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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (101788)	7/9/2013 12:01:59 PM
From: elmatador	Respond to of 219466

Used to jump on my suitcases to close: Now closing her own to fly back solo to Brazil.

To: carranza2 who wrote (101788)	7/12/2013 6:35:35 PM
From: TobagoJack	Read Replies (2) \| Respond to of 219466

just cleared from tray From: W Sent: Friday, July 12, 2013 7:31 PM Subject: RE: Bank Gold Exposure D, This is an interesting analysis but I beg to differ that the BBs are effectively short gold. Theoretically yes but in reality NO.Remember firstly that the banksters have hijacked the Fed and the US Govt in general. The banks own 100% of the Fed. For the Fed to call back even a significant % of the gold leased to the BBs would bankrupt the most important Fed shareholders and prompt the Fed to bail them out yet again. I suspect the players knew from the outset these were not really leases but constructive sales of gold designed to prop up the fiction that CB fiat currencies were sound.I strongly suspect that the BBs have only been acting as an agent for a fee in the ongoing CB price suppression program that GATA has documented has been going on for decades. The arrangements HAD to be classified as leases so the Fed and other CBs could continue to reflect the fiction that they still owned boatloads of gold. What has changed now is there is powerful evidence CB gold inventories are running on empty. The canary in the mine was ABN AMRO defaulting in early April just prior to the big smash.Why couldn’t ABN AMRO simply borrow gold from the ECB or Fed? This would have been a much better solution than risking a buying panic by permitting a major BB to default on their contracts for physical. The only logical answer is the Western CBs lacked the availability of bullion themselves. Ergo it must have already been sold. The takedown of gold since early this year and the shocking manipulation of paper gold since mid-April was clearly a deliberate ploy in my view to deal with this situation.Based on the numbers it was apparent that ALL the BBs were in danger in April of going the way of ABN AMRO and defaulting. Reported inventories at the COMEX and JPM then were at record modern era lows v. massive claims on this gold, and this continues to be the case today. So this smash was designed to destroy investor psychology and to avert the wholesale buying panic which would have inevitably ensued had ALL the BBs defaulted. The Fed wins by sustaining the fiction QE is a responsible policy and the USD a strong currency. The BBs win by generating enormous profits shorting GLD and the HUI as well as the COMEX futures using the Fed/BIS balance sheet (and digital printing press) to backstop them. Fed/BIS involvement is evident because otherwise the BBs would be in violation of net capital and maximum position rules, in addition to the fact they lack the financial wherewithal to prosecute this raid on their own. The essential feedstock for the prosecution of this raid has been the gold ETFs (mostly just GLD) which only the BBs can access.In practice the BBs use HFT algos to drive down the COMEX gold contract which drags down GLD in lockstep.At distressed levels the BBs gobble up the shares of GLD and present them for redemption to BNY-Mellon who instructs HSBC to release the gold held in London to the banksters. The gold then transits to places like HK and Shanghai,where typically $30-$50 premiums are paid for physical by Chinese buyers. The problem for the BBs is they’re rapidly depleting this source of supply. GLD has lost > 30% of their physical inventory just in 2013!So the constraint on further hammering of the paper gold price will be the difficulty in further extricating the necessary volumes of physical from ETFs like GLD. That day is drawing near which is why the BBs have moved from being very net short paper gold to currently being very net long. To complete the narrative on leasing, I suspect in practice the Fed has received the cash generated on their gold sales over the years from the BBs. I further suspect they record this cash as collateral from the BBs against the future (fictional) return of physical gold. What will likely happen when the SHTF is force majeure will be declared (likely in the contract) and the Fed will agree to walk away with the cash already received as full payment and release the BBs from their obligations to return physical. I hope you found this summary helpful. Kind regards, B From: D Sent: Thursday, July 04, 2013 2:26 AM Subject: Bank Gold Exposure Two quick points. 1) We often hear how the commercials (some of whom are assumed to be banks) are now long gold and silver in the COT report and are ready for gold to go much higher. Estimates are that the bullion banks have leased between 10,000 and 20,000 tonnes of central bank gold which they have sold into the market. The bullion banks are thus short gold and will never be ready for gold to go higher until that 10 - 20 k tonne short has been covered. 2) The OCC Bank Derivatives Report for Q1 2013 shows that, of US banks, only JP Morgan and Citibank have any material derivatives exposure to gold and silver (Bank of America has a $23 million silver exposure). See below. Rgds, D occ.gov