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Turkish Government "Goes For Gold"; Seeks To "Transfer" Private Gold Holdings Into Bank System
Gold may not be 'money' to the Chairman, but it sure is to Turkey. The WSJ reports that "The Turkish government, facing a bloated current-account deficit that threatens to derail the country's rapid expansion, is trying to persuade Turks to transfer their vast personal holdings of gold into the country's banking system." The reason: "The push to tap into the individual gold reserves—the traditional form of savings here—is part of Ankara's efforts to reduce a finance gap that is currently about 10% of gross domestic product." In other words, "sequester" the population's hard assets (politely of course), and convert these to paper to fund the country's creditors, both foreign and domestic. Mostly foreign. In other words, Southeast Europe is slowing becoming the staging ground for the 21st century equivalent of Executive Order 6102, where first Greek, and now Turkish gold, is about to be pulled from point A to point B, where point B is some top secret vault deep under London.
How will Turkey spin gold confiscation in the politest of ways? The WSJ has details:
Government officials say the banking regulator will soon publish a plan to boost incentives for consumers to park their household wealth inside the financial system. Banking executives said they are considering new interest-yielding gold-deposit accounts that would allow savers to withdraw gold bars from specially designed automated teller machines.
The moves come after the central bank in November announced that lenders could hold up to 10% of their local-currency reserves in gold, in part to tempt Turkey's gold hoarders to deposit their jewelry, coins or bullion at banks.
Economists say the policy shift is designed to change Turks' historic preference for storing a high percentage of personal wealth outside the banking system as a way to protect themselves against the economic volatility that has periodically hit Turkey in recent decades.
The effort is one front in a broader battle to encourage more savings while curbing the ballooning current-account deficit—a pressure point many investors fear could upend a fast-growing economy, estimated to have expanded more than 8% last year. Turkey's current-account gap has expanded faster than expected in recent weeks amid a surge in oil prices and data showing unexpectedly high consumer demand.
We wish them luck:
For some Turks, the government will have to unveil a lot more sweeteners before they part with the family gold.
Because what may not be apparent to a Princeton Ph.D., is more than obvious to a 70 year old housewife in Istanbul:
"I'm keen to save, so keeping gold at home is easy for me; there is no complicated procedure," said Ayten Altin, a 70-year-old housewife in Istanbul. "In an emergency, I can convert it to cash and I don't have to wait for the bank to say the asset has matured."
Q.E.D.
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April Fools Day is early this year
Freegold approaches, and Turkey is worried.
Why do central banks want to take citizen's gold? Tradition.
Fuck Them! Am buying more gold after this news
Buy your gold on the black market. Make sure the purchase is untraceable. The barbaric rellic will soon be confiscated, under Big Brother Obama's latest Executive Order. 55.3 % (2,104 tonnes) of all gold is held in consumer-type gold products (jewellery, etc).
My suggestion? Don;t buy gold from a dealer. Set up your own "I pay cash for scrap gold" business. You may even get gold at a discount.
Keep it untraceable, bitchez!
CY2010
Above ground stocks - 166,000 tonnes...
Unaccounted - 3,600 tonnes...
Check some of those banks in Portugal and South America...
Show me where to start lookin'...
What they are really "asking" for is lead.
FRN's are not money their exchangeable notes...obligations
Deutsche Bank is building a huge new gold vault in London to service the foreigners resident there - so I suppose the rich Turks will already have melted down their gold statues of Erdogan and need something else to put in its place when his Tax Inspectors come raiding.
Sorry I have no gold to deposit today. Would you accept 25 gallons of Tide instead?
Even if they got all the people's gold, the stupid bastard government would piss through it in a year, then what, your children? It's like some loser at the poker table saying: stake me! Ill win next time, I know it!
Hmmm, interesting that they are trying to "entice" gold into the "banking" system. Could it be they are afraid of what would happen if they sent someone to take the old ladies gold? Do they fear her relatives reactions? Do Turks retain their traditional fondness for the blade?
Methinks there is the odor of flopsweat regards fiat currency all over the world.
Humor me here a minute. My theory is that gold (long term) is a sure loser because the government will inevitably seize it when they think the time is right. You'll be paid something more than what it's worth today but not nearly what it will be worth at that time. My approach is to have a very nice supply of junk silver (good luck to the government trying to confiscate all junk silver) and instead of putting too much money into PM's we are buying anything and everything we can imagine needing in the future.....such as food storage, debt free land/home, medical supplies, vehicles, tools, more fruit trees, water wells, survival goods, etc, etc. What good is gold if it's taken away from you and who needs to be trying to sell it later for a "profit" when it will be taxed at some hellish rate in order to buy things that have suffered from horrendous inflation and could have been bought now at a "reasonable" price? Anybody here agree with me?
Mondo agreeo
I agree. I especially like junk silver too.
I think having both, i.e. resources/materielle & PMs is best. Firstly, even in overly controlled & quasi-fascist states (of which several of the leading 'democracies' are in all but name..) outright confiscation would be next to impossible. Think back to Nazi occupied Europe - people & resources were even hidden from that regime all over Europe for nearly 10 years - how would any sort of attempt pan out these days? Wouldn't be much more successful imho. Effective 'confiscation' via stringent buying/selling laws & sales/windfall taxes? Well, look back to any period of blackmarket operation (notably, Prohibition in America) or punitive tax regimes - options exist or very quickly evolve to circumvent/avoid these measures to a great extent. Not that I don't think the above measures won't be attempted/implemented, just that I don't think they'll work as intended.
So what are we left with? A quasi-currency in PMs operating under the radar - a black/grey economy in effect - with PMs as the currency of choice, completely by-passing govt. accountable mechanisms.
This effectively happens now, but the perps are be-suited 1%-ers talking with their accountants & off-shore fund managers/fixers etc. So nothing to to frighten the horses there. In a more modest way, I already have my lifetime supply of washing powder/wash-up liquid/dried food goods sorted - and I'm working through the list. Things are cheap at the moment - I can walk into a store & easily afford all the matches/lamp oil/candles I'll ever need tomorrow with just my 'loose change'. I'd say do the same to any other of the 99%-ers out there.
Question:
As the dollar falls in value...like 18 months ago 5 pounds of sugar was $3.25 and now 4 pounds of sugar is $4.00...a 35% decline in value.
Keeping the dollar in the proverbial mattress, bank etc means one is losing value.
Are gold and silver currently losing value priced in dollars?
For the investor who does not participate in the stock market, where should value be stored to take advantage of these conditions?
You want something that is bothe liquid, and tradeable. Junk silver will still remain highly tradeable in the future. I know people that buy hundred's of dollars of coins from the bank every week to extract the old coins, they take the junk silver out, replace it with regular coins, then resell the coins back to the bank, then start over again.
If you do not have the time to do this, then buying already put together junk silver bags is a good idea. I personally stay away from gold because I am poor, and I am not able to invest in it. It depends how much you have to transfer from one form to another. My personal belief is that if you have enough supplies to survive 6 months after an emergency, then all you will need is 20% of you current assets to restart once a new system takes hold. This current system is not designed to be fair, so there is no need for you to invest in it. It is better to preserve what little wealth you posses. Silver, Sterling silver, supplies, guns and ammunition, transportation, land where an extensive garden can be grown. More importantly, protection from moving masses. The farther away you will be from a major urban center, the better it will be for you. anything more than a 1 day walk is a good place.
It seems there to be a flaw in the logic of hoarding gold, both before and after the "apocolypse". Before the breakdown of society there is the possibility of governmental confiscation with force. After the breakdown the strongest may just take it from you. But you say I have my gold well hidden and it is untraceable. But then what good is it? You can not eat or drink it, at some point you may want to take out your shiny gold and trade it for the things you desire. At that point the other actor in the trade can snitch you out and you may come under intensive interrogation by governmental agents or bandits to disclose the source of your gold. Or you may say, I will meet them with a storm of lead should they try to take my gold. To which they say, "meet my little friends the hellfire missile and GAU-8 Avenger". This is a dilemma for anyone who has something that others might want badly.
Another reason to not hoard.....troll snitches who will rat you out.....after they turn in their gold like all "Good Germans" should ! Monedas 2012 Turkey....the best of Islamo-Fascism and Keynesthink combined in one big ball of camel dung wrapped in tobacco leaves !
the flaw in your logic is to expect some sort of crime/threat-free environment in a collapse when we don't even have it now under the auspices of the .gov. ATM they just rob you in the street for your cash and jewelry or through inflation of their fiat, so what's the diff? life itself is risk, Darwin was right.
ATMs that spit gold, or not. Music chair game bitchez.
Will Obama pledge to not use water boarding to confiscate our gold ? Monedas 2012 Comedy Jihad World Tour
" Banking executives said they are considering new interest-yielding gold-deposits"
Pssttttt...Warren.......did you hear that.
You too Benny,are you listening?
You don't consider paying interest on wheat or corn if youare a banker,but you will consider paying interest on Gold(money).
Reminds me of the Roosevelt Gold Confiscation Order of April 3, 1933. Actually, we have an anniversary coming in a few days don't we. I, for one, would rather chew on gravel like its popcorn than give my hard-earned PM to the State ! Take note that Sweeden is going to a cashless society and the TSA in the US is questioning people traveling with Gold, cash or anything of value, as if it is any of their business ! You want my Gold, here's a stream of vitamin-enriched yellow piss for you to cup.
I will turn in my Fiat (buy goverment bonds) if they pay interest in worthless, barbarous relic gold ! Monedas 2012 How likely is that ?
The WHOLE POINT of owning gold is to AVOID the banking system. When will the geniuses in the media figure this out?
When will the geniuses who store their gold in bank "safety" deposit boxes figure it out? It's like putting a "Rob Me" sign on one's back!
Totally bogus article, but what else would you expect from the likes of the WSJ?
Turkey is in the midst of a major credit expansion, as the current generation of mindless bot consumers is encouraged to mortgage the family property in order to show the neighbors how high livin they be. Not a lot different than in Greece, Italy, or wherever, the human propensity to consume more than they produce is encouraged and abetted to the long term detriment of all. I watch my neighbors ride their motorbikes to the field, to collect the cows, Walking is unheard of. That's with gasoline north of $12.00 gal and rising. People are fat, unfit, and worn out by the age of forty.
Everybody, however, from the poorest goat herder to the grandees in Stanbul holds a sizeable part of their wealth in physical(gold-silver is almost unknown) For those that want the best of both, the banks offer XAU accounts - up until the latest period of hyper manipulation the y-o-y for that critter was 40-44%....versus the 10-12% term deposit. If you understand basic economics, are healthy and able to work hard to create a traditional farm lifestyle, this is the final frontier, amigo...build your stash and invest some of the profits in growing your herd. The grass is gettin lush right now, and the background noise from the (un)real world is just a distant whisper. If folks only knew, they'd be here in droves. But you get all that bullshit bout Muslims n such. Pity.
There's nothing going on with gold newsworthy at all except this: Turkey needs Iranian oil, and the pressure is HUGE from you know who to tow the line on the embargo. Gold is a work around, and sure the government is trying a few tricks to scratch some up...but you'll see gold confiscation in the fallen lands of imperial Euromerika long before it happens in Turkey.
It is nice to vacation in Turkey and bargain down to realistic prices in Lira - but the latest stunt of pricing in Euros shows laziness. They expect stupid Europeans to pay Euro prices forgetting that Norwegians and Britons do not use Euros so have to do a double-conversion and find prices outrageous. Turkey gained custom because Greece ansd Italy were EuroZone and then screws itself by getting greedy for Euros - so now more Russians than Germans are going to Turkey
'Turkey needs Iranian oil, and the pressure is HUGE from you know who to tow the line on the embargo. Gold is a work around, and sure the government is trying a few tricks to scratch some up...but you'll see gold confiscation in the fallen lands of imperial Euromerika long before it happens in Turkey.'
Pepe says affirmative:
http://www.atimes.com/atimes/Central_Asia/NC23Ag04.html
Makes sense, Turkey in prime position. Turkey is neither 'secular' nor 'Islamic' in some ways I wish I could set up shop there...
Is Sweden's going all digital currency a form of "Virtual Confiscation" by marginalizing PMs ? The Fiati still have a treasure chest of dirty tricks ! Europe is being squeezed by the pincers of the Ankara-Stockholm axis ! The Fiati's feigned indifference to gold is melting away ! Monedas 2012 The worst is yet to come !
I'm sure the Turkish Government will understand completely when nobody wants to go along with this and will let their citizens keep their gold.
Hahahahaha...hah!
This quote made me laugh:
"I'm keen to save, so keeping gold at home is easy for me; there is no complicated procedure," said Ayten Altin, a 70-year-old housewife in Istanbul. "In an emergency, I can convert it to cash and I don't have to wait for the bank to say the asset has matured."
For two reasons:
1. The lady's last name "Altin" is the word for gold in Turkish. (Actually, the Turks have 2 forms of the letter "I". One has a dot and one does not. The "I" used in gold has no dot.) I think this lady does not exist and is a trick played by the editorial board of the WSJ.
2. Yeah, right, they just grabbed some random 70-year old lady who could talk readily in terms of waiting "for the bank to say the asset has matured."
You are correct. Journalism has sunk to such a sorry level that they literally just make stuff up on demand. No wonder there is such a degree of international tensions...nobody gets any real news about what other people are thinking or doing anymore.
All spin, all the time.
Noone ever said journalism was nonfiction.
lol - yeah that was James Turk wearing a bhurka.
let's see if the turks are fucktarded enough to fall for it....if turkey's whoremasters don't succeed, nato will launch ground troops to get it....
in fact, the only reason iran is going to be invaded is because iran is defying the usd.....no other reason whatsoever....
"Banking executives said they are considering new interest-yielding gold-deposit accounts that would allow savers to withdraw gold bars from specially designed automated teller machines. "
Withdraw gold bars through an ATM machine!!!!!!!!!!!
LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL.