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Name The New Reserve Currency: China Imports More Gold In 2012 Than All ECB Holdings

Tyler Durden's picture


The last time we looked at monthly Chinese imports of gold from Hong Kong in 2012, the comparable country in question was Portugal (whose citizens, if not central bank, incidentally have run out of gold to sell), because that is whose total gold holdings (at 382.5 tons) Chinese imports had just surpassed. Fast forward a month later, and the update is even more disturbing. In July, Chinese gold imports from HK, after two months of declines, have picked up once more and hit a 3-month high of 75.8 tons. While it is notable that this number is double the 38.1 tons imported a year prior, and that year-to-date imports are now a record 458.6 tons, well over four times greater than the seven month total in 2011 which was 103.9 tons, what is far more important is that in the first seven months of 2012 alone China has imported nearly as much gold as the total holdings of the hedge fund at the heart of the Eurozone, elsewhere known simply as the European Central Bank, and just as importantly considering the import run-rate has hardly slowed down in August, which data we will have in a few weeks, it is now safe to say that in 2012 alone China has imported more gold than the ECB's entire official 502.1 tons of holdings.

What is most amusing is that China, via the IMF, still wants the world to believe that total Chinese official holdings are just 1040 tons (double the ECB's), when it has imported half this amount in 2012 alone.

As a reminder, the last time China gave an update of its official gold holdings was in April for 2009. This means China has been aggressively hoarding gold for the past three and a half years without issuing an official peep about where its inventory stands now.

Luckily, those who keep track of the newsflow have some idea.

As an even more important reminder, in December 2009, the China Youth Daily quoted State Council advisor Ji as saying that a team of experts from Beijing and Shanghai have set up a "task force" last year to consider growing China's gold reserves. "We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the paper quoted him. Has China managed to accumulated 6,000 tons yet? We won't know for sure until the official disclosure which will come when China is ready and not a moment earlier, but at the current run-rate of accumulation which is just shy of 1,000 tons per year, it is certainly within the realm of possibilities that China is now the second largest holder of gold in the world, surpassing Germany's 3,395 tons and second only to the US.

Going back to the "important things", here is another one: in all of 2012, according to Treasury International Capital flow data, China has increased its Treasury holdings from $1,151.9 billion as of December 31, 2011 to just $1164.3 billion: a total increase of just $12.4 billion in 6 months: the slowest run-rate since China started to recycle in budget surplus into US paper.

Whether this dramatic slowdown (and no, China is no longer rerouting purchases via the UK whose holdings have, unlike prior years, hardly budged in 2012) is due to a plunge in the Chinese trade surplus due to the ever more obvious Chinese hard landing, and the lack of recyclable dollars, is unknown and largely irrelevant. What is known, and what is relevant, is that at Friday's closing price 458.6 tons of gold translates into over $25 billion worth of gold imports.

For the first time in history China has imported twice as much gold as it has "imported" US Treasurys.

But most importantly, and perhaps tying it all together, is what the deputy director of the Chinese central bank, the PBOC, said overnight at a conference in Xiamen. What he said is that the financial crisis has shaken confidence in the U.S. dollar. We knew that. What he added is that
the sound performance of China’s economy during the crisis boosted demand for yuan. This was also more or less known, although with the Yuan peg it is somewhat difficult to determine objectively. It is what he said last that is most important: "The financial crisis that started in 2008 has provided China with a good opportunity to promote the yuan as a global currency."

A global currency that is now backed by the second largest hoard of gold in the world, and targeting to be over 10,000 tons in a few years, and is supported by the fastest growing "developing" economy in the world, $14 trillion in deposits rising at an exponential pace, and well over one billion in population.

Can anyone guess which currency is next in line of succession:


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Sat, 09/08/2012 - 08:59 | 2774282 BigJim
BigJim's picture

Annual production is, what, 2600 tonnes or thereabouts?

So I don't see how the quantities discussed here are particularly spectacular.

Sat, 09/08/2012 - 09:02 | 2774291 Tyler Durden
Tyler Durden's picture

Because Chinese imports via HK are just one transmission channel, one which btw we know about only because HK keeps track of the data. There is no comparable data series on the mainland. China knows this. The question is not what China is doing: everyone knows they are hoarding gold. The question is what China is telegraphing.

Sat, 09/08/2012 - 09:13 | 2774305 BigJim
BigJim's picture

LOL, that'll teach me to comment before I've fully absorbed the contents of the article :-/

Sat, 09/08/2012 - 09:16 | 2774312 Comay Mierda
Comay Mierda's picture

Holy Tungsten!

Sat, 09/08/2012 - 09:19 | 2774316 GetZeeGold
GetZeeGold's picture



Just buy dore under the radar.


....hold the tungsten.


Sat, 09/08/2012 - 10:42 | 2774436 Pladizow
Pladizow's picture

Tylers & BigJim:

You also forgot to subtract the gold that is mined within both Russia & China from the 2600 tonnes, which never makes it to the international market.

So remove from the 2600 tonnes another 400-500 tonnes, so globally available mined gold is closer to 2000 tonnes.

Now you will see that just from the Chineese published numbers, every month they are importing nearly half of the available global mine supply.

Why China is buying gold? -

Sat, 09/08/2012 - 11:25 | 2774546 DoChenRollingBearing
DoChenRollingBearing's picture

ZERO HEDGE recently published an article on how Italians are turning in their gold because they have no "money".  This story is TRUE!  I have taken pictures and have committed a "random act of journalism" all of which I will put up at my blog later.  As I have no safe computer nor flash drive, the details will have to wait until our return, but you can see a short comment below:

Sat, 09/08/2012 - 12:02 | 2774586 BaBaBouy
BaBaBouy's picture

Well, the evidence is beginning to roll in slowly.

Like Keep Saying, the Chinee, the Indians Russians etc know whats happening.

They are Constantly Adding to their physical GOLD reserves.

I suspect they are buying up all Physical GOLD available,

just up to the point where the prices would begin to soar.

Meanwhile, Physica/Digital/Virtual Fiats will continue to PRINT and  ROT.


Remember, it takes a computer keystroke to multiply $1 Trillion to $100 Trillion,

Try That with Physical GOLD...


The Train is Rolling... Eventual GOLD $50K...

Sat, 09/08/2012 - 13:22 | 2774688 hedgeless_horseman
hedgeless_horseman's picture



China's Gold River, the Yangtze, is running in the red...


We humans are such poor stewards of our living space.  

This afternoon...  

I am going to go on a two hour trail run.

I am going to take my wife.

I am going to listen to her breath and footfalls, not some iGadget.

I am going to watch her arms swing and legs stride.

I am going to see all of one structure and two dirt roads.

I am going to wear the huaraches I made myself, not some Nikes made in China.

I am going to drink clean water from my own well on my own property.

I am going to thank God for all of this and for the small fact that I do not look out my window at a blood red river.

Sat, 09/08/2012 - 13:52 | 2774850 q99x2
q99x2's picture

The rivers have turned to blood. Repent the end is near.

Sat, 09/08/2012 - 18:45 | 2775249 strannick
strannick's picture

Hilariously, the top three gold holders, US, Germany, IMF, are probably all the same gold, ie. German and IMF gold in the US. This gold meanwhile is unaudited, leased and otherwise gone.

Sat, 09/08/2012 - 13:57 | 2774857 bob_dabolina
bob_dabolina's picture

Eh, looks more like carrot juice to me.

Sat, 09/08/2012 - 18:31 | 2775229 Hulk
Hulk's picture

We are a rapacious, short sighted species HH. very sad to see this thing, even if its simply red clay runoff from poor construction or bad farming techniques...

Sat, 09/08/2012 - 22:43 | 2775509 Real Estate Geek
Real Estate Geek's picture

Not to minimize China's environmental catastrophes, but the red is a bad photoshop job.  Check out the pictures in the Daily Mail.  In the one where one guy's holding up a bottle of red water, the other guy's arm is photoshopped red.

Sun, 09/09/2012 - 07:26 | 2775875 Short Memories
Short Memories's picture

Hope your well on your property is not near any LNG fracking ;)

Sun, 09/09/2012 - 23:11 | 2777420 matrix2012
matrix2012's picture

Few years ago the redness was also captured at the shore of Bohai Sea in Panjin city, southwest of Liaoning


Sun, 09/09/2012 - 23:34 | 2777468 matrix2012
matrix2012's picture

Daily Mail even loads more and clearer pictures here:

-good editing job DM


The funny thing, depending on where one reads the news, it has its own interpretation. LoL 

Sat, 09/08/2012 - 09:32 | 2774320 falak pema
falak pema's picture

do they have a better telegraphing signal than the old Apache smoke columns? 

I wonder if the west understands their smoke and mirrors? 

On this issue of reserve currency status I think the energy thread and the money thread are now distending fast. Two vital ingredients of PAx Americana hegemony.

And this is problematic for the USD. If, as ZH has pointed out, the operation twist is now showing a cumulative 70%+ UST are owned by FED, its ability to QE bigtime (1Trillion outlay of monetisation) is hampered. As is further operation twist's ability to substitute ST bonds for LT bond purchases.

If on top of this, the marginal cost of new oil is 90 USD+, then the oil monarchies may become more and more reluctant to buy UST as reserve monopoly currency. Which means the market for UST will narrow even further...No China, no Petromonarchies...what does BEn Do???

How does he levitate WS stocks for his paymasters?

Sat, 09/08/2012 - 10:04 | 2774373 moonstears
moonstears's picture

falak, interesting point, that the dollar has no master but the USFedGov, cannot twist just absorb 95% of the UST paper, 100% if need be? You're gonna say it's not right, but the point is not SHOULD they, but COULD they. Yes, methinks, Sir.

Sat, 09/08/2012 - 10:10 | 2774386 falak pema
falak pema's picture

If you hit the 100% asymptote you lose all credibility. The Emperor is so naked that even the kiddie says : wow! I can see his pee pee! 

Seriously, those ZH graphics showed us that in 2003 the private sector owned 80% of UST; and look at it now!

Sat, 09/08/2012 - 10:55 | 2774467 centerline
centerline's picture

Easy to see who the bagholders are.  This is why the Fed was built to be dismantled.  Neat trick huh?

Kind of like me moving in with you, getting power of attorney, maxing out all your credit cards (benefits of the purchases going elsewhere), and then you get angry and kick me out.

Sat, 09/08/2012 - 12:01 | 2774618 falak pema
falak pema's picture

...FED built to be dismantled....

I don't think so. It'll take a hard man to dismantle the FED!

Fed goes, usd reserve status goes, US economy tanks as the floor planks cave in. Below its dire fall to foggy bottom. 

You don't want even to consider that scenario when you are US oligarch, playing your harp while Rome's poor burn.

Fire in my palace? Never! 

The FED shareholders are the scions of oligarchy rule as they control the money line of USA Big Corp. Inc.

They own globalisation. 

Sat, 09/08/2012 - 12:49 | 2774678 centerline
centerline's picture

I disagree.  They are too public.  That is just the front.  The power behind the scenes owes no alligiance to any country.  The dismantling of the Fed is the mechanism by which the ensuing currency disaster will be blamed on the politicians and people.

The US has been getting slowly dismantled for decades.  It is Rome, rotting from within.  Palaces get moved.

Can you hear the cries for "end the Fed!" getting louder.  That is ironically both right and wrong playing out.  It is  anticipated in my opinion.

Sat, 09/08/2012 - 17:01 | 2775124 Bring the Gold
Bring the Gold's picture

Absolutely spot on. The real power has been at the BIS for 90+ years and even THAT is a front for private parties. I've long said Goldman, JPM and even the FED can all be sacrificed on the altar of public perception if it means ushering in the NWO one world currency.

Even if you don't like Ellen Brown there are "acceptable to the businessman" sources out there that actually show that the BIS runs the show.

Sat, 09/08/2012 - 18:49 | 2775253 4horse
4horse's picture

BtG. yes. The BIS

their WorldWide instrument


great post: And that is where the conspiracy theorists come in. Why did the BIS not retract or at least modify Basel II after seeing the devastation it had caused? Why did it sit idly by as the global economy came crashing down? Was the goal to create so much economic havoc that the world would rush with relief into the waiting arms of the BIS with its privately-created global currency?


Cry Havoc! and let slip . . .





Mon, 09/10/2012 - 05:28 | 2777792 matrix2012
matrix2012's picture

"...Even if you don't like Ellen Brown"


Just try to read following book: "The Global Economic Crisis: The Great Depression of the XXI Century", Michel Chossudovsky and Andrew Gavin Marshall (Editors)


I believe this is a GREAT BOOK to help one understand the world's affairs & problems from the holistic view, not only the current ones but perhaps of the last one or two centuries!


Preface Michel Chossudovsky and Andrew Gavin Marshall




Chapter 1 The Global Economic Crisis: An Overview Michel Chossudovsky

Chapter 2 Death of the American Empire Tanya Cariina Hsu

Chapter 3 Financial Implosion and Economic Stagnation John Bellamy Foster and Fred Magdoff

Chapter 4 Depression: The Crisis of Capitalism James Petras

Chapter 5 Globalization and Neoliberalism: Is there an Alternative to Plundering the Earth? Claudia von Werlhof

Chapter 6 The Economy’s Search for a “New Normal” Shamus Cooke



Chapter 7 Global Poverty and the Economic Crisis Michel Chossudovsky

Chapter 8 Poverty and Social Inequality Peter Phillips



Chapter 9 War and the Economic Crisis Michel Chossudovsky

Chapter 10 The "Dollar Glut" Finances America's Global Military Build-Up Michael Hudson

Chapter 11 Martial Law, the Financial Bailout and War Peter Dale Scott

Chapter 12 Pentagon and Intelligence Black Budget Operations Tom Burghardt

Chapter 13 The Economic Crisis “Threatens National Security” in America Bill Van Auken

Chapter 14 The Political Economy of World Government Andrew Gavin Marshall



Chapter 15 Central Banking: Managing the Global Political Economy Andrew Gavin Marshall

Chapter 16 The Towers of Basel: Secretive Plan to Create a Global Central Bank Ellen Brown

Chapter 17 The Financial New World Order: Towards A Global Currency Andrew Gavin Marshall

Chapter 18 Democratizing the Monetary System Richard C. Cook



Chapter 19 Wall Street’s Ponzi Scheme Ellen Brown,

Chapter 20 Securitization: The Biggest Rip-off Ever Mike Whitney





And remember about EUSTACE MULLINS too.

He's the author of many great books, among others: “The Secrets of the Federal Reserve” (1952), "Secrets of the Federal Reserve: The London Connection" (1993); "The World Order, A Study in the Hegemony of Parasitism" (1985); "The Great Betrayal: The General Welfare Clause of the Constitution" (1991) and many others!


Or, "The Creature from Jekyll Island, 5th Edition" (2010) by G. Edward Griffin

Unfiltered News - Current | Compiled by G. Edward Griffin And another work of Ellen Brown Web of Debt - How Banks And The Federal Reserve Are Bankrupting The Planet... EXPLODING THE MYTHS ABOUT MONEY By Ellen Hodgson Brown Our money system is not what we have been led to believe. The creation of money has been "privatized," or taken over by private money lenders. Thomas Jefferson called them “bold and bankrupt adventurers just pretending to have money.” Except for coins, all of our money is now created as loans advanced by private banking institutions — including the privately-owned Federal Reserve. Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out, expanding the money supply, inflating prices — and robbing you of the value of your money.


Sun, 09/09/2012 - 03:10 | 2775744 matrix2012
matrix2012's picture

few handy links to uphold some bold statements here:

"They own globalisation"

   "BIS = Bank of International Settlements" --> the Central Bank of Central Banks

            ==> the Worldwide Instruments


-Gary Allen's classic book "None Dare Call It Conspiracy" and other valuable refs -

-Andrew Hitchcock's masterpiece of the World 2.5-Century Timeline, "The History of the House..." - or its terser .ppt version:

-Amanita's "Bilderberg Conference 2010: watch out!" -

-A Super Chart that will give you some good ideas on how the world is managed, how far the their power reaches to individuals, institutions, corporations, mass media, broadcasts -

Or a 'more scientific' though much shallower chart, "Who Runs the World" -

-Dr. Carroll Quigley’s book: "Tragedy and Hope: A History of the World In Our Time" -

-W. Cleon Skousen's "The Naked Capitalist", a companion guideline to above Quigley’s work -

Skousen’s book is highly recommended because it helps one understand the more salient issues Quigley has documented and puts Quigley’s monstrosity in perspective. Skousen helps the reader to comprehend what Quigley has written and discern Quigley’s biases.



Sun, 09/09/2012 - 01:48 | 2775738 matrix2012
matrix2012's picture

falak pema or anyone else, can you pinpoint me to the ZH link showing us that in 2003 the private sector owned 80% of UST? thanks


at FP, 

+100 worthy analysis!

Sun, 09/09/2012 - 12:46 | 2776266 Sean7k
Mon, 09/10/2012 - 06:10 | 2777658 matrix2012
matrix2012's picture

   falak perma: "Seriously, those ZH graphics showed us that in 2003 the private sector owned 80% of UST; and look at it now!"


some interesting reading with regard to above statement:


Fed Trapped By Its Long-Duration Portfolio

Russ Winter, 2012-08-16­-by-its-long-dur...

"The Fed has to at least maintain the facade of being able to respond to market conditions and, if necessary, sell securities (called reverse repos) from its portfolio [Author's CORRECTION:  I have a correction to the piece. In the first sentence I feel the Fed will need to sell securities in permanent operations, not just reverse repos. RR will be inadequate.] The Fed currently has virtually no short-term holdings that it could simply allow to mature without rolling over. It would have to dig into its long-duration portfolio. If rates had been pushed higher in a credit or inflation revulsion, they could face serious losses."

"If you bought a 10-year "risk off" Treasury two weeks ago at 1.4% yield, you would not only have to wait 18 years to hit your retirement target, but you would have lost 6 1/2% in principle in just two weeks. That's four years of coupons. Retirement age in America is now moved to four years after death. The following chart shows the savings rates necessary to reach retirement target under Bernanke's Zero Interest Rate Policy regime."


"A time lapse chart showing Fed taking over bond market. It is hard for me to envision that the Fed owns much of anything in the way of "bargains" since almost everything was bought during the last three years of low coupons. Does this seem like a well functioning system (sistema)? They are trapped."

Fed vs. Private Sector Treasury Holdings



Sat, 09/08/2012 - 10:17 | 2774393 Bobbyrib
Bobbyrib's picture

After reading the entire article, I am convinced that the US government will institute a gold confiscation scheme for "the betterment of the country as a whole." Seeing China import the amount of gold at the rate it has, leads me to believe that to be "competitve"the US government will want to increase its gold holdings. What better way to do it then to rob your citizens of their property while giving them "market value?" That is how Ben could compete with the Chinese to make sure the US continues to receive oil.

Sat, 09/08/2012 - 11:08 | 2774509 lasvegaspersona
lasvegaspersona's picture

Confiscation was done when gold was still actual official money. In our current situation there is not a lot of it in easy to get hands.

It will work out OK for the USG to just have gold flowing in its zone. That is what China seems to be doing by encouraging its people to hold gold.

Aside from the tons in GLD which is easy to get where would they get more? Everyone I know buys but then gambles it away or carelessly looses it.

Sat, 09/08/2012 - 12:18 | 2774664 Bobbyrib
Bobbyrib's picture

Thanks to certain legislation that has been passed and electronic transactions, I suspect the government knows of thousands of people who own PM's.

Sat, 09/08/2012 - 17:04 | 2775128 Bring the Gold
Bring the Gold's picture

There is always the possibility of confiscation. Gold, food, guns, land, people of interest sent to camps. This has always been a possibility since the begining of time. Look for ETF's and large gold storage units to be looted first then you can get worried. In the meantime enjoy the freedom we do have and love your family/friends and enjoy whats left of the way things were. Things are changing rapidly and it will be coming to a town near you soon enough. Prep if that's your deal, but make sure you spend time enjoying life too. What's the point of prepping and agonizing all the time if you can't love life now and then?

Sat, 09/08/2012 - 13:03 | 2774767 Midas
Midas's picture

I guess they could start with Mr. T.

Tue, 09/11/2012 - 01:02 | 2780837 matrix2012
matrix2012's picture

who's your Mr. T here, Midas? LoL

Sat, 09/08/2012 - 22:27 | 2775489 greggh99
greggh99's picture

"What better way to do it then to rob your citizens of their property"

Nationalizing the mines is a much better, more effective, and easier way, than raiding everyone's safe deposit boxes. As if anyone in the US has physical gold anymore in the first place.

Sat, 09/08/2012 - 10:36 | 2774430 HedgeHammer
HedgeHammer's picture

Medicine Man here at Navajo Indian Reservation with BREAKING NEWS REPORT.


TP vandalism on rise...

Local Casino robbed again late last night. Report says a masked white man accompanied by an engine held up the place by gun point. Last seen riding off into the sunset on horseback one pure White Stallion and one Palameno. Also this just in, reports are coming in about the two strangers as they where leaving the Casino people could here one of the thieves say, as they rode off into the sunset, Hi Oh SILVER AWAAAAAAAAY.

We believe the two bandits are working with the PBOC in an effort to secretly increase their gold holdings.

Major unprecedented financial storm coming to a country near you.

Buffalo, Corn, and Flour prices are on the rise with no relief in site.

The Sovereign Indian Nation says no to Bernake's request that we purchase US Bonds...

That conclude our breaking news report Live at Five.  MORE SMOKE AT ELEVEN.

Sat, 09/08/2012 - 11:06 | 2774498 Marco
Marco's picture

I don't understand why people blame Bernanke or even Greenspan ... the US trade deficit started with Nixon and became politically impossible to stop internally soon after. Bernanke and Greenspan just kept the ball rolling for as long as foreigners were willing to play ball (at gunpoint of the US military, fooled into buying in into US bubbles or otherwise). The alternative being economic collapse (due to price inflation of oil and all the knock on effects thereof).

Anyone with half a brain could see since the 80s or 90s that the dollar was going to default sooner or later and they still accumulated it, what has fundamentally changed since then? They might draw a line in the sand, but it's a completely arbitrary line which has little to do with the marginal cost of new oil ... a line they should have drawn 30 years ago.

Sat, 09/08/2012 - 12:45 | 2774734 Bastiat
Bastiat's picture

Nixon was doomed before he took office:   look to Johnson with Vietnam and the Great Society if you want to see where we headed for fiscal cliff. 

Sat, 09/08/2012 - 13:28 | 2774813 Marco
Marco's picture

The level of wellfare is really an orthogonal issue ... Sweden (or ZH's great inspiration Iceland for that matter) doesn't go off the fiscal cliff because of wellfare.

Sat, 09/08/2012 - 09:43 | 2774344 WeAreJellyfish
WeAreJellyfish's picture

Telegraphing is like throwing a rock in a pond and betting on the kind of waves it will make.

What is so funny about the nagging Tylers comment is all China is doing is holding it's cards close to it's chest. Like all the boating accidents with Gold & Silver - it is none of YOUR fucking business (I keep forgetting folks here know nothing of running businesses - they just feed off em).

Ever read an article an article on ZH? THAT is telegraphing.

Sat, 09/08/2012 - 10:13 | 2774390 Eally Ucked
Eally Ucked's picture

So what is your message to us ooh Great Master of business? "nagging Tylers comment" telling us that China holds cards close to its chest, we know that and?

Are you trying to tell us that ZH article is telegraphing some messages from China or their own message to hoard gold because they have vested interest in it? So what is it?

BTW, throwing rock into a pond causes always the same outcome and you dont have to bet on it unless you have different idea, want to bet on it?

Sat, 09/08/2012 - 11:08 | 2774510 Bay of Pigs
Bay of Pigs's picture

Too obvious. Pretty sure this is another poster/troll just using a different handle. After a few years around here you learn to spot writing styles and language patterns.

Sat, 09/08/2012 - 16:53 | 2775118 Spitzer
Spitzer's picture

The Eurozone as a whole (10,000+ tons) has more gold then the US treasury (8000 tons) and the FED has NO GOLD.

Sun, 09/09/2012 - 04:08 | 2775797 WeAreJellyfish
WeAreJellyfish's picture

I am not the one hiding.

It is Tyler and his bullshit manipulation of dishonestness.

Fukin faggit claims to fight yet can't even show his face and naggin slaves here worship his unaccountability and access to and interpretation of the deepest corruption humanity has reeked.

You dumbmutherfrikinnagginslavetomoney.

Look in the mirror and say "I am spineless"

The truth will set you free.

Sun, 09/09/2012 - 09:47 | 2775979 PhilofOz
PhilofOz's picture

Lead us, glorious leader! We obviously need a white knight with a spine that we can all see, to be hero worshipped.

Sun, 09/09/2012 - 10:58 | 2776069 Bay of Pigs
Bay of Pigs's picture

Anger Management issues? Wow dude, you need to calm down.

Tyler(s) and ZH are not the enemy from what I can see and discern.

Sat, 09/08/2012 - 11:07 | 2774506 vast-dom
vast-dom's picture

you can also revise down the other nation's holdings of gold on the above chart. China wants gold to remain cheap so mum's the word or the exact opposite of driving a shiny ass fancy car with zero savings.

Sat, 09/08/2012 - 11:33 | 2774569 THX 1178
THX 1178's picture

The question is what China is telegraphing.

A Gold-backed Yuan?

Sat, 09/08/2012 - 12:32 | 2774699 palmereldritch
palmereldritch's picture

That plus the fact that they sit on mountains of cash and securities, possess much of the world’s industrial and manufacturing capacity (as engineered by the Globalists) and are the primary home for the production of highly addictive Apple products, the Chinese would like to offer the world, post USD (FRN) collapse (demolition), for their consideration....a new reserve currency they can call....the iAu

Sat, 09/08/2012 - 11:50 | 2774598 jonjon831983
jonjon831983's picture

Cash for Golds.  I checked one out recently - their payout is approximately 50% of spot.


After they get your gold and send it to a refiner, who knows where it goes.


I remember when gold was breaking $1K and news media started talking about these mail in cash for golds that give you a pittance... one of the commercials showed that they were publicly traded.


Terrible... retail markups for the small buyer and when those who need to sell gold they get gouged as well.

Sat, 09/08/2012 - 23:19 | 2775566 Real Estate Geek
Real Estate Geek's picture

50%?!?   JFC!  These guys pay 95% of spot:


Sat, 09/08/2012 - 12:00 | 2774623 LMAOLORI
LMAOLORI's picture



Tyler you mentioned yesterday how in the future it would be China, Russia against the U.S.  (many know that as Gog-Magog) so we should also look at what Russia is telegraphing

Why is Putin stockpiling gold? Commentary: Russia is bulking up its gold reserve

Sat, 09/08/2012 - 12:23 | 2774645 cranky-old-geezer
cranky-old-geezer's picture



The question is what China is telegraphing.

Wonderful article Tyler, way more relevant than the report on Fed's latest ctrl-p arrangng-deck-chairs-on-the-Titanic nonsense (unless you consider debasement and collapse of USD relevant, and I guess it is if you any hopes for the future of America, which will be decisively dashed in due time, particularly after BRIC nations announce their new gold-backed currency, as China is clearly "telegraphing" to everyone who can see past the end of their nose, which unfortunately doesn't seem to include 99.99999% of the American sheeple nor their full-steam-ahead-into-the-iceberg central planners).


Sat, 09/08/2012 - 14:06 | 2774868 DanDaley
DanDaley's picture

China man not so inscrutible to America man who awake, but America man all asleep.

Sat, 09/08/2012 - 15:12 | 2774970 DosZap
DosZap's picture

My money is China already has surpassed the US.(Even if it was still here)

Their outside open purchase, and off record buys, along with being a majo producer, should tell anyone with half a brain the amount foro '09 is pure fiction.

Plus Russia is snagging ALL they can also..................

Going to take a while for anyone to catch India, with it's citizens holding over 22,000 tons, not counting Silver.

Good thing they are a nuclear power, as they would be a prime target,for war just to steal their Gold.

Mon, 09/10/2012 - 05:37 | 2777802 matrix2012
matrix2012's picture

he he he only the very damned nuts will ever consider to steal the gold from a country being populated by 1.2 billions, and with nuke :D

INDIA is not another Libya!

Sat, 09/08/2012 - 23:15 | 2775554 WantinToLickJana
WantinToLickJana's picture

Gold reserves come in different shapes for some countries.  I'm an expat who lives in the foothills of the himalayas in Yunnan province.  Down the road, there are high purity gold deposits in the mountains.  Does the goverment sell mining rights for a quick buck?  Do they mine it themselves with available cheap labor? No, they build an army outpost on the only road out of the mountain to prevent any large scale mining. 

Sun, 09/09/2012 - 18:11 | 2776849 Freegolder
Freegolder's picture

We don't need to guess the next reserve currency, it's so obvious already.

The first currency to seperate itself from the nation state, and also from gold, using it only as a true wealth reserve.

It ain't the Yuan.

But the Chinese will love it because it will be as good as gold.

Few more years...

Mon, 09/10/2012 - 05:46 | 2777803 matrix2012
matrix2012's picture

"The first currency to seperate itself from the nation state, and also from gold, using it only as a true wealth reserve."


*****NWO DOLLAR*****   :D  LoL

aka. R0thschild dollar ==> Babylonian currency


Sat, 09/08/2012 - 10:27 | 2774308 Sean7k
Sean7k's picture

The history of the far east is one of gold and silver. The east never needed anything from the west, thus they would only exchange in gold and silver. Where do you think all that Spanish new world gold and silver went? Europe didn't trade with China and India, they bought silk and spices with the only thing they had of value.

At one time, China was responsible of 2/3's of global production. It is only with the industrial revolution that the numbers changed. Well, the Far East has caught up and once again, the only thing we have of value is gold and silver. China has ALWAYS had a large, productive labor force that was put to work for the benefit of emperors.

We have traded the technology they lacked for the hope of new markets. We may have made a very bad trade. Especially as they continue to buy the resources they need across the globe. Just as our military superiority was a surprise in the 1800's, when China becomes immune from our chest thumping, there will be a sea change in production and where wealth resides.

That is what makes these stats important- they are a signal of this change. 

Sat, 09/08/2012 - 11:15 | 2774522 Marco
Marco's picture

Gold, silver and Opium.

Sat, 09/08/2012 - 13:48 | 2774843 Clashfan
Clashfan's picture

Um, opium at the points of occultist guns.

Sat, 09/08/2012 - 13:55 | 2774855 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

spot on Marco, to be punny,

but in America it's 

GLD, SLV and Hopium

paper, paper and vapor

Sat, 09/08/2012 - 11:56 | 2774612 Vlad Tepid
Vlad Tepid's picture

China has been sending cheaply made stuff (silk, spices and tea grows on trees in China) to the West for 3000 years with only a brief interruption of a foreign cabal (the Qing Dynasty of Manchus) allowing the nation to be addicted to heroin (British opium) which resulted in the most massive wealth transfer ever seen - 3000 years worth of gold and silver accumulation being shifted to the British between 1840 and 1900.  

The Chinese want it back and they've now discovered, having awoken from their opium (and Mao) induced haze that the West still wants cheap crap that practically grows on trees and, as an added bonus, they have , for some amusing reason, convinced themselves that gold and silver are barbarous relics and no longer want them.  

Napoleon said "Let China sleep, for when she awakes, she will shake the world."  We're about to get shaken.

Sat, 09/08/2012 - 14:17 | 2774892 Clashfan
Clashfan's picture

They didn't "allow" it: They fought it and lost (Opium Wars). Rothschilds in general are considered the controlling force behind those, and the British were certainly there, but so were American ships. Check out Russell Trust for example.

Sat, 09/08/2012 - 19:31 | 2775310 BigDuke6
BigDuke6's picture

Nice post but remember the British people saw no gold
It was looted ,as ever, by the banking elite
My ancestors jOined the army to see the world, enforcing the empire and saving the jews from nazis was a side effect

Mon, 09/10/2012 - 06:50 | 2777826 matrix2012
matrix2012's picture


China in the 19th century was humiliated and emasculated by colonialism after the Opium Wars, torn apart by rebellions and brought to its knees by famines. In the 20th century, it endured a revolution, a short-lived republic, a period of warlordism, a civil war, a partial occupation, a world war, a second revolution...

There was nothing, the Chinese loftily replied to the British emissaries, that China needed or wanted from the West not their goods, not their ideas and certainly not their company. There was plenty that the British wanted to buy from China, though, and by the 1780s, the British appetite for tea and Chinese indifference to British goods had produced a trade deficit that the East India Company began to fill by supplying opium grown in British Bengal. It was a trade that greatly benefited the British exchequer, the merchants who traded it, the officials who grafted on it, the Chinese wholesalers who bought it and the foreign missionaries who travelled with it.”

More at

Sat, 09/08/2012 - 09:45 | 2774346 tmosley
tmosley's picture

You only see about 10% of any given iceburg.  I doubt that Hong Kong is the only port taking on gold at the moment.

Sat, 09/08/2012 - 14:31 | 2774921 Never One Roach
Never One Roach's picture

Anyone who has been to Mainland or HK will be stunned when they see how packed their gold stores are. I mean stuff like little old ladies walking out with Kilo HK I also saw literally hundreds of Indians buying massive quantities.

I have no idea where they store all this stuff but they sure buy (an down) alot. I read the Chinese are now #1 buyers for gold from the Perth Mint.

Now that their RE is Bubble High, the Hoards have been switching to the yellow metal.

What Barbarians !!

Sat, 09/08/2012 - 20:21 | 2775360 hivekiller
hivekiller's picture

Jim Willie interview on China's gold purchases, allocated gold theft, and other topics

Sat, 09/08/2012 - 09:02 | 2774286 francis_sawyer
francis_sawyer's picture

<=== I believe that the US has 8,000 tons

<=== The reported 8,000 tons that the US holds is a crock of shizz

Sat, 09/08/2012 - 09:08 | 2774301 Clashfan
Clashfan's picture

And if we don't have it, who does? Did it disappear?

Sat, 09/08/2012 - 09:16 | 2774313 Sean7k
Sean7k's picture

When global currencies crash, we'll find out just who has the gold. I'm willing to bet that sovereign regimes are bereft of any metal.

Sat, 09/08/2012 - 13:58 | 2774859 No Euros please...
No Euros please we&#039;re British's picture

Don't forget that the Fed holds a lot of gold for "safekeeping". It seems to be common knowledge that they have over 50% of Germany's gold and are refusing to repatriate it. Make of that what you will. It has been suggested that if Germany kick up a fuss the whole gold scam will collapse and force the Fed to "confiscate" all held reserves, theirs or not.

Mon, 09/10/2012 - 07:33 | 2776393 matrix2012
matrix2012's picture

or they can try to find another Qaddhafi to confiscate the needed barbarous relic... LIBYALIZATION damn it!

Sat, 09/08/2012 - 09:34 | 2774334 CunnyFunt
CunnyFunt's picture

For a start, check Corzine's bunker.

Sat, 09/08/2012 - 09:46 | 2774348 Clashfan
Clashfan's picture

Ha, you might be looking in the wrong bunker.

Sat, 09/08/2012 - 11:31 | 2774563 Optimusprime
Optimusprime's picture

Lots of good information in your link.  It is, however, very poorly edited, which always shakes confidence.

Sat, 09/08/2012 - 13:32 | 2774822 Clashfan
Clashfan's picture

Yeah, I noticed that. Had to be quick--wife was making pizza for brunch.

Sat, 09/08/2012 - 21:01 | 2775390 BigDuke6
BigDuke6's picture

I liked it too
But why do they always go too far and identify prince William as the Antichrist to be annointed in 2015...

Sun, 09/09/2012 - 01:21 | 2775717 Clashfan
Clashfan's picture

Anything like that is pretty stupid to me. Honestly, I have to admit that I didn't read that far.

When you smell hot, fresh pizza, you go with the best link you've found so far, I guess.

I shall try to redeem myself in the future. Apologies. That part of it makes it look like callous disinfo, I admit. Thanks for calling my attention to it.

On another note, my wife tells me that John Wayne was gay. She has to be wrong, right?

Sun, 09/09/2012 - 03:33 | 2775782 i-dog
i-dog's picture

Anything that tries to pin the conspiracy onto Rothschild and/or "the jews" is callous disinfo!

The attempt to bring America back under control immediately after the Revolution, through the efforts of that scheming cocksucker Alexander Hamilton and those around him, pre-dates Rothschild's rise to financial power by nearly a full generation. Rothschild is simply a convenient (though also complicit) target for public anger to be redirected at ... and therefore away from the real ideological power.

Sun, 09/09/2012 - 11:45 | 2776152 Clashfan
Clashfan's picture

Idog, the question was where the gold went.

I'm not a "Jews did it" kind of guy. Mullins is a very good writer and researcher, I think.

Rothschild was plenty powerful when the family was Bauer. I'd point to occultists/Luciferians. He had a red hexagram on his door. Lots of folks do that, right? Now there's a hexagram on the Israeli flag, and they lie and call it the star of David, when it is actually a satanic mark that comes from Solomon's turn away from God. Coincidence?

Clearly, Rothschilds were the driving force behind Israel's creation.

Callous disinfo? Hardly. If you look at the first link that's being attacked for ending w/the Prince/antichrist stuff, and you look at some of the other links regarding the same material, I think you'll see something interesting: The same exact words/pilfered piece is out there on several sites--something I noticed early on. One site (the one I too quickly tossed up) steals those words and then puts a final chapter to it that others don't. It's really that simple. :)

Denying the power of the Rothschilds to protect "the Jews" is as much off target as saying "The Jews did it," imo. There's clearly a strong Jewish/occultist connection to all of this. The Jews have a strong occultist side to the religion--Jewish mysticism/Kabbalah. It's clearly a part of all of this, undeniably.

Pinning everything on "the Jews" is wrong, imo, and illogical. But denying their clear role is simply ignorant, too.

Clearly, w/American luciferianism, it came here on the Mayflower. One good piece to read is "Young Goodman Brown," by Hawthorne (someone who would have been in a position to know). I'm sure we'll have more parts of this discourse later--or at least I hope so.

Sun, 09/09/2012 - 19:18 | 2776945 i-dog
i-dog's picture

I'll answer your points tomorrow morning, Clashfan, when I have more time. Or you could go through some of my posts on the Sabbateans from about 9 months ago.

For the moment, you need to understand the connection between the Jesuits (crypto-jews, like Loyola and Weishaupt) and Sabbateans (Ashkenazi jews, from Khazakstan, going back as far as 2000 BC ... ie. before the creation of Judaism and long before the Church of Rome and later spinoffs). The Luciferians are the 'Pharisees' of the Bible and their present incarnation is as both the Jesuits and the Sabbateans (just different names for the same ideology, depending on the needs of the moment). The Jesuits do the political manoeuvering, the Sabbateans manage the money.

Mon, 09/10/2012 - 10:17 | 2778187 matrix2012
matrix2012's picture

Just read very carefully the below wording for the author clearly said that he is NOT an anti-Semite!! The anti-Semite bashes have been widely misused intentionally to shut off the opposing views!


"...The Rothschilds claim that they are Jewish, when in fact they are KHAZARS.  They are from a country called Khazaria, which occupied the land locked between the Black Sea and the Caspian Sea which is now predominantly occupied by Georgia.  The reason the Rothschilds claim to be Jewish is that the Khazars under the instruction of the King, converted to the Jewish faith in 740 A.D., but of course that did not include converting their Asiatic Mongolian genes to the genes of the Jewish people.

You will find that approximately 90% of people in the world today who call themselves Jews are actually Khazars, or as they like to be known, Ashkenazi Jews.  These people knowingly lie to the world with their claims that the land of Israel is theirs by birthright, when in actual fact their real homeland is over 800 miles away in Georgia.

So, next time you hear an Israeli Prime Minister bleating about the so-called persecution of the Jews, consider this, every Prime Minister of Israel has been an Ashkenazi Jew.  Therefore when all these Prime Ministers have curried favour with the West for their re-establishment of a Jewish homeland, they have knowingly and deliberately lied to you, as they were never from that region, and they well know it, because it is they who call themselves Ashkenazi Jews.

The Book of Revelation, Chapter 2, Verse 9, states the following which would appear to be about these Ashkenazi Jews:

"I know thy works, and tribulation and poverty, (but thou art rich) and I know the blasphemy of them which say they are Jews, and are not, but are the synagogue of Satan."

The most wealthy bloodline in the world bar none and the leader of the Ashkenazi Jews in the world today is the Rothschild family.  As you will see in the timeline, the Rothschilds have obtained this position through lies, manipulation and murder.  Their bloodline also extends into the Royal Families of Europe, and the following family names:  Astor; Bundy; Collins; duPont; Freeman; Kennedy; Morgan; Oppenheimer; Rockefeller; Sassoon; Schiff; Taft; and Van Duyn.

However, these are not the only bloodlines to worry about.  You are probably aware of the centuries old practice undertaken by many Ashkenazi Jews whereby they would change their name, in order for them to appear part of the dominant race of the country in which they lived, so as they could obtain influential positions in that country, which they would then exploit to serve their real masters elsewhere.  There is plenty of evidence to prove the Rothschilds continue that deceptive tradition.

Furthermore the Rothschilds are known to sire many children secretly that they can put into positions of power when required.  This started with the very first man who took the name Rothschild, who had a secret sixth son.  Finally, remember the world is a diverse place, I could if I wanted change my name to Rothschild, or any of the names listed above, and that would not make me part of this family anymore than converting to Judaism in 740 A.D. will make these Ashkenazis Jewish.

Please, therefore, do not automatically assume someone you see with the name Rothschild or any of the names listed above are part of the Rothschild criminal network.  Furthermore and MOST IMPORTANTLY, the majority of Ashkenazi Jews are INNOCENT and NOT part of this network.  Check the facts out for yourself first, this article is designed to inform people who the enemy is, NOT single out people of a particular race or people with a particular surname, who may have nothing to do with this Rothschild criminal network...."

Note: the Rockefeller family are Rothschild descendants through a female bloodline


Quoted from Andrew Hitchcock's masterpiece of the World 2.5-Century Timeline, "The History of the House..." - or its terser .ppt version:


In addition to the reading of Hitchcock and  Amanita's "Bilderberg Conference 2010: watch out!" -

one should see this SUPER CHART to comprehend how far is their grips to the Amerika and the world!!!


--> That's WHY some particular countries do allow and strongly support DUAL-CITIZENSHIP !!! Most nations do not recognize such dual-citizenship, which practically means dual-loyalty. Just pay attention to those holding dual-citizenship, who are them MOSTLY.

Mon, 09/10/2012 - 11:29 | 2778335 i-dog
i-dog's picture

Thanks ... but that's only half the story of the Khazars. Note my references to 2000BC and also to the Jesuits.

Any "exposé" of the Khazars that fails to make the connection to the Jesuits (and especially to the Knights of Malta), or exposes the Jesuits but fails to make the connection to the Khazar Sabbateans (eg. Eric Jon Phelps and his otherwise-excellent "Vatican Assassins") is a "limited hangout" ... or just poorly researched through "goal seeking" to a pre-conceived conclusion.

BTW, Mayer Amschel Rothschild only started making serious money in 1796 (ie. long after the forming of the Illuminati by the Jesuits and their takeover of Freemasonry) then was able to send his 21-yr-old son Nathan to London in 1798 with a small fortune. Prior to that he had only recently risen to middle class and had been living in a squalid rented shack until he bought half of the Schiff family house, known as "Green Shield", in 1785. (The "Red Shield" name goes back to a rented house his ancestors lived in 6 generations earlier).

By 1800, the Rothschilds had become the 10th richest Jewish family in Frankfurt ... and progressed from there, mainly through Nathan's activities and his fortuitous marriage into the Barent-Cohen family ("considered a great triumph" by Nathan) in London....

Tue, 09/11/2012 - 00:52 | 2780829 matrix2012
matrix2012's picture


i-dog, both Rothschild clans and Jesuits/Knights of Malta/Vatican City are terribly guilty for their ruthless hands are covered by blood of millions over millions of lives of cruel wars over centuries they have been pushing forward, for many of the great mankind exploitations and miseries orchestrated by them  ... UNTIL TODAY!!! Possibly they just work hand in hand pursuing the same ultimate Luciferian Agenda!

Indeed I don't bother much to differentiate both sides. Both are venomous to humanity!


The Most Powerful Man in The World - The "Black" Pope


For the newer links, just search the net:



Tue, 09/11/2012 - 07:47 | 2780944 i-dog
i-dog's picture


"Possibly they just work hand in hand "

LOL ... You're still completely missing the point!! ... they're the same fucking thing: same families, same names, same organisation.

Was that deliberate misinfo, or did you just not bother to look into it?

Tue, 09/11/2012 - 14:04 | 2782444 matrix2012
matrix2012's picture

i-dog, will accept that they simply belong to the same cabals. Guess i just overlook it amidst the pile of info :->) LoL

Sun, 09/09/2012 - 01:24 | 2775718 Clashfan
Clashfan's picture

David Icke presents a lot of good info, too. Then he hits you with the lizard people.

Maybe Jim Morrison was onto something? Maybe Icke's counterintel? Or maybe he's just nuts.

Still, he presents a lot of good info.

Watch out for forked tongues.

Sun, 09/09/2012 - 03:31 | 2775783 i-dog
i-dog's picture

Icke is a high-level Freemason. 'Nuff said....

Sun, 09/09/2012 - 11:50 | 2776171 Clashfan
Clashfan's picture

I had not heard that, and it's not impossible that it's true. I just don't know that w/solid sources. Links? Even if he is, it's not impossible for high-level masons to revolt. Still, I don't buy the lizard people stuff. I'm not close-minded enough to say it's impossible, either. I've read some of the ancient native American stuff. There is other lore that points to it being true, too. I simply don't buy it--the reptilian thing. Icke is far from the only one who says it. It's even on the Ancient Aliens stuff--others who point to the Annunaki, etc.

In fact, my problem w/Mullins, who is a solid researcher from what I can tell, is that he seems to take pains to avoid the occultist side--or at least what little of his I've read does. The guy wrote a ton of stuff. Next on my list is his work on Pound, when I have time....

And Icke has done some good work on SRA and has (or had) a decent forum on it--Smartnews? Can't remember. It's been a while. Lots of strands in old duder's head.


Sun, 09/09/2012 - 01:50 | 2775741 Clashfan
Clashfan's picture

BigDuke, this video will give you the same info (almost word for word in spots) w/out the "antichrist" crap:

Sun, 09/09/2012 - 03:15 | 2775771 Clashfan
Clashfan's picture

More good info here. E Mullins is interesting, though I don't agree w/all of the work--and this chapter may be a bit off topic but very helpful and very well written.

Basically, what I'm saying is that, with or without a "gold standard," the same family--Rothschild--will continue to weild immense power over most nations' money supplies b/c they have a huge degree of control over the gold market despite the announcments in the previous decade that they have left the gold game.

Sun, 09/09/2012 - 03:22 | 2775779 Clashfan
Clashfan's picture

Last one on this thread for me, but I did promise to redeem myself, eh? More great Mullins stuff on the Rothschilds. Gold goes here.

Tue, 09/11/2012 - 01:13 | 2778295 matrix2012
matrix2012's picture


Talking about EUSTACE MULLINS, one should read this exclusive interview with him:

"An Afternoon With Eustace Mullins" -

"Eustace Mullins is the last living protege of Ezra Pound, the author of the only book burned in Germany since Hitler (a burning under the direction of Americans) and a former researcher for Joseph McCarthy. He's known almost everyone on the American Right for the last 50 years, and is one of the most hated men in America in some circles. He belongs to no group, espouses no movement or party and doesn't give a damn what you think of him. I found an affable 80 year- old man with a healthy sense of humor and a keen love for Liberty. Here's a piece of my conversation with him on his front porch..."


I still recall that many years ago, upon reading this interview, it arose my fond interests to read more about him and his works! And also instigated my attention about EZRA POUND.




    “The Nomadic Parasites will shift out of London and into Manhattan. And this will be presented under a camouflage of national slogans. It will be represented as an American victory. It will not be an American victory.

    Until you know who has lent what to whom, you know nothing whatever of politics, you know nothing whatever of history, you know nothing of international wrangles.” — Ezra Pound (1885–1972)


“The monopoly of money, or the restriction of its circulation, is merely a variation of this simple form of monopoly. That is all. The stupid fall into the trap. Wars are provoked in succession, deliberately, by the great usurers, in order to create debts, to create scarcity, so that they can extort the interest on these debts, so that they can raise the price of money (i.e., the price of the various monetary units controlled by, or in the possession of, the same autocrats), altering the prices of the various monetary units when it suits them, raising and lowering the prices of the various foodstuffs when it suits them, completely indifferent to the human victim, to the accumulated treasures of civilization, to the cultural heritage.” — Ezra Pound (1885–1972)


Tue, 09/11/2012 - 01:19 | 2777852 matrix2012
matrix2012's picture

Clashfan, its a very good kick-off reading for eye opener... light and pretty concise !!


For more detailed reading, move on to Andrew Hitchcock's "The History of the House..." 

and Amanita's "Bilderberg Conference 2010: watch out!".


EDIT: Ooops! First it's juust one link then popped up many more.. :D




Clashfan, I think you must spare some time to read W. Cleon Skousen's "The Naked Capitalist" as well


Sat, 09/08/2012 - 10:00 | 2774370 Clashfan
Clashfan's picture;article=2785

From the immediately above:

Bill Murphy, from the Gold Anti-Trust Action Committee, said this some years ago in a speech, and - not being an economist, thank you - I think he's quite good at explaining it like this: IMF and BIS are lying through their teeth. Like all swindlers they say one thing, and than secretly do the others.

"Meanwhile the International Monetary Fund has instructed central banks to lie about their gold reserves - to count gold loans and swaps as gold in their vaults. So as not to be so audacious without backup to validate our more than dramatic claim, let me explain. Canadian GATA supporter Andrew Hepburn posed the following question to the IMF in October 2001: Why does the IMF insist that members record swapped gold as an asset when a legal change in ownership has occurred? [Good questions! - HR] - See Url.:

Yet more:

Yet a footnote on the Internet site of the central bank of the Philippines contradicts the IMF's claim and reveals it to be bogus: "Beginning January 2000, in compliance with the requirements of the IMF's reserves and foreign currency liquidity template under the Special Data Dissemination Standard (SDDS), gold swaps undertaken by the BSP with non-central banks shall be treated as collateralized loans. Thus, gold under the swap arrangement remains to be part of reserves and a liability is deemed incurred corresponding to the proceeds of the swap." [See #20 - HR] at Url.:

Sat, 09/08/2012 - 11:38 | 2774584 Marco
Marco's picture

This isn't really relevant to the US ... if they swap for dollars they can always pay off the swap ... it would just be a way to very temporarily support the value of the dollar (at the cost of even more inflation down the line).

It's only banks without a dollar printing press which can lose their gold by entering a gold swap for dollars.

Sat, 09/08/2012 - 12:42 | 2774724 cranky-old-geezer
cranky-old-geezer's picture



Why does the IMF insist that members record swapped gold as an asset when a legal change in ownership has occurred?

Ever heard of "rehypothecation"? 

No?  Go ask Corzino, he knows all about it.

Sat, 09/08/2012 - 09:47 | 2774351 tmosley
tmosley's picture

Probably the same people that have the silver from the vaults of MFG.

Sat, 09/08/2012 - 10:03 | 2774374 WeAreJellyfish
WeAreJellyfish's picture

Of course shithead.

Remember the boating accidents the family named Bush and other political friends had?

Collateral is the end of the barrel of US guns. I know that for a fact and can prove it with photos and videos of real live people who do not have arms, legs or family members.

Tell me what the church of goddamnedmutherfrikinnaggerslavestomoney has as far as proof that number of 8,000 + tons is real and not just on a screen or piece of paper?

no interest on money creation

Sat, 09/08/2012 - 11:12 | 2774514 MsCreant
MsCreant's picture

You are starved for attention, aren't you?

"You are not a beautiful and unique snowflake.  You are the same decaying organic matter as everyone else, and we are all part of the same compost pile. " ~Chuck Palahniuk, Fight Club, Chapter 17

What you are saying is not news to anyone. You are not "schooling" anyone. All you are doing is being rude for no good reason, stating the obvious with too much venom.

Sat, 09/08/2012 - 11:13 | 2774516 Bay of Pigs
Bay of Pigs's picture

I should have scrolled down. LOL...

Sat, 09/08/2012 - 11:27 | 2774551 centerline
centerline's picture

Collateral, at it's highest level, has always been at gunpoint.

Sat, 09/08/2012 - 12:46 | 2774738 FEDbuster
FEDbuster's picture

Got Guns?

Sat, 09/08/2012 - 13:38 | 2774827 americanspirit
americanspirit's picture

Jon Corzine has it in the basement of his villa in France ( a tip to the French tax collectors)

Sat, 09/08/2012 - 09:01 | 2774289 Stuck on Zero
Stuck on Zero's picture

Per person that's not a lot.


Sat, 09/08/2012 - 09:10 | 2774302 Dr Benway
Dr Benway's picture

Per person everyone on earth gets an ounce if all mined gold is split. That's not a lot.

Sat, 09/08/2012 - 10:36 | 2774432 savagegoose
savagegoose's picture

fuck i better get a gun

Sat, 09/08/2012 - 12:08 | 2774637 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Yes!  Pb and Au are very complimentary.

Sat, 09/08/2012 - 15:40 | 2775028 r3phl0x
r3phl0x's picture

Guns are the modern alchemy: they convert lead into gold.

Sat, 09/08/2012 - 09:02 | 2774290 CunnyFunt
CunnyFunt's picture

Buy real gold then sell fake gold.

Sat, 09/08/2012 - 09:03 | 2774292 ParkAveFlasher
ParkAveFlasher's picture

Makes me wanna say...

Sat, 09/08/2012 - 10:51 | 2774455 ParkAveFlasher
ParkAveFlasher's picture

gold, bitchez!

Sat, 09/08/2012 - 09:04 | 2774294 bushwarcrime
bushwarcrime's picture

Yuan something from the menu?

Yuan something off the menu?

What is it Yuan?

I have exactly what Yuan.

Believe me, I know what Yuan.

Yuan it all right? Yuan it now right? Yuan it cheap right?

Here it comes, exactly what Yuan.

Sat, 09/08/2012 - 09:56 | 2774363 moonstears
moonstears's picture

witty babling poem, there. up arrow for woo! 

Sat, 09/08/2012 - 11:16 | 2774526 MsCreant
MsCreant's picture

Yuan to make something of it? I think you did!

Yuan it, you got it.

Sat, 09/08/2012 - 09:05 | 2774295 Peter Pan
Peter Pan's picture

I am always fascinated how imports of gold are considered IMPORTS. When you hand over fiat for gold it should be considered an export of paper.

Sat, 09/08/2012 - 09:06 | 2774296 Clashfan
Clashfan's picture

Vietnam becomes a sadder event for us daily.

Sat, 09/08/2012 - 13:16 | 2774785's picture

It's even sadder for the innocent victims:

Sat, 09/08/2012 - 09:09 | 2774303 youngman
youngman's picture

Hmmmm..faster than usual...looks like they can see the train a commin.....Russia too by the way......and soon I think they are going to call a little summit...with good food of couse announce something

Sat, 09/08/2012 - 09:22 | 2774304 falak pema
falak pema's picture

china still has a long way to go, absolute wise, as per capita wise its just wayyy outside ballpark limits.

ECB basically is now surrogate of three or four big Euro nations; as its decided to throw in the towel and print, print print. Germany and France now own the ECB's independence (and vice versa); with Italy and Spain acting as agents of bankruptcy and asking for "blackmail premiums". 

Sat, 09/08/2012 - 09:13 | 2774306 The Fonz...befo...
The Fonz...before shark jump's picture

China is playing chess
ECB is playing checkers

Sat, 09/08/2012 - 09:51 | 2774357 StychoKiller
StychoKiller's picture

The Chinese are playing 'go', not chess

Sat, 09/08/2012 - 09:59 | 2774368 GetZeeGold
GetZeeGold's picture



Would you like to play a game of tic tac toe?


Sat, 09/08/2012 - 10:36 | 2774433 GMadScientist
GMadScientist's picture

And the ECB just inserted a black checker in its left nostril.

Sat, 09/08/2012 - 12:11 | 2774642 DoChenRollingBearing
DoChenRollingBearing's picture

Ha ha!  + 1

Wait another week, they will put a red one up their right...  Snort!



Mon, 09/10/2012 - 12:57 | 2778379 matrix2012
matrix2012's picture

Besides playing Go, Chinese people also play Chinese chess or xiangqi



"To travel is to discover that everyone is wrong about other countries." -- Aldous Huxley, author of 'Brave New World', 'Brave New World Revisited', 'The Doors of Perception', etc.

Sat, 09/08/2012 - 09:14 | 2774309 Debugas
Debugas's picture

China is preparing to float yuan as the global reserve currency and they need more gold to back it up

Sat, 09/08/2012 - 10:22 | 2774403 Bobbyrib
Bobbyrib's picture

I doubt any country will be dumb enough to back their currency with gold. Who wouldn't want the real thing after this crisis and the coming crises?

Sat, 09/08/2012 - 12:00 | 2774624 Vlad Tepid
Vlad Tepid's picture

All they have to do is SAY it's backed and show their gold reserves.  They don't have to make it convertable.  They say it's backed and let it be reliably third-party audited - BOOM, new reserve currency (as John Madden would say)

Sat, 09/08/2012 - 09:15 | 2774310 AUD
AUD's picture

And before you slag him off; he knows more about the gold business than most, since he actually works in the business of gold, unlike most 'experts'.

Sat, 09/08/2012 - 09:21 | 2774322 onebir
onebir's picture

I've seen some detailed & informative posts on that site.

Unless there are tax avoidance/smuggling issues messing up the statistics, wouldn't it be more informative to look at net imports of gold into China from HK (ie imports - exports)? 

Sat, 09/08/2012 - 09:35 | 2774333 AUD
AUD's picture

Probably, but the premise of the article is that the gold is being used for currency market arbitrage rather than government acquisition.

Sat, 09/08/2012 - 09:54 | 2774360 Hype Alert
Hype Alert's picture

Right, they're using gold as currency and not US$!  Does it really matter if they are hoarding gold or not when they've stopped using US$ as currency?  The point is the US$ is rapidly dropping in value regardless of what is reported by some comparitive "basket of currency" number.  If all fiat currency is being devalued, the basket price will remain the same, but milk, eggs and gold go up and your standard of living will go down.

Sat, 09/08/2012 - 09:56 | 2774361 onebir
onebir's picture

Sure, but it can't be used for anything if it's getting reexported. & no one ever seems to quote the net figure.

(I did have a quick dig for the figures on the HK stats agencies site, & TBH, I don't blame anyone for not wanting to trawl through it! Stats agency website + Chinese talent for webpage layout = luanqibazao squared.)

Sat, 09/08/2012 - 09:38 | 2774343 Tyler Durden
Tyler Durden's picture

It would appear that the "various [unnamed] sources" and "contacts" are the source of the "knowledge", or technically lack thereof, and perhaps the reason "nobody wants to talk about it" is because GFMS is axed in gold. Hopefully these sources are of as high quality as those that leak the ECB's [lack of] strategy on an hourly basis.

Finally, whatever the end use of the gold (maybe as a substitute to copper and iron as collateral, both of which have recently imploded - who knows: our "unnamed sources" on the ground had no opinion either way) the point is the demand is there, and at the end of the day, the physical gold is now on Chinese territory. As to whether it will be used by the PBOC in some fashion, perhaps after it is confiscated once the margin call has been made and the client hands over the "collateral", we will, as said in the article, wait to see until the formal PBOC 8-K is issued. With a 3.5 year delay since the last one, one surely will be coming soon.

Tue, 09/11/2012 - 02:45 | 2780897 matrix2012
matrix2012's picture

Here's a much simpler one, much less words and more effective!

CHARTS: Less words, more charts --> divulging Business Insider


Btw, Alex Jones is a shill

Sat, 09/08/2012 - 21:35 | 2775426 Bron Suchecki
Bron Suchecki's picture

Tyler, it is very amusing you jump on the "unnamed sources" part of the GMFS report, when you yourself often deal in such information. Does that mean we should discount everything King World News' London Trader says just because he is "unnamed"?

Also, if you read GMFS' note, they say it is "round tripping" which means the gold is going back out, so "the physical gold is now [not] on Chinese territory." That is the point, the actual net imports are lower than reported.

In reference to the "nobody wants to talk about it" - in speaking with our bullion bank contacts we can confirm the transactions are happening as GFMS describes, what nobody wants to talk about is the specific details of the arbitrage, volumes or who is involved.

These sorts of round tripping arbitrages occur from time to time in the gold market as traders take advantage of profit opportunities or loopholes or game tax incentives. The rarely last once authorities find out about them.

My post is not saying the Chinese aren't buying a lot of physical, both visibly and under the radar. A fair bit of the 5-6 tonnes of gold the Perth Mint sells to bullion banks each week is destined for HK/China as we see the shipment paperwork.

The point of my post is just to say that one should not take the Chinese import figures at face value.

Mon, 09/10/2012 - 13:03 | 2778867 matrix2012
matrix2012's picture

"the physical gold is now [not] on Chinese territory."


If it's located in HK, how can it is [not] within Chinese territory ???

Sat, 09/08/2012 - 09:19 | 2774317 eigenvalue
eigenvalue's picture

To be honest, I don't think the Chinese are so clever. China also imported huge amounts of copper, red wine, etc in the past several years. However, those imports were simply for speculative purpose.  The credit is quite tight in China at the moment. If the gold price crashed, China could become a large seller of gold. 

Sat, 09/08/2012 - 09:36 | 2774335 Bobbyrib
Bobbyrib's picture

While the importing and hoarding of copper and importing red wine was speculative importing gold is a strategy. You can't keep printing fiat and expect the value to remain constant. Eventually the value of fiat currencies will devalue against gold permanently. China knows this. so they will not be selling their gold. While the price of gold may go down temporarily, the long term outlook is bullish to say the least.

Sat, 09/08/2012 - 10:00 | 2774371 eigenvalue
eigenvalue's picture

Do you know that ancient Chinese often used COPPERIRON  and sometimes CLOTH as their currency instead of gold and silver? According to my experience with the Chinese, land and apartments are their first choice as the store of value instead of gold or silver. I just want to tell you not to overestimate the intelligence of the Chinese

Sat, 09/08/2012 - 10:22 | 2774397 moonstears
moonstears's picture

Really, In a communist country land is a good hedge, huh? I think that's idiotic. Not saying it's not true eigenvalue, just illogical, in my thinking. Small metal disks (easily hidden and stored)and metal jewelry seems a better choice, in a democratic republic, more so in a planned economy where the state owns it all. JMO

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