Will India Implement The First "Executive Order 6102" Of The 21st Century?

Tyler Durden's picture




 

Something strange has been happening in India in the last year: while the rest of the "developed" world has been doing all in its power to crush its currency in order to promote exports within a globalist mercantilist system suddenly gone haywire, India has had the opposite problem: with its economy slowing down even as rampant inflation persists, its currency has been sliding against all other currencies. But probably more importantly: plunging against gold, as can be seen on the chart enclosed.

It appears that finally after months of "being long of Gold in Indian Rupee terms" having proven to be quite a resilient and profitable strategy, the Indian state has also figured it out. And they are unhappy. Because to them, the key reason for the rupee weakness has nothing to do with the actual economy, and all to do with the Indian population trying to protect against currency debasement coupled with inflation: i.e., purchasing gold. And they will no longer allow it.

From The Business Standard of India

The Reserve Bank of India (RBI) is likely to clamp down on gold coin sales by banks, amid rising bullion imports adding pressure to the current account deficit and weakening the rupee.

 

The Banking Regulation Act does not allow banks to trade in commodities and they play the role of a financial intermediary. This norm was relaxed in the pre-2008 era when the country saw a dollar influx that resulted in a sharp appreciation of the rupee. To sterilise dollar inflows, banks were allowed to sell gold, as they imported the yellow metal. The measure was temporary.

 

Banks were allowed to sell gold by importing it to fight the excess dollar flows. By the same logic, the measure should be reversed now as we are at the opposite end of the spectrum. It was a temporary measure, which unfortunately was made permanent by banks,” a top RBI official said.

 

The rupee has depreciated 30 per cent since August amid the sovereign debt crisis in the euro zone, which made investors flee to safer havens. Weakening macroeconomic fundamentals like the fiscal and the current account deficit have resulted in investors pulling out from the Indian market.

 

In its recent interactions with bankers, the central bank sounded its discomfort over the practice of banks pushing gold coin sales and asked them to go slow. However, banks have not stopped the practice of incentivising their staff to push gold sales, as they earn a margin of Rs 100-150 per gramme of gold sold.

Sadly, India's reaction which does nothing to address the actual source of the economic malaise will backfire, as acts of economic desperation always do. However, the next step will be even sadder, and one known rather well to most American alive between the two world wars: the first instance of Executive Order 6102 in the 21st century. Because again, he who defects first from a regime that pretends to allow fair price discovery of currency substitutes, defects best.

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Wed, 06/27/2012 - 15:32 | 2566046 0z
0z's picture

Freeeeeeeedoooooooooommmm!

Wed, 06/27/2012 - 15:34 | 2566051 Pladizow
Pladizow's picture

Uninforcable!

Wed, 06/27/2012 - 15:37 | 2566070 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You can't buy gold, or else.....or else.....

....OR ELSE!

Wed, 06/27/2012 - 15:39 | 2566076 battle axe
battle axe's picture

Give me your gold. The Indian Gold Finger.....

Wed, 06/27/2012 - 15:59 | 2566154 Popo
Popo's picture

It's one thing to steal someone's wealth by currency debasement.  It's another thing to force someone into a scenario where you confiscate their wealth.

The word is "Opression".  Plain and simple.

Wed, 06/27/2012 - 17:06 | 2566412 Paul Atreides
Paul Atreides's picture

There is no record of anyone ever being arrested or charged under Executive Order 6102. It's just a scam to get gullible peons to hand over their gold, they will never be able to forcefully confiscate it with all the boat, gardening and vietnamese hooker accidents.

Wed, 06/27/2012 - 17:12 | 2566441 Camtender
Camtender's picture

Frederick Barber Campbell would disagree with you. He was indicted and lost 5K gold ounces to the federal gov.

Wed, 06/27/2012 - 17:27 | 2566489 flacon
flacon's picture

For a traditional barbaric relic, that yellow metal sure has governments in a tizzy. I really just can't figure it out. Must be something in the Ganges water that makes people want to buy it. /s

Wed, 06/27/2012 - 18:30 | 2566660 Temporalist
Temporalist's picture

Confiscation is a tradition.

Wed, 06/27/2012 - 19:14 | 2566778 sitenine
sitenine's picture

This is interesting as well: "Breaking News: Regulators to Classify Gold as Zero-Risk Asset"

http://m.financialsense.com/contributors/john-butler/breaking-news-regul...

Something very interesting is happening here.

Got Gold?

Wed, 06/27/2012 - 19:32 | 2566823 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Another 3rd world dump. Whatever.

Thu, 06/28/2012 - 00:01 | 2567348 engineertheeconomy
engineertheeconomy's picture

The truth is that Central Bankers love to buy Gold, but hate it when the general population buys Gold.

 That would be because it makes their paper look like the paper that it really is.

So the Central Bankers in India are playing the violin, do they really want us to feel sorry for them?

Thu, 06/28/2012 - 00:55 | 2567411 merizobeach
merizobeach's picture

As opposed to another 1st world dump?  Whatever, exactly.  How's the vantage from your shithole--does the horizon swarm with brainless Walmart shoppers??

Wed, 06/27/2012 - 19:41 | 2566843 dexter bland
dexter bland's picture

Or perhaps its the commercials promising an affluent Bollywood lifestyle to any p.o.v. who takes out a high LVR loan to buy gold?

 

 

Wed, 06/27/2012 - 21:11 | 2567039 mick_richfield
mick_richfield's picture

 

Must be something in the Ganges water that makes people want to buy it

When I think about what's in the Ganges water, it makes me want silver a lot more than gold.  In the form of a filter.

Thu, 06/28/2012 - 03:31 | 2567519 rsh00
rsh00's picture

That's right...It must be the ganges...or maybe even the heat and humidity that has kept us from becoming 'civilized'. Most western folks (or even westernized Indians) are still confounded by our total fascination and love of gold. India of old was called 'sone ki chidiya' (The Golden Sparrow), and sadly, subject to dozens of invasions by middle east bandits who came just to plunder all that gold.

Wed, 06/27/2012 - 16:11 | 2566210 CommunityStandard
CommunityStandard's picture

Indians LOVE their gold.  The mandate is completely anathema to their culture.  It's like telling us Americans we can't buy large sodas anymore....  oh wait.

Wed, 06/27/2012 - 16:16 | 2566227 idea_hamster
idea_hamster's picture

lulz...

Wed, 06/27/2012 - 19:18 | 2566793 FreedomGuy
FreedomGuy's picture

You will NOT buy gold. You Will buy health insurance. You will NOT buy a Big Gulp. You will buy car insurance. You will NOT buy...80,000 pages more.

It's great to be a free people with free markets, right?

The truth is that 100% of the people are ruled now. No one is free. You may be ruled by a pseudo-democratic process or the venerated and proven good old fashioned dictator...but you are ruled and have no inalieanable rights that cannot be overruled. Do your best.

Wed, 06/27/2012 - 21:12 | 2567041 mick_richfield
mick_richfield's picture

I will NOT obey tyrants.

Wed, 06/27/2012 - 22:14 | 2567141 Skateboarder
Skateboarder's picture

Just by happening to exist, you already do, unfortunately. There are no free men - we're all in this ugly fucking game together man.

Thu, 06/28/2012 - 00:57 | 2567417 merizobeach
merizobeach's picture

Do you pay their taxes?

Wed, 06/27/2012 - 21:53 | 2567114 Bansters-in-my-...
Bansters-in-my- feces's picture

Also kinda like telling Americans they can't buy guns and ammo.

Wed, 06/27/2012 - 15:40 | 2566080 DoChenRollingBearing
DoChenRollingBearing's picture

Molon Labe!

Wed, 06/27/2012 - 15:51 | 2566122 DoChenRollingBearing
DoChenRollingBearing's picture

This is as good a place as any...  I write about the the dangers of complicated THINGS...  Wait until I visit the topic of complicated systems...

http://tinyurl.com/83flkz9

Wed, 06/27/2012 - 16:07 | 2566197 Ancona
Ancona's picture

I lost all of my PM's in a boat accident involving several vietnamese hookers, a bottle of Johnny Walker Black and four watermelons.

Very tragic.

Wed, 06/27/2012 - 16:09 | 2566203 Cognitive Dissonance
Cognitive Dissonance's picture

What were the watermelons for?

Never mind. I don't want to know. :)

Wed, 06/27/2012 - 20:32 | 2566949 rosiescenario
rosiescenario's picture

.......as the Arabs say, small boys for fun, women for children, and mellons for ectasy.....

Wed, 06/27/2012 - 23:51 | 2567329 Harlequin001
Harlequin001's picture

Really, I didn't think the Arabs' spoke English...

Wed, 06/27/2012 - 16:22 | 2566250 Rahm
Rahm's picture

That was a tragic day when our boats collided :(

 

Lost all my pm's and guns.

Wed, 06/27/2012 - 16:58 | 2566386 Coast Watcher
Coast Watcher's picture

Who knew three boats would try to occupy the same space at the same time? At least your hookers made up for the loss of my PMs and ammo. And the watermelons -- O.M.G. that was amazing! I didn't know that was possible.

Wed, 06/27/2012 - 18:10 | 2566612 lasvegaspersona
lasvegaspersona's picture

wait just a minute...

you say FOUR watermellons?

what kind of fools do you take us for?

Wed, 06/27/2012 - 22:32 | 2567181 jerry_theking_lawler
jerry_theking_lawler's picture

wow! never had any PMs on a boat.....but my long dead cousin Jimmy, whom I have a key to his PO box, bought alot of PMs with cash and MOs and had them sent to our shared box. so, technically i don't 'own' any PMs....just storing them for my poor cousin Jimmy.

Wed, 06/27/2012 - 16:10 | 2566206 Goldilocks
Goldilocks's picture

Clarke & Dawe
http://www.youtube.com/user/ClarkeAndDawe

Clarke and Dawe - Top Flight News Story #236b
http://www.youtube.com/watch?v=O-nKJFjYkHg (2:30)

Clarke and Dawe - Articulating an alternative vision for the country
http://www.youtube.com/watch?v=z3wKCzIw5Gs (1:48)

Clarke and Dawe - The European Crisis
http://www.youtube.com/watch?v=OrhJcqgXrlw (2:44)

Wed, 06/27/2012 - 16:24 | 2566257 4horse
4horse's picture

in other words . . .

mumbai

shot-in-the-dark, right . . .

that the first guy killed, karkare, just happed to be india's terrorism chief

http://www.pharosmedia.com/india-books-bookstore/Book_Book_on_Islamic_Terrorism_in_India_Who_Killed_Karkare.htm

 

What most Indians think of as British Raj is in reality the Rothschild Raj. The British empire was the Rothschild empire.

It has been British policy since the Revolt of 1857 to keep Hindus and Muslims divided . . . For this purpose, they created the Indian National Congress (INC) with the help of Allan Octavian Hume, a member of the occultist Rothschild front Theosophical Society. INC was expected to keep India as a British dominian with a nominal democracy formed by a small subset of the population . . .

When INC began to go out of their control, they promoted the Muslim League and the "Untouchables" league led by Ambedkar. They also created Muslim League's anti-thesis, the Hindu Mahasabha. Hindu Mahasabha gave birth to RSS, VHP, and BJP. The Muslim League and Hindu Mahasabha together killed almost a million people in the riots that followed the partition of India - to imply the Indians were incapable of managing their own destiny and needed British rule to live peacefully.

Even after India became independent, it was a Rothschild stooge who became Prime Minister - Jawarharlal Nehru, a freemason. Other contenders were eliminated. Gandhi, even though he was refused to take up office, was killed by an ex-RSS man Godse.

For Jammu and Kashmir, Nehru and Mountbatten enacted a drama, which allowed Pakistan Army to invade and occupy a part of Jammu and Kashmir - at a time when both Indian and Pakistani armies were led by British officers. Instead of driving out Pakistani invaders, Nehru forged a Instrument of Accession that gave Pakistan a leg inside the door of Kashmir. To make matters worse, Nehru being the great "internationalist" that he referred Kashmir to the United Nations where Britain promptly sided with Pakistan. It is because of Nehru's perfidy that prevented India and Pakistan from having friendly relations. He also ensured that Pakistan's Army became sole arbiter of the fate of that country. Jinnah probably got bumped off by the Rotschilds, for his usefulness had run out . . .

Nehru's perfidy was not limited to Pakistan. In China, Rothschilds betrayed their stooge Chiang Kai-Shek and allied with a more nutty variety named Mao Zedong, who lead the Communist party of China . . . into genocide's alltime allhell

http://www.vsubhash.com/article.asp?MV-RFM-IE=on&id=12&info=The_Rothschilds

 

.

 

and, history, in case you missed it . . . honkonged, shanghai'd and long since sino-sassooned
In 1829 . . . the Sassoon family fled to Bombay, India. This was the strategic trade route to interior India and the gateway to the Far East. In a brief time the British government granted Sassoon "monopoly rights" to all manufacture of cotton goods, silk and most important of all ? Opium ? then the most addictive drug in the world!

The Jewish Encyclopedia of 1905, states that Sassoon expanded his opium trade into China and Japan

http://www.israelect.com/reference/WillieMartin/Sassoon_Family.htm

Wed, 06/27/2012 - 19:37 | 2566835 Bringin It
Bringin It's picture

The Boston Tea Party was about throwing East India Company tea into the harbor.  Sam Adams and the boys new the score back then.

Thu, 06/28/2012 - 03:45 | 2567529 rsh00
rsh00's picture

Good conspiracy theory...some elements do make sense. In that case, the current headless state of Indian affairs is most likely conducive to total anarchy in the coming months. I think maybe India will be the fall guy in the coming conflict between US and China. China has not helped matters by keeping an aggressive posture on small tracts of land along the Indo-China border...many times even claiming that the entire state of Arunachal Pradesh is actually Chinese territory. When the conflict starts, many nukes will hit India instead of across the Pacific.

Wed, 06/27/2012 - 15:38 | 2566073 Silver Bug
Silver Bug's picture

Start burying your coins.

 

http://jimrickards.blogspot.ca/

Wed, 06/27/2012 - 17:01 | 2566400 DosZap
DosZap's picture

Hahahahaha, good luck pissing off 1 billion plus Indians, that hold 22,000 tons of it.

That would be a reason for India to become a new country complete with new government if confiscation were tried there,

Wed, 06/27/2012 - 17:34 | 2566517 Two Towers AU AG
Two Towers AU AG's picture

Its impossible to stop sale of gold coins in India. Moreover the private Jewellery shops sell about 90% of the gold sold in retail the banks dont even account for any major share

This order is just a show boat... No Indian will be bothered by this...lest anyone forget Indians hold more money in hand than they deposit in the Bank.. Black Money and Black Market is more prominent across India than anyone can Imagine. 80-90% of transactions of all kind are done in CASH :) :)

Wed, 06/27/2012 - 17:54 | 2566578 Ghordius
Ghordius's picture

+1 black market is King, in India
btw, " To sterilise dollar inflows, banks were allowed to sell gold, as they imported the yellow metal." - sell/import? Eh?

Wed, 06/27/2012 - 19:44 | 2566847 Bringin It
Bringin It's picture

I live outside the Homeland.  I went to buy a new truck.  I had to go across the street with a shopping bag to get the cash and bring it back.  Auto dealers have staff on hand who's specific talent is counting money.  They also have the money counting machines all over the place.  I think in most of mainland Asia it's the same story.  Good luck digitizing that.

Thu, 06/28/2012 - 01:06 | 2567429 merizobeach
merizobeach's picture

There's no doubt that cash is a greater enabler of freedom than digital currency.  Now, if only there was a way to preserve the buying power of the cash..  Oh, right.

Thu, 06/28/2012 - 03:35 | 2567522 Skateboarder
Skateboarder's picture

I can't wait for gold to be valuable like in the spaghetti westerns. We gonna have some saloons and shootins boys.

Wed, 06/27/2012 - 17:23 | 2566476 CrashisOptimistic
CrashisOptimistic's picture

No one is going to confiscate anyone's coins.

There's a far more effective way to do this.

Simply tax gold transactions.  Tax them big.  Trading will come to a halt and so will published prices.

And that will be that.

Wed, 06/27/2012 - 18:19 | 2566622 bdc63
bdc63's picture

if the government will slap windfall profit taxes on crude refiners, you damn well better believe they'll impose it on gold whenever they want to.

They will probably even be "generous" about it, and give you one last shot to sell it to the treasury before the tax goes into place ...

When their system starts to fall apart, they are going to get desperate.

Wed, 06/27/2012 - 19:06 | 2566756 CrashisOptimistic
CrashisOptimistic's picture

Pretty much exactly that.  Gold is meaningless today to "the system". 

If it ever threatened to become meaningful, a steep tax on transactions will erase it as a threat, and frankly such a thing would be inevitable.

You will have no published price to use, and you will never know if your counterparty is a tax official.  That will be that for gold.

Wed, 06/27/2012 - 20:30 | 2566942 TheFourthStooge-ing
TheFourthStooge-ing's picture

I'm just glad that they don't tax weed.

Wed, 06/27/2012 - 21:18 | 2567053 mick_richfield
mick_richfield's picture

Um... they've made it thirty times as expensive as it could possibly be without them.  Prohibition is the mother of all taxes, and it benefits some very bad people.

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