The Bankers’ India Gold Grab: An Update

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The Bankers’ India Gold Grab: An Update

Written By Jeff Nielson (CLICK FOR ORIGINAL)

 

 

In previous commentaries, readers were warned that Western bankers were once again targeting the gold market of India with more of their fiendish plans. This time, they convinced (bribed?) India’s new, corrupt government – the Modi regime – into orchestrating a scheme to steal the gold from its own people.

The nexus of this scam was what was announced as “the gold deposit scheme.” Even the Conspirators themselves were unable to come up with a name to make this naked fraud sound legitimate. The fraud itself is simple, indeed utterly simplistic.

Indians “deposit” their gold into the clutches of their thieving government and are paid (paper) “interest” on those deposits. The fact that this was a naked fraud was immediately apparent. As the bankers tell us all the time, “gold generates no income.” How could India’s government pay the interest on the gold coins/bars/jewelry sitting in its vault supposedly held in trust for its depositors?

There was no immediate answer to that question because there could be no (legitimate) answer to the question. Indeed, in legitimate bullion storage arrangements, depositors pay a fee to have their bullion safely stored for them, because while the gold generates no income, the costs of storing such gold are significantly greater than zero.

Finally, reluctantly, the Conspirators made explicit what was already totally obvious:

The deposited gold will be auctioned off from time to time to meet domestic demand for jewellery and coins. [emphasis mine]

The scam was now completely exposed.

a) Indians “deposit” their gold.

b) Indians receive (paper) “interest” on their gold while their deposited gold is sold off.

c) Indians end up with the paper interest – and no gold.

 

d) India’s jewellers and coin-makers then sell the gold they purchased at these auctions back to the same Chumps who originally deposited that gold.

In the eyes of Western bankers, it was the perfect “scheme” – hence their label for the plan. In the eyes of any sane, rational, human being, it was/is the most naked, clumsy fraud that one could possibly imagine. But the corporate media assured us there was considerable enthusiasm amongst India’s population for this scam.

With enormous media and government fanfare, the “scheme” was officially launched at the beginning of November. However, these same media and government mouthpieces were much, much quieter a couple of weeks later when they released details on the initial response to this obvious fraud.

A gold deposit scheme launched amid fanfare by Indian Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grammes, an industry official said on Thursday, out of a national hoard estimated at 20,000 tonnes.

For those readers still less-than-comfortable with the metric system, let’s convert these numbers to the Imperial system of measurement. In two weeks, out of a population of more than one billion people, holding an estimated 40 million pounds of gold, the Conspirators only managed to net roughly one pound of gold from their intended victims.

Expressing these results in percentage terms, the Conspirators managed to steal less than 0.000002% of India’s privately held gold. At that rate, it would take India’s government (and the bankers) more than one million years to steal all of India’s gold.

The thieves were not daunted, at least not publicly. The media offered assorted excuses for the “slow” initial response to the scam. India’s government immediately added new inducements for the scam and pledged a “high-level meeting” to plot even more changes.

Last week, the government announced several steps to make the scheme more attractive for consumers, including measures such as eliminating capital gains and income taxes on the interest earned. The meeting on Tuesday is expected to focus on incentives for banks.

“Capital gains and income taxes”? Indians are having their gold stolen from them. They receive paper interest equal to a fraction of the value of that gold in return. And the media/government liars have the audacity to call this interest a “gain” or “income”? How magnanimous of India’s government to announce that it wouldn’t tax those “profits.”

With these new inducements in place, the Conspirators sat back and waited for the gold to start flowing into their vaults. Two weeks later, we got our next update:

The scheme has only attracted about one kilogramme [two pounds] in a month, prompting the government to nudge temples through banks to hand over their treasures 

First we get news that the thieves managed to net another, whole pound of gold during the second half of the month, and were still on-pace to steal all of India’s gold in 1,000,000+ years. Then the language (and imagery) descends to surreal comedy.

We’re now told that India’s government sees “temple gold” as its best/easiest target for stealing. But then we’re told that India’s government isn’t going to approach the temples directly, despite its boasts of what a “great opportunity” the gold-deposit scam represented. Instead, we’re told that India’s government plans on sending in bankers to “nudge” the temples to “hand over their treasures.” Why?

Once upon a time, those individuals who could liberate the most wealth from institutions in the least amount of time were known as “bank robbers.” But those days are ancient history. This is the 21 st century, or as the corporate media likes to call it, all the time, “the New Normal.”

In the New Normal, the world’s premier wealth liberators are no longer bank robbers but rather bank er robbers. These wealth liberators of the 21 st century make the bank robbers of the 19 th and 20th century appear as nothing but rank amateurs.

Observe. First a banker (and bank) is given custody of (someone else’s) financial assets in order to “manage” those assets. Then, a blink of an eye later, the bank/banker proudly proclaims that the bank now owns those assets. The bankers call this method of wealth liberation “a bail-in.”

However, in this case, India’s new government was not calling upon its friends, the bankers, to engage in any direct wealth liberation. Rather, they were being sent in to engage in persuasion. Presumably, the “bankers” assigned to that task had names like Butch and Knuckles, and instead of carrying briefcases, they were brandishing “implements of persuasion.”

A mere three days after India’s government sent in the bankers, the following announcement appeared:

Mumbai’s Siddhivinayak temple to deposit 40 kg of gold in monetization scheme

Here’s what is interesting about that announcement. First of all, the bankers had already invested many years of time and effort looking for some means to “gather” some of the thousands of tonnes of gold held by India’s temples – and failed. Meanwhile, just three days earlier, we had been told the following.

But Mumbai’s Shree Siddhivinayak temple, which is devoted to the Hindu elephant god Ganesha, said it remained unconvinced about the benefits.

What could have been said to (or done to) the leaders of this temple in order to get them to suddenly reverse themselves after years of resisting all efforts by the bankers to “gather” their gold? Only Butch and Knuckles can answer that question – but they probably won’t.

The strategy in strong-arming at least one of India’s temples out of a small portion of its gold is obvious. “Look!” hiss the bankers, “Your religious leaders are giving us their gold. That means that it must be a good idea.” Including the 40 kg of gold liberated from the Shree Siddhivinayak temple, this brings the total haul in the gold-deposit scam to 41 kg to date. Put in different terms, the total amount stolen has now risen from 0.000002% of the gold of India’s people all the way to 0.00008%.

Will the scheme by the One Bank and India’s government to steal some/most/all of the 20,000 tonnes of privately held gold in India be successful? If so, Butch and Knuckles will have to engage in a lot more persuading.

 

 

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The Bankers’ India Gold Grab: An Update

Written By Jeff Nielson (CLICK FOR ORIGINAL)


 

 

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Fri, 01/08/2016 - 09:37 | 7016601 Fishhawk
Fishhawk's picture

Well, since Indians have transcended all the weaknesses of the rest of humanity, and thus the motives of the Indian government are pure, I am reassured that this 'gold borrowing' arrangement will work out just fine for everyone.  I am truly surprised however that with Indian peasants holding about a third of the known gold on the planet, that Goldman Sucks has not shown at least some interest.  Since Goldman views the accumulation of gold as 'doing God's work,' no doubt they respect the Indian culture as being better at doing God's work, and thus only hope to learn from their betters, and not to influence the Indian government in the paths of corruption.  Thanks for giving us the benefit of your observations, from the scene as it were; we Westerners just assume that all humans are murdering, plundering psychotic scum.  It has given me great hope for mankind, learning that Indians are not psychopathic scum. 

Sat, 01/09/2016 - 02:11 | 7020795 Global Observer
Global Observer's picture

I am reassured that this 'gold borrowing' arrangement will work out just fine for everyone.

Of course, it won't work fine for everyone, only for everyone in India. The Western filth accumulating gold thinking the demand in India will make them rich will be left high and dry when India temporarily stops importing gold and later when their own governments confiscate their physical gold (not borrow like the Indian government) in order to pay for their imports when their own currencies are no longer good to pay for their imports in excess of their exports.

 I am truly surprised however that with Indian peasants holding about a third of the known gold on the planet, that Goldman Sucks has not shown at least some interest. Since Goldman views the accumulation of gold as 'doing God's work,' no doubt they respect the Indian culture as being better at doing God's work, and thus only hope to learn from their betters, and not to influence the Indian government in the paths of corruption.

Who cares what Goldman Sachs is interested in? Unlike the scum that Western governments are, the Indian government is not beholden to Goldman Sachs or any other banks.

we Westerners just assume that all humans are murdering, plundering psychotic scum.

Of course you do. That is why you need to find someone like bankers to blame your disgusting murdering, plundering existence on. While the reality is that everyone in the West is just the same murdering, plundering psychopthic filth. The bankers just happen to be the successful ones.

Fri, 01/08/2016 - 03:48 | 7015783 max29
max29's picture

 

 

Massive to ask for your Gold to be stored in any depot

If a Goverment 'needs' Gold they go there first

Slavemason Fr Roosevelt 1933  mentioned because of his confiscation of Gold and Silver Eagles.

FDR’Bailout of the Federal Reserve Bank. by Daniel Carr, ... At the same time, Roosevelt admits that US Government...............

The Law is-how should I Put it A Convenience. A convenience to some people and a inconvenience to most of the people.  Paul.

History Never repeats itself of course.... The Fed is totally different now.......Bail outs not needed since 1933  ....how convenient.

No the same old Fed with the same old (slick jewish) personal and have probably allready set up depots to prepare and enhance.

Go from Decentralized -at/with individuals - to Centralize : Depots and Fed storage itself (Fort Knox)London a.o.

 

Thu, 01/07/2016 - 15:41 | 7012997 Fishhawk
Fishhawk's picture

For claiming to be a Global Observer, you are not very observant.  You say the government is attempting this gold grab, not the banks, as if there were any difference between them, or that both are not controlled by Goldman Sucks.  What would be the purpose of letting the banks hold the peasant's gold (and pay them interest, in gold, on such accounts?), if it were not to leave the peasants holding paper when the balloon goes up?  Seems somehow similar to what FDR did.  I have observed that governments, much less the banks, have never done anything to benefit the peasants, whom they pretty openly despise.  So I presume that there is a larcenous motive behind the Indian government/bank cartel scheme to seize the gold and leave the peasants worthless paper.  That strategy is working well in the US, where any and all money even considering investing in gold is persuaded to gamble in paper gold instead.  Somehow the Indian government must convince the peasants that they should give up their reverence for God's money and start viewing it as merely a commodity whose highly variable monetary value can be used as a gambling vehicle.  Because gold is real money, and the banking cartel cannot defraud the holders of gold if they will not put it at risk in hopes of unearned gains.  You can't cheat an honest man.  Thus the Indian government will have to steal it in a more direct manner, or adjust the scheme to offer larger purported profits to entice more suckers to take the bait.  I see some false flag emergencies due to arrive soon in that part of the world...

As to your truly amazing observation that "such stealing can only be done once" I would have to note that stealing several generations worth of accumulated wealth 'only once' would be sufficient for all practical purposes.  There would be no reason to rob them again, or at least not for several generations.

Fri, 01/08/2016 - 05:00 | 7015886 Global Observer
Global Observer's picture

You say the government is attempting this gold grab, not the banks, as if there were any difference between them, or that both are not controlled by Goldman Sucks. 

First off, I did not say the Government of India is attempting a gold "grab" or any equivalent, the moron who wrote this article did.

Second, neither the Government of India nor the banks in India are controlled by Goldman Sachs.

There are many countries in the world where the governments work in the interests of their people and India is one of them. I know it comes as a shock to many Westerners, who think just because they are too stupid to resist being controlled by their banks, everyone else in the world too is, but not everyone in the world is braindead or a psychopath like Westerners are.

What would be the purpose of letting the banks hold the peasant's gold (and pay them interest, in gold, on such accounts?), if it were not to leave the peasants holding paper when the balloon goes up? 

I addressed that moronic assumption in my previous post. What is the problem, can't comprehend English? No one depositing the gold will lose it. Every milligramme of it will be returned upon maturity or when the investor wants it back, whichever is earlier. India will import gold when these deposits start maturing.

Seems somehow similar to what FDR did. 

Sure, for everyone lacking a functioning brain, it does appear similar. Indian government is not making it illegal for Indians to hold gold, like FDR did. It merely is giving an incentive to the people to loan gold to the government.

In fact, at the moment it is not even easy to join the scheme as the number of centres where people can deposit their physical gold, which will be tested for purity and then melted and accepted for deposit is extremely small. A large number of Indians are waiting for the Bureau of Indian Standards to approve more centres so that they don't have to travel hundreds of kilometres to take advantage of the scheme. While the government wants to retain the option of borrowing from small gold holders (and hence a minimum of 30 grammes deposit being accepted), it is no hurry to exercise that option right away. First it wants to mobilise gold from large holders of idle gold like temples and ETFs and if the amount mobilised from these sources does not meet the estimated requirement for the period during which they do not want to import any gold, only then make it easy for small holders of gold to take advantage of the scheme. That is because larger holders of gold have a much better idea of when they would need the physical gold back than small holders and that allows the government to plan their gold imports accordingly. Small holders, on the other hand, can be expected to have less control on their needs for physical gold and some percentage of them can be expected to want to reclaim their deposits before maturity thus making the gold import needs more unpredictable.

Thus the Indian government will have to steal it in a more direct manner...

Each country's government is a reflection of the people. Western governments are scum because Westerners are murdering, plundering psychopthic scum. India has no such problem.

Thu, 01/07/2016 - 13:19 | 7012156 Global Observer
Global Observer's picture

The gold monetisation scheme was launched by the government of India (not banks) to temporarily meet the domestic gold jewellery demand by recycling gold lying unused as old jewellery, bullion or unused temple gold. It is not uncommon for Indians to make donations to the temples/offerings to the deities in the form gold jewellery, but this jewellery is never used and sits in the temples' vaults until once in a few decades the temple trusts decide to take this gold and make new ornaments to adorn the idols with for ceremonial occassions. In the event the temples have large collection of such unused gold, they are required to keep them safely away in bank lockers. It is that gold that is intended to be mobilised for this purpose and not the gold that is in the form of regularly used adornments of deities or those of historial or traditional importance.

The obvious question is how does the Government of India plan to return this gold to depositors on maturity? The answer is: by importing gold on that day.

The scheme is to allow India to meet its domestic gold demand for a few years without importing any.

What exactly is the point in stopping gold imports for a few years if all the  gold that India would have imported in these few years and more needs to be imported in the near future? The answer is simple, but not obvious.

There is going to be a change in international payment system from fiat currencies to a gold backed currency to be issued by the New Development Bank. Every country having a seat at the table of the bank needs to justify its position by defending its currency against gold as the price of gold skyrockets in US$ terms. As net exporting countries with huge foreign exchange reserves, Russia and China amassed enough gold to meet their respective domestic demands for gold and can easily ensure the price of gold in their own currencies remains stable even as it shoots through the sky in US$ terms. Brasil and South Africa are net exporters of gold and can easily defend their currencies against gold by banning/curtailing gold exports and retaining it to meet domestic demand. India alone is in the unenviable position of being net importer of goods and services, huge internal demand for gold and zero local gold production. Unless India can mobilise a store of gold that can meet the internal demand for gold for sometime, it will be impossible for India to defend its currency against gold. However, once the system is firmly in place, India will be able to resume gold imports without its currency being impacted. It is for this purpose that the Indian government has instituted thse gold schemes.

Only morons would think the government of India is "stealing" gold to auction off to jewellers who would sell the jewellery back to the same people from who the gold was "stolen". Why would the government of India do such a stupid thing? Why not simply allow gold to be imported by the jewellers, especially since such "stealing" can be done only once?

Thu, 01/07/2016 - 18:13 | 7014052 metanoic
metanoic's picture

"There is going to be a change in international payment system from fiat currencies to a gold backed currency to be issued by the New Development Bank."

 

Yuan becomes reserve currency October 2016. When do you think the change over happens ?

Fri, 01/08/2016 - 02:04 | 7015770 Global Observer
Global Observer's picture

Yuan becomes reserve currency October 2016. When do you think the change over happens ?

Yuan doesn't become reserve currency, it only will enter the IMF basket of currencies i.e. a currency that can be used for repaying IMF loans in or withdrawing IMF loans in. That event is of little significance and is simply a recognition by the IMF that countries are already widely using the Yuan to settle their trades in.

The change that I talk of is a gold backed currency to be issued by the New Development Bank to replace all fiat currencies, including the Yuan, in international payment settlements. I expect it to happen before the end of 2017, but likely late this year.

Thu, 01/07/2016 - 13:13 | 7012115 Mr. Cynic
Mr. Cynic's picture

Things that make you go Hmmm.

Thu, 01/07/2016 - 11:00 | 7011074 Fishhawk
Fishhawk's picture

All of you gold bugs here at ZH ought to consider the prospect that if gold is allowed to rise to even a moderate fraction of its 'true' value (relative to all the unbacked fiat that has been created out of nothing), and where such 'true' value would then be in the $5k area, then the peons of India would own about one third of the world's assets.  Obviously such 'the last shall be first,' 'the meek shall inherit the earth,' prospects would not sit well with the One Bank.  Thus some form of theft will be needed to remove the gold from the Indian people before the banksters can perform the great fiat reset (ie, declare all fiat at its true value - zero, and reset the price of gold at $5k).  Thus the gold bugs here in the USSA should be watching and hoping the banksters can come up with some kind of scheme (even if it is obviously a fraud) that succeeds in tricking the Indian peasants into giving up their gold.  The Indians should probably also hope they can be defrauded through deception and trickery, as the alternative is for Langley to incite a nuclear war between India and Pakistan.  The groundwork for such an escalation is already being put into place, in case the bankster schemes have failed to capture most of the 20,000 tons of gold now held in India (but not by the One Bank), before the scheduled reset.

Thu, 01/07/2016 - 12:40 | 7011835 Mercuryquicksilver
Mercuryquicksilver's picture

If banksters come up with a "scheme" to confiscate 20,000 tons of Indian "peasant" gold, then I'd be more worried about those same banksters stealing my own stash.... if I had any gold. I don't, so don't come looking.

Thu, 01/07/2016 - 10:02 | 7010715 Hope Copy
Hope Copy's picture

Same thing can happen here.. read Frank Dodd.  I hope that the US will let the depositer decide where to 'invest' their gold, as it will be needed to secure international trades, but will dissapear with the trade deficit.  Best option is to hold gold in old coin at this point (there is quite a premium) and holds it at home.  This still leaves the government option to actually steal it so that those old coins hit the gold dealers, as such will be realitively untraceable.

This still leaves old gold as becoming an underground currency.

Thu, 01/07/2016 - 09:57 | 7010652 RaceToTheBottom
RaceToTheBottom's picture

Fractional Reserve Gold.

At 200 paper units per one physical unit, the paper tail wagging the physical dog can continue for many more years, until it can't.

I can't see this working with Indians, but if it does, someone is not thinking right.

Thu, 01/07/2016 - 09:27 | 7010468 nathan1234
nathan1234's picture

And not to forget mention of the gold swap he has already done with India's Gold Reserves!

Why do you think Raghuram Rajan has been made Vice Chairman of BIS?

This gold deposit scheme also has his imprint.

 

Thu, 01/07/2016 - 09:06 | 7010354 bookofenoch
bookofenoch's picture

If this doesn't stink of desperation, I can't imagine what does.

Thu, 01/07/2016 - 10:35 | 7010926 hendrik1730
hendrik1730's picture

I do. Belgian state affairs.

Thu, 01/07/2016 - 09:07 | 7010334 perkunas
perkunas's picture

What may come out of this, is some sort of new model. Where you may only sell your gold to the government.

Much like cypres steals your bank account, then the world makes it law.

 

Thu, 01/07/2016 - 08:45 | 7010251 JohnGaltsChild
JohnGaltsChild's picture

I will gladly pay you Tuesday for a hamburger today.

Thu, 01/07/2016 - 10:19 | 7010831 RaceToTheBottom
RaceToTheBottom's picture

I will gladly pay you Tuesday for a hamburger today, so I can create 200 hamburgers out of one.

Modern Finance.


Thu, 01/07/2016 - 18:11 | 7014033 JohnGaltsChild
JohnGaltsChild's picture

Alright! Fractional frying.

Thu, 01/07/2016 - 08:33 | 7010213 bhagva
bhagva's picture

God's r much easier to convinced than Indian ladies ....

Thu, 01/07/2016 - 08:22 | 7010144 cwsuisse
cwsuisse's picture

Modi is crazy!

Thu, 01/07/2016 - 07:58 | 7010029 lakecity55
lakecity55's picture

Ganesha should be able to chase off the evil banksters.

Thu, 01/07/2016 - 07:46 | 7009968 paint it red ca...
paint it red call it hell's picture

My guess is India is still a colony of the city of london through owned politicians and institutions. If correct, no need to point out the implications.

Thu, 01/07/2016 - 08:57 | 7010304 HenryHall
HenryHall's picture

Not exactly. India isn't owned by London.

But London and India are both owned by the same people.

Thu, 01/07/2016 - 09:58 | 7010682 GRDguy
GRDguy's picture

If you study financial history, instead of government-sponsored fairy tales, you'll see that the U.S. never won a financial war.  Every time a war was over, the financial centers were back borrowing from agents of the City of London Corporation.  This goes all the way back to the 1600s.  Even Barclays brags about being created in 1690.  This is what the 1889 author calls The Great Red Dragon, a group of Snakes In Suits, whose off-springs are still being fed to this day.  No wonder its size is "great" and the destruction it causes is "red" blood. Hence, the symbolism in its name.

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