would keep us on our knees
Hooray for Peter Pumpkin
Who'll pray for Peter Pumpkinhead?"
NY FED rejects behaving like children, looking for a solution.
Pere Ubu - Final Solution
The Fedral Resreve is an institution at the behest of the global elite! BAAÄ!
;>)
I lost my car keys at that show above ( Peabody's Downunder -Cleveland, OH), the band members found them on the stage in the corner. Too much stage diving that night.
for two+ years gold in euros has been very stable in the range between 900 and 1000
There is still the mystery of the German gold .......
Is the FED keeping this to cover potential losses from Deutsche Bank the world's number one in derivatives.
OR ......
Is it off-setting this gold against the 2008 bailout of Deutsche Bank.
For the rest of the world it is now apparent that Wall Street runs the US, so it is essential they get their gold back before Wall Street lays claim to it
OR it is used to cover Wall Street's losses in the next crash.
http://youtu.be/xxLWSLV9UAE
#QZ8501 found
Debris spotted on Tuesday during an aerial search for AirAsia flight QZ8501 is from the missing plane, Indonesia's director general of civil aviation told AFP.
Latest:
http://tersee.com/#!q=QZ8501&t=text
Harvey Organ: Germany Repatriates 44 Tonnes of Gold, Leaves Behind a HUGE MESS OF DERIVATIVES!
For what its worth.
If the Feds still have over 6000 tons of gold ..... it looks like the manipulation of the market has a long way to go yet before it disappears . My question is this : what is the yearly depletion rate in tons of that pile of gold ? How long will the manipulation last ? Will Chinese ,Russian ,Indian increased purchases of this " barbaric relic " increase the depletion rate ?
Russia crisis update:
1.) MONDAY - Bruce Willis' Favorite Russian Bank Is Getting A Bailout
On Monday, the Central Bank of Russia announced that it will be bailing out the first bank of the current ruble crisis, the private lender Trust Bank.
The central bank will provide 30 billion rubles — roughly $530 million — but did not officially say that Trust Bank's problems were linked to the ruble's plunge.
Read more: http://www.businessinsider.com/trust-bank-bailout-russia-currency-crisis-2014-12#ixzz3NNBQz02R2.) MONDAY - Russian government agrees to bail out Transaero Airlines Following a plea for help from Russia’s second largest carrier, the Russian government has pledged to support financially beleaguered Transaero Airlines. http://atwonline.com/daily-news/russian-government-agrees-bail-out-transaero-airlines
3.) TUESDAY - State to Give Russia's Sanctioned VTB Bank $1.7 Billion Capital Boost Russian Prime Minister Dmitry Medvedev has signed an order boosting the capital of the country's second-biggest bank VTB by 100 billion rubles ($1.7 billion), the government said on Tuesday.
http://www.themoscowtimes.com/article/513956.html
how is the weather in Tel Aviv?
The Ukes had 44 tons.
so they just need 100 or so more months at 40 tons a month to get the paper amount down closer to the actual amount
Just paper shuffling to cover their tracks. Show us the GOLD. Even Netherlands GOLD is simply vaporware. Unlike Venz. parade when they repatriated.
All that is in their vault is gold debt. Payment removes the debt. Their balance sheet is an accounting gimmick to make you think their gold debt is an asset. They never owned it. It is not there. When the Fed pays off their gold debt, it is with new gold they buy on the market.
Gold will find some support for a few weeks or months but will eventually continue its down trek once again...
http://www.globaldeflationnews.com/gold-elliott-wave-update-for-week-end...
The days of paper derivatives and paper gold are over. The chart in this article is nothing but a fabrication. The Fed does not have any gold in its vaults.
Let's get real. Lars Schall's interview of Chris Powell reveals "Fraudulence of whole western financial system." http://goldswitzerland.com/chris-powell-gata-there-are-no-free-markets-a...
Kevin Warsh, formerly on Federal Reserve Board, has also cited this "financial repression trap."
Chris Powell is pulling punches, and did not disclose that the network of global corporate control http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf owns the media and is trying to keep everyone from finding out their bankrupt, false fabrications.
The world is returning to gold currency, from the Global Debt Facility . https://s3.amazonaws.com/khudes/Twitter1.4.15.pdf
Link to my testimony (p186-7) and Elaine Conville's testimony (p 178) that the network of global corporate control is trying to suppress: http://www.parliament.uk/documents/commons-committees/public-administrat...