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Switzerland Launches Referendum To Stop SNB Lunacy, Save Swiss Gold

Tyler Durden's picture


From Alex Gloy of Lighthouse Investment Management

Save The Swiss Gold

According to an article in Swiss newspaper NZZ (Neue Zuercher Zeitung) the SVP party (Swiss People’s Party) launched a referendum to “protect” the 1,000 tonnes of gold owned by the Swiss National Bank (SNB). Their aim is to:

  • make it unconstitutional to sell gold
  • force the SNB to hold 20% of its assets in gold (currently 16%)

The SVP said the sale of 1,500 of the SNB’s 2,500 tonnes of gold was regrettable, especially given the Swiss population had no say in this.

For the referendum to be launched the action committee needs to collect 100,000 signatures from supporters of the measure. They have until March 20, 2013 to do so.

In Switzerland, a referendum is serious business. Direct democracy. Memorable votes include the 1992 decision to stay out of the EU, or the (defeated) referendum to abolish the Swiss Army (1989, 2001).

The initiative could complicate the SNB’s dream to manipulate the EUR/CHF exchange rate. As FX interventions blow up its balance sheet the SNB could be forced to purchase large quantities of gold to adhere to the above mentioned 20% gold ratio.

The 100,000 signatures should be achievable. Having lived in Switzerland for 8 years I could imagine for this referendum to pass.


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Tue, 09/20/2011 - 07:42 | 1688023 AngryGerman
AngryGerman's picture

snb buying gold and limiting cash withdrawls by germans plus peg. this will be fun

Tue, 09/20/2011 - 11:00 | 1688761 slewie the pi-rat
slewie the pi-rat's picture

they will have signatures before oktoberfest and this will pass but maybe the rest of the gold will be sold by then?

Tue, 09/20/2011 - 07:43 | 1688024 PaperBear
PaperBear's picture

“the sale of 1,500 of the SNB’s 2,500 tonnes of gold was regrettable”

Looks like they had a fool of a Chancellor or Treasurer just like our Mr Brown.

Tue, 09/20/2011 - 08:02 | 1688072 bigdumbnugly
bigdumbnugly's picture

yeah, unfortunately i think that gordon brown was cloned at birth by some diabolical mad scientist and parceled out to as many western nations as neccesary.

Tue, 09/20/2011 - 08:40 | 1688184 Pladizow
Pladizow's picture

This was done in 2000 inorder to join the IMF!

Inorder to be a member of the IMF your currency cannot be backed by gold.

Book on this = Ferdinand Lipps "Gold Wars: Sound Money from a Swiss Perspective"

Tue, 09/20/2011 - 08:04 | 1688076 spiral_eyes
spiral_eyes's picture

Mr Brown and much of the European establishment have been indoctrinated into the "inflation is good" lunacy.

Chief proponent of that today is Paul "Aliens" Krugman. 

We don’t need more inflation. We need to pay down our debts in a timely and honest fashion, and if we can’t do that we need to default.

Krugman thinks weak demand is eating the global economy. It’s not. The real problem is American imperial overstretch. 

Tue, 09/20/2011 - 08:23 | 1688137 Smiddywesson
Smiddywesson's picture

We long ago passed the point of no return.  Those debts will not be paid in full.  That's why the central banks are buying gold.  We need a system reset.

Tue, 09/20/2011 - 08:04 | 1688078 GeneMarchbanks
GeneMarchbanks's picture

'especially given the Swiss population had no say in this.'

Give the full quotation, for full effect for our non-gold holding friends;)

Tue, 09/20/2011 - 08:14 | 1688105 EasterBunny
EasterBunny's picture

Didnt Switzerland have to sell gold in accordance with IMF conditions when they joined that institution?


Tue, 09/20/2011 - 08:17 | 1688115 GeneMarchbanks
GeneMarchbanks's picture

I believe so, but that doesn't account for 1,500t or whatever the amount was.

Tue, 09/20/2011 - 07:43 | 1688026 Ratscam
Ratscam's picture

dead line for collecting the 100'000 votes is March 31, 2013. 

By then we already have new money.

Tue, 09/20/2011 - 07:47 | 1688040 Ketsa
Ketsa's picture

Yeah and even if we get the 100k signatures by march 2013, we then need to Vote by 2015-2016 or later if they want to drag the thing, They then have a few more years to apply the law.

In fact, no change before 2020 and the SNB can take mesures accordingly.



Tue, 09/20/2011 - 07:49 | 1688045 Crash N. Burn
Crash N. Burn's picture

 Still, when you consider the swiss francs' performance (relative to gold) recently, it is a prudent, albeit late, thought.

Tue, 09/20/2011 - 08:34 | 1688160 Smiddywesson
Smiddywesson's picture

dead line for collecting the 100'000 votes is March 31, 2013. 

By then we already have new money.

EDIT:  I read this 2012, not 2013.  I agree, that is far too long.

Original comment:  I wouldn't be so sure of that.  TPTB have been surprisingly good at kicking the can, and will no doubt keep changing the rules in what is a man made reality.  Yes, it must come to an end, but I have no idea when.  Catalysts:

Gold prices go vertical

JPM loses control of silver

Global chaos/war breaks out

The central bankers reach their acquisition targets

The Comex blows up

Everyone in the GLD realizes they are on cracking ice and run for the door

China successfully crushes the can so it can no longer be kicked.  Their gold exchange could do that, and there can be no doubt they would love to stick their finger in the eyes of the Fed and ECB

Tue, 09/20/2011 - 09:18 | 1688353 r3vbr
r3vbr's picture

I own my gold in GLD, I know of no other simple way to own gold in a liquid form without paying huge 5%+ markups

give me some suggestions please.

I also own a little GDX.

Tue, 09/20/2011 - 09:34 | 1688417 Smiddywesson
Smiddywesson's picture

Eric Sprott's PHYS is backed by physical gold in Canada.  You still have the risk Canada or the USG will confiscate or tax it to death, but at least this paper gold is backed by a hard asset.  He also has a very good reputation.

Tue, 09/20/2011 - 11:03 | 1688771 PaperWillBurn
PaperWillBurn's picture exactly do you own gold in GLD?

Maybe you meant to say "I track the paper price of gold via shares of GLD"?

Mon, 10/24/2011 - 21:16 | 1806699 AE911Truth
AE911Truth's picture

Re: "simple way to own gold"

change to: "simple way to own paper gold"

There, fixed that for ya.

Tue, 09/20/2011 - 07:44 | 1688027 Turd Ferguson
Turd Ferguson's picture

power to the people

Tue, 09/20/2011 - 07:54 | 1688057 Ratscam
Ratscam's picture

Switzerland as opposed to any country in the world has a direct democracy however, the process is so slow that by the time you get to vote as a citizen the iPhone 9 is obsolet.

Tue, 09/20/2011 - 08:08 | 1688084 SWRichmond
SWRichmond's picture

Not if TPTB can help it.

Tue, 09/20/2011 - 10:18 | 1688571 woolly mammoth
woolly mammoth's picture

Green arrow for your blog Turd.

Tue, 09/20/2011 - 07:45 | 1688029 Banjo
Banjo's picture

Maybe the Swiss population should buy some physical gold instead of signing paper. Outside this I would adivse the government and central bank to sell the lot and make it very public. Don't allow China or India buy the lot in bulk instead dribble it out.

Tue, 09/20/2011 - 09:02 | 1688141 Mercury
Mercury's picture

Or they could give the Swiss public first refusal on any SNB gold for sale.

Tue, 09/20/2011 - 07:46 | 1688035 PaperBear
PaperBear's picture

“force the SNB to hold 20% of its assets in gold (currently 16%)”

I hope that the Swiss people have not been dumbed down so much that they do not view gold as proper money.

Tue, 09/20/2011 - 07:56 | 1688059 Ratscam
Ratscam's picture

I would not even bet fiat money on your hope

Tue, 09/20/2011 - 07:46 | 1688038 apberusdisvet
apberusdisvet's picture

The banking cartel will not like this.  Maybe the Swiss will be taught  a lesson like Lybia.

Tue, 09/20/2011 - 07:48 | 1688044 AngryGerman
AngryGerman's picture

NATO is preparing to strike! keynesian war on swiss!

Tue, 09/20/2011 - 07:51 | 1688051 Azannoth
Azannoth's picture

Suddenly it will be discovered that all of Swiss gold is in fact 'holocaust gold' and needs to be repatriated to Israel with the full backing on the US Army

Tue, 09/20/2011 - 07:58 | 1688063 AngryGerman
AngryGerman's picture

but the germans just accidently "found" it during the war

Tue, 09/20/2011 - 07:47 | 1688039 swiss chick
swiss chick's picture

Ir's about time somebody reacts!

Tue, 09/20/2011 - 07:48 | 1688042 scratch_and_sniff
scratch_and_sniff's picture

Let the pair dive to 0.5000 and see whos complaining then, for the moment all the SNB has done is some jawboning, there hasnt been a franc used in anger.  

Tue, 09/20/2011 - 07:48 | 1688043 PaperBear
PaperBear's picture

“They have until March 20, 2013 to do so.”

They had better quickly collect the required number of signatures and than quickly take this referendum as I doubt the fiat paper currencies will live past March 20, 2013.

Tue, 09/20/2011 - 07:49 | 1688047 PaperWillBurn
PaperWillBurn's picture

Shouldn't take much buying to send it's price up to a level where it meets or exceeds 20%.


Just a statement of intent to purchase should do it

Tue, 09/20/2011 - 07:51 | 1688049 madgstrader
madgstrader's picture

if their situation is anything like the US it's already been sold. Bill Still on Keiser today covers the Fort knox vanished gold

Tue, 09/20/2011 - 07:53 | 1688054 fenner
fenner's picture

SVP vs. SNB? This referendum seems to be passed.

Tue, 09/20/2011 - 07:56 | 1688058 gratefultraveller
gratefultraveller's picture

From the quoted article:

"The remaining gold reserves should be stored in Switzerland. ... Because a part of the reserves is stored abroad, a situation seen as irresponsible by the initiative committee because of the exagerated indebtment of many countries"

In other words, is Switzerland about to pull a Chavez on the NY Fed and the LBMA, and force them to deliver "real gold" to Switzerland en lieu of the paper gold those guys have almost certainly kept on their accounts for Switzerland?


Tue, 09/20/2011 - 08:38 | 1688189 Smiddywesson
Smiddywesson's picture

In other words, is Switzerland about to pull a Chavez on the NY Fed and the LBMA, and force them to deliver "real gold" to Switzerland en lieu of the paper gold those guys have almost certainly kept on their accounts for Switzerland

A very good observation by GT made me consider that we don't really know how all this gold is tied together.  It is the nature of central bankers to tie everything together in multiple interwoven obligations.  It very well may be that any repatriation of gold by any country will lead to obligations being felt in NY.  If you pull on a spider's web, it is always felt at the center. 

Tue, 09/20/2011 - 07:57 | 1688060 sudzee
sudzee's picture

The Swiss population is approx. 8million. I doubt it would take more than a few months to get 100,000 signatures.

Tue, 09/20/2011 - 08:02 | 1688071 TradingJoe
TradingJoe's picture

yoou might want to reconsider "few months", more like few weeks!

Tue, 09/20/2011 - 08:00 | 1688066 Baptiste Say
Baptiste Say's picture

1,500 tonnes of gold is about $90 billion worth or naerly $13000 per Swiss citizen.


The SNB governors who oversaw that sale should be publically raped and then put to death by form of slow slicing.


Forget a constitutional clause to prohibit the sale of the gold, a clause should be passed which returns it to the people who had their income stolen to fund this accumulation, i.e. the Swiss taxpayers.

Tue, 09/20/2011 - 08:08 | 1688085 Ketsa
Ketsa's picture

except it was sold in 2004

Tue, 09/20/2011 - 08:44 | 1688211 Smiddywesson
Smiddywesson's picture

There were a lot of FX traders who saw their accounts stolen by the SNB recently.  I bet that hurt a lot more than learning the country's gold was sold in 2004.

Tue, 09/20/2011 - 08:11 | 1688096 fdisk
fdisk's picture

If you think "people who had their income stolen" in Swiss,

While Swissy Trades well above parity with the USD, then what

to say about Americans? That's who's been robbed for sure.

0% interest rate everywhere plus Dollar devaluation.

BTW even at 1.20 per EUR Swiss frank

still 20%+ overvalued and about 50% overvalued to the $USD

at least.

Tue, 09/20/2011 - 08:16 | 1688103 fdisk
fdisk's picture

NEW resistance for GOLD now $1795, Lower highs, looks like it might go all the way to 1550/oz, cause someone pushing SELL at every pop. Yesterday it TANK at 9:30AM looks like it's going to be same picture today

Tue, 09/20/2011 - 08:22 | 1688131 PaperWillBurn
PaperWillBurn's picture

I fucking hope so. I have some stacking to do

Tue, 09/20/2011 - 08:23 | 1688144 FranSix
FranSix's picture

Gold prices have some pretty volatile corrections, because of the price fixing mechanism.  But I would expect the price to test the 13-week EMA at the very least.  Prices should be very stubborn here at this point simply because of the discount rate popping into the negative or having the potential to do so.

Tue, 09/20/2011 - 08:50 | 1688231 Smiddywesson
Smiddywesson's picture

Yes, I would say anything is possible at this point, but they can't break gold or they would have already done so.  My guess is that it is very costly to drive prices lower, and every time they do so, China rushes in and buys.

They cannot allow gold to climb back within striking distance of $2000 while the EU is in flames.  If they can put the EU banking issue on the back burner for a while, the assault on gold prices is likely to abate.  However, if it is going to get worse, they will keep building a bigger buffer by suppressing gold as far below $2k as possible ahead of any impending bad news. 

Tue, 09/20/2011 - 11:06 | 1688785 PaperWillBurn
PaperWillBurn's picture

Your resistance got bitch slapped. I was hoping for a better exchange rate next paycheck.

Tue, 09/20/2011 - 08:18 | 1688119 takoumi
takoumi's picture

the headline is misleading

regarding the content, my bet is when lighthouse asset management is liquidated the referendum will still be in the pipes

Tue, 09/20/2011 - 08:19 | 1688121 Quinvarius
Quinvarius's picture

So, the Swiss central bank stole the people's gold and sold it?  Same as the Dutch a couple days ago?  All this along with what we know about Canada and England selling theirs.  How long before the USA fesses up?  Central bankers around the world stole the people's wealth.  Why am I not surprised?

Tue, 09/20/2011 - 08:36 | 1688180 fdisk
fdisk's picture

Bernank says GOLD is the tradition, so US probably holds
Gold painted lead bars instead of GOLD in Fort Knox.

Tue, 09/20/2011 - 09:00 | 1688270 Roger Knights
Roger Knights's picture

"How long before the USA fesses up?"

It could be soon, if Ron Paul (or other GOP contenders) make a campaign issue of it. They should.

Tue, 09/20/2011 - 09:01 | 1688273 Smiddywesson
Smiddywesson's picture

My guess would be that soverign gold was used to suppress gold prices, not enrich TPTB.  They have all the money and power they could ever want, they just needed the gold to suppress gold prices and maintain control of the system.  Now that the system is coming to an end, that gold is no doubt being replaced on the sly, while central banks are also engaged in overt gold purchases.  They have had 3 years to stonewall, knowing that the old system is nearing an end.  TPTB intend to remain TPTB, they would be stupid not to replace the gold before having to account for it. 

Stealing our paltry gold horde is chump change next to using it to control the system so that they could slowly suck the life's blood out of a $13 trillion economy.  It was never about stealing the gold.  The gold was just the keys to the kingdom.  It was never about the value of the keys themselves. 

Tue, 09/20/2011 - 08:23 | 1688145 TheMadNumismatist
TheMadNumismatist's picture

I am pretty sure they had to sell to pay Jewish dormant accounts from WW2 or as reparations for laundering NAZI gold.

I have often wondered: if they had not sold the 1500 tonnes, and the Swissie was still backed by gold, what would this mean taking into account gold’s rise.

Seems pretty coincidental the sales occurred just before Browns Bottom.

Tue, 09/20/2011 - 08:35 | 1688176 Darth Silver
Darth Silver's picture

SNB is getting wise to the status and quantity of gold it has and should have.  Dutch are asking questions about their gold.  Venezuala....; have they received their gold yet.  some form of QE is imminent.  countries keep printing fiat............

yet someone(s) are keeping the price of gold and silver down?  amazing.  when the music stops on this one, there may be negative chairs left.  its unleased physical or it could be phantom.....

protect wisely

Tue, 09/20/2011 - 09:07 | 1688295 Smiddywesson
Smiddywesson's picture

Yes, the price action of gold and silver completely discredits 99% of the trading books out there and all the phonies that wrote them.  Trading is about knowing who the mark is and what scam is being used to fleece him.  Plain and simple, that's the birds and the bees of trading.  After this full retard market abomination example, anyone who thinks otherwise can STFU.

Tue, 09/20/2011 - 08:35 | 1688177 bernorange
bernorange's picture


Tue, 09/20/2011 - 08:41 | 1688197 eddiebe
eddiebe's picture

The way I understand it is that at the time the Swiss gold was sold a few years back, under the then existing Swiss law, Switzerland was to hold 33% of it's foreign exchange in gold. As the price of gold had risen a portion of gold was sold and the proceeds were in part used to bolster the Swiss pension and health insurance plan.

 I don't know what happened to bring gold holdings down to 16%, but my guess is that the swiss national bankers were seduced ( like I would imagine all other central bankers around the globe ) by the ability to 'print wealth'.

I doubt the Swiss people will stand for having their gold hoard decimated further. But then again almost anything is possible to achieve by those in power if they are able to squeeze the population hard enough. We can only hope that people around the world stop bankers and their political lapdogs from grabbing all power from the host they prey on.

Tue, 09/20/2011 - 08:44 | 1688203 PulauHantu29
PulauHantu29's picture

China & India buying gold as the old, worn out western nations selling....mmmm.

Something to examine closer, eh.

Tue, 09/20/2011 - 09:09 | 1688310 Smiddywesson
Smiddywesson's picture

You can't have a sustainable system of trade unless their standard of living rises and ours falls.  You can't make an omlet without breaking a few eggs.  Hot dogs and beans anyone?

Tue, 09/20/2011 - 08:44 | 1688214 outsidertrader
outsidertrader's picture
How does this complicate "the SNB's dream to manipulate the EUR/CHF exchange rate"? The SNB simply sells for gold some of the FX reserves that it accumulates from CHF intervention. What's complicated about that?
Tue, 09/20/2011 - 08:49 | 1688228 Roger Knights
Roger Knights's picture

Referendums elsewhere in Europe on monetary / euro issues may be the wave of the future. They'd get politicians off the hook for unpopular decisions.

Tue, 09/20/2011 - 09:11 | 1688320 Smiddywesson
Smiddywesson's picture

Absolutely.  This is a rape, and rape victims don't get a say in the matter.  They will print, and create debt, and kick the can until they are good and ready to push the reset button. 

Tue, 09/20/2011 - 09:10 | 1688316 mayhem_korner
mayhem_korner's picture

They're pushing for a pardon and the vultures are already at the gallows pecking at the carcass.

Tue, 09/20/2011 - 09:24 | 1688378 THE DORK OF CORK
THE DORK OF CORK's picture

The SNB is the most private of private CBs - it gives tribute to the various cantons - but it owns the stuff - however it operates in Switzerland with the consent of the various valleys in Switzerland.

Tue, 09/20/2011 - 10:21 | 1688590 swissaustrian
swissaustrian's picture

49% of all shares are traded publicly. Average intraday trading volume is 10.

I own some.

Tue, 09/20/2011 - 09:31 | 1688403 slugbait21
Tue, 09/20/2011 - 11:03 | 1688769 jimmyjames
jimmyjames's picture

Now if Canadians would just follow suit


I tried to post a comment on that site using openid-


Tue, 09/20/2011 - 09:52 | 1688473 Temporalist
Temporalist's picture


Save Our Gold!

Tue, 09/20/2011 - 10:03 | 1688518 Tedster
Tedster's picture

In 1990 a (Swiss made) Katadyn pocket filter cost me $225 at the Seattle R.E.I. - today they are about $250 to $300 depending. In 1990 gold averaged about $400, if the Swiss had not loosened their monetary policy (as the argument goes, not saying I agree) then that same water filter would cost close to $1200, say.

Since that time a number of competitors have arisen, for many decades they were essentially the only available manufacturer of portable water filters. Guess I bring this up as an example of why countries want to weaken their national currencies in order to be able to export and remain competitive albeit only temporarily.

Tue, 09/20/2011 - 12:38 | 1689204 Vendetta
Vendetta's picture

Thanks.  I was just looking those things over last weekend as part of my survival kit

Tue, 09/20/2011 - 10:03 | 1688519 Bansters-in-my-...
Bansters-in-my- feces's picture

If it DON'T pass,the people have been drugged.

Tue, 09/20/2011 - 10:20 | 1688583 swissaustrian
swissaustrian's picture

This is the first ever constitutional initiative by the SVP that makes sense.

Looks like somebody read Ferdinand Lips, gold wars.

Tue, 09/20/2011 - 10:59 | 1688756 Paul67
Paul67's picture

This is why I also hold ‘physical’ Silver and Platinum in addition to Gold.  When the governmental panic hits a country near you it will likely be 'illegal' to sell Gold there as well and for the same reasons.


Silver and Platinum, like Copper, on the other hand stand a good chance of still being considered 'industrial' metals, the sale/free flow of which is critical for production and yet should still be sympathetic to any inflationary based rise in the price of Gold.  Plus if they shutdown the free flow of Gold at market prices, any metal still useable as money (high value per oz) legally should get a boost above is mining cost as well.


Besides I have to ask what good is big pile of Gold unless you can use it to buy stuff?  It seems to me that rule works just as well for countries as it does individuals?  I mean can it still be considered money if it never circulates among individuals and nations?


So not to take anything away for Gold, but it’s important to have a diverse precious metals portfolio because when you need to sell it the most it may be illegal to do so.  Then again for all I know the freegold guys could be right in which the Gold price per oz rockets up and forms the basis of reconciling global trade imbalances.  Then again maybe not or at least you won’t be allowed to legally enjoy that benefit like what FDR did with Gold (ie confiscate low, hold high).


Reminds me of the a line below in the Blues Brothers movie;


Elwood: What kind of music do you usually have here? Claire: Oh, we got both kinds. We got country ‘and’ western.


What kind of money do you usually take here?  Oh we take both kinds.  We take Gold ‘and’ Silver.

Tue, 09/20/2011 - 11:11 | 1688820 PaperWillBurn
PaperWillBurn's picture

No confiscation in our future


"Well, if the US ever put gold back on the table through another confiscation of its citizens' gold, the BIS would call in all of its outstanding claims in gold at the rate of $42 per ounce. And the BIS would not be alone. Other entities would have legal claims for gold at $20.67 per ounce, and others at $35 per ounce. How much gold was either confiscated or defaulted on without due process of law? Claims of perpetual entities never go away. If the US government ever exposed its own gold (or its citizens' gold through confiscation) to the light of day, it would expose itself to all kinds of claims and an international legal mess. Under international law, the US is still an OUTLAW when it comes to gold!"

Tue, 09/20/2011 - 13:42 | 1689431 Paul67
Paul67's picture

"the BIS would call in all of its outstanding claims in gold at the rate of $42 per ounce.”

And the BIS would be told to go pound sand by the UST, your point?

This is just another variant of ‘counter-party’ risk. Possession is 9/10ths of the law, is it not? I might add that all Gold held on behalf of other nations has the same counter party risk which nicely explains the recent actions of Venezuela.

Again the Swiss could be the canary in the mine at what ‘could’ happen with Gold should things get out of hand. Which in my book is the whole reason for owning precious metals and other even more important SHTF assets like bullets and beans in the first place. ‘IF’ the free exchange of Gold ends between nations it will necessarily end between individuals within nations as well. At which point my central point stands, whatever you may call money needs to freely circulate in order for it to be money.

Again not saying that Gold won’t go to 50K/oz and equally important that an ordinary Joe will be allowed by the powers that be to capitalize on that appreciation, just saying that Gold may be a bit too “traditional” for the establishment to server as money for the common man, that is all.

I could also see a scenario in which everyone sits on their Gold and makes the transaction illegal, including the common man, until the price is sufficient to permit its free flow again. In this case you just hold on to until the concepts behind freegold final take root and everyone sees the value that free exchange of gold at market prices can do for world trade.

Anyway, the very reason I hold precious metals at all is for insurance against the actions of my own government and the complete collapse of international agreements in general. Which also means I don’t want all my eggs in one basket, including just one type of PM. Stating the BIS agreements will have any power during and after the collapse is to ignore the whole reason one places ‘tradition’ ahead of promises in the first place.

Tue, 09/20/2011 - 11:22 | 1688885 Dingleberry
Dingleberry's picture

Hey Swiss,

If you are gonna run a peg, you are gonna lose your gold. Directly or otherwise. Unless you have a massive trade surplus. Which you don't. Criminal deposits don't count, as they can be sent to the Caymans. Sad....but true.

Tue, 09/20/2011 - 11:30 | 1688918 AnAnonymous
AnAnonymous's picture

The great gold hoarding...

Control of money supply is done both ways: by injecting or withdrawing...

Tue, 09/20/2011 - 12:39 | 1689209 Vendetta
Vendetta's picture

Why not just pick up 2500 tons of spam in lieu of the gold,  Roubini thinks it a good choice.

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