The Bankers' India Gold Grab: An Update

Tyler Durden's picture




 

Submitted by Jeff Nielsen via SprottMoney.com,

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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Sat, 01/09/2016 - 16:59 | 7023000 August
August's picture

Just go through Lloyd's and buy some insurance.

Sat, 01/09/2016 - 16:12 | 7022843 Omega_Man
Omega_Man's picture

They would sell the gold, presumably, that would drive the price down, thus they get less interest... or they would find another way to devalue it to pay less interest... Indians are not so great schemers compared to others..

Sat, 01/09/2016 - 16:13 | 7022848 iClaudius
iClaudius's picture

400 grams in Hindu translates to Fuck Off.

Sat, 01/09/2016 - 16:23 | 7022882 Joebloinvestor
Joebloinvestor's picture

They need to strip every banker of their gold first.

Sat, 01/09/2016 - 16:32 | 7022905 All is chosen
All is chosen's picture

Dammit Saul! We arrange for the goyim to pay for their own 'education', but they still listen to their parents!!! - What do we have to do?!!!!

Sat, 01/09/2016 - 16:40 | 7022927 besnook
besnook's picture

and they call this legitimate business rather than the con that it is to steal peoples' money. that gives it away as a zionazi plan. the indians have tried for a generation to extract the gold from the people under the direction of western banks to improve their current account.

good for the indians to resist another criminal, unethical, albeit legal, scheme.

Sat, 01/09/2016 - 17:25 | 7023102 silverer
silverer's picture

How not to enchance people's faith in government.

Sat, 01/09/2016 - 17:41 | 7023123 brooklinite8
brooklinite8's picture

Modi's gentrification has some side effects. It seems like gold will be one of them which is not acceptable. I am all for gentrification but this is crap. Modi can do better.

Sat, 01/09/2016 - 17:49 | 7023197 stopthejunk1
stopthejunk1's picture

The premise of the article is inane:

"Gold generates no income."

No, but lending it does... you retard. So if they take gold on deposit and make loans against it like banks usually do with their hard assets, then they can afford to pay interest to the depositors.

It's like a kindergarten class around here sometimes.

Sat, 01/09/2016 - 19:40 | 7023591 Vuke
Vuke's picture

Dear Lord, you're so stupid. 

Sat, 01/09/2016 - 18:47 | 7023269 Albertarocks
Albertarocks's picture

And the thieves have the gaul to perpetrate the myth that they are "the Illuminati".  The Indian peasants are clearly they enlightened ones. 

As one, united... they have all farted in the cartel's general direction and declared... "HOW DO YOU LIKE THEM APPLES!"

Sat, 01/09/2016 - 19:07 | 7023444 V for ...
V for ...'s picture

Indian Prime Minister Indira Gandhi was killed after her government stormed the Golden Temple of Amritsar, the holiest shrine of the Sikhs. All her dynastic power, wealth, Western backing and jewish support failed to save her from the consequences of her hubris.

Perhaps banksters think they can hide from the wrath if they steal Temple gold. Silly boys, and their hubris.

Sat, 01/09/2016 - 19:33 | 7023564 Bismarckrises
Bismarckrises's picture

India, they hate Monsanto with a passion. They are no fools and they know history very well.

Sat, 01/09/2016 - 19:56 | 7023651 Libertati Aut A...
Libertati Aut Ad Mortem's picture

Gold confiscation to increase the velocity of money didn't work in the 1930s in the US and it will not work now.  Indian can only be fixed with the implementation of aggressive use of imminent domain that is the pervue of corrupt local politicians.  A one child policy for a decade would not hurt.  China could accomplish much because it was an autocratic society, but even autocracy has limits to effectiveness not met by liberalized small business capitalism. 

Sat, 01/09/2016 - 21:33 | 7023920 Tom_Pain
Tom_Pain's picture

The Bankers' new mantra:

Om money payme now

Sat, 01/09/2016 - 21:34 | 7023923 Tom_Pain
Tom_Pain's picture

..

Sat, 01/09/2016 - 21:39 | 7023943 honestann
honestann's picture

Perhaps the temples should fashion some of their gold into swords and guillotines... and let those government thugs "have it"... good and fast.  They'll need some baskets.

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