Thursday, January 17, 2013

Germany Pays A Visit To The United States

Press Release from the Bundesbank:  LINK
Knock Knock.

Ben Bernanke:   Who's there?

Bundesbank (German Central Bank):   We would like our  gold
                                                                     back please.

Ben Bernanke:   ROFLMAO

(note: "roflmao" is texting-code for, "rolling on floor, laughing my ass off")

Here's what Jame Turk has to say about this - for the record, in studying/researching the gold market exclusively for the better part of 12 years, I believe Turk knows as much as about the subject of Central Bank gold manipulation as anyone I've encountered: 
It’s quite clear that the German gold is being held hostage.  They are not getting what they want.  They are getting what the Federal Reserve is telling them they can have.  The fact that they are doing it over 7 years rather than 7 weeks, is just an indication that gold probably isn’t in the Federal Reserve, and the Federal Reserve doesn’t want to have to go out and buy it overnight to fulfill the German demand.  They are trying to stretch it out as long as possible in order to keep gold prices controlled.
Here's the link to his interview with Eric King:  LINK

The most likely scenario is that, while it's possible, though not a certainty,  that the bars may be sitting in the West Point deep storage Fed gold vault, it has been leased out and swapped out in legal transactions designed to manipulate the price of gold.  What this means is that private parties (think:  China's central bank, very wealthy foreigners, India, etc) have the legal title to any gold that has been leased or swapped and sold outright.

If you are skeptical as to the credibility of this reality, please take the time to read this paper authored by James Turk in January 2002 - it is quite revealing:  Fed Gold Swaps



  1. That's not funny, Dave

  2. Seriously Dave, I am working my ass off trying to hold things together. Congress, either side, is not helping one iota and you are trying to kibbitz over the matter. This is just too serious to joke about. Just because your portfolio is postitioned for whats happening is no reason to joke about things.

  3. LOL. Tutto bene? Il mio amico grande? Parli l'italiano?

  4. JPMorgan Chase CEO Jamie Dimon Gets Impunity, While DOJ Puts "Small Fry" in Prison for Five Years

    It's the appearance of abiding by the "rule of law," but in reality abandoning that standard for the powerful elite. For them the DOJ observes the ruling managerial class standard of omerta. It is the DC "masters of the universe" code of silence.

    Top Wall Street dog and Obama favorite Jamie Dimon, JPMorgan Chase's CEO, recently endured the "punishment" of having his yearly bonus reduced to $10 million dollars for not driving Chase's stock price and profit even higher. (Meanwhile, Chase cut its staff by 1500 last year.)

    But the venerable Marcy Wheeler at recently wrote a commentary that nailed down how the DOJ gives Dimon and bank executives at behemoths like HSBC a legal pass on criminal prosecution, while forcing a small fish in Los Angeles to go to jail for five years for lesser crimes. In this case, it involves the Bank Secrecy Act/Anti-Money Act.

    Wheeler reminds us, "Remember, it has been less than 18 months since JPMC got caught–among other things–sending a ton of gold bullion to Iran in violation of sanctions. That time, at least, Treasury’s Office of Foreign Asset Controls fined JPMC, if only $88.3 million."

    Then she contrasts the lax enforcement in regards to Jamie Dimon's too big to fail bank with how the DOJ came down on the manager of a check cashing business in Los Angeles like a ton of bricks:

    Still, here were are a year and a half later, with JPMC still refusing to police what it is helping its customers do, and the government is letting JPMC off with no fine.

    Compare that to the treatment of a [Mr.] Gasparian, the manager of the G&A Check Cashing company out in LA. Today, he got sentenced to five years in prison for doing precisely what Jamie Dimon did: fail to comply with BSA/AML law. In his sentencing, he [his attorney's] even submitted records of all the big banks that have skated for doing what he did, including HSBC’s 1.9 Billion wrist slap, and noted the disparity in treatment:

    "An even greater problem with the Government’s seeking a sentence of incarceration in this case is the disparity when compared to other instances of the same offense, or instances involving even more egregious conduct, such as much larger financial institutions conducting business with drug trafficking organizations and terroristic regimes like Iran. Time and time again, the United States Government has offered deferred prosecution agreements (and fines) to financial institutions whose conduct was exponentially more egregious than the conduct at issue here. Mr. Gasparian’s offense, while serious, was still far short of the conduct committed by these other institutions. Any sentence of incarceration in this case would be a loud proclamation that the rich and powerful receive one type of justice, while those less powerful receive another type."

    ….Remember HSBC provided over $990 million in cash to a terrorist bank over a four year period. All that’s before you consider their money laundering for Mexican cartels and probable Russian mafia. Not a single HSBC employee was so much as indicted, much less sent to jail for five years or for a lifetime for material support for terrorism.

    The DOJ conducts these show trials (as in the case of Gasparian), it claims, in order to deter violations of the Bank Secrecy Act/Anti-Money Act. But it does little but occasionally slap a fine on behemoth financial institutions who are run by "made men" in the Washington DC insider's club of the powerful. The fines -- even on the rare occasion when they are seemingly large -- just come out of gargantuan profits, so they are hardly a deterrent, as the DOJ claims. For giant banks, they are just another cost of doing business.

    everything's a joke....

  5. Ummmm......anybody a Federal Worker living off of their pension? Cause this news just came in:

    Does this mean ole Ben & board are at their limit in injecting toilet paper into the system?

    Gold is mined here in Nevada and I remember reading in Oct. 2010 that they were not mining/refining the big deposits but the gold "dust" that's a by-product of mining for gold. Would coins made from this be really worth as much? If I ever find the article, I'll post it. I'm pretty sure it was Ely, Nevada on-line news.

  6. The Germans don't trust Obama with their gold – and can you blame them?

    But that was then and this is now. In the eyes of the Germans – and who can blame them? – America has lost its mojo to such a degree that it can no longer be trusted honour its debts, even in the unlikely event that it were financially capable of doing so. Which is why, following in the footsteps of Venezuela's Hugo Chavez (who may be an idiot but is definitely no fool), Germany is repatriatriating its gold from the US federal reserve. It will now be stored in Frankfurt.

    This is an important story. One of the most spectacular con tricks of the last twelve months, pulled off by our political class with the connivance of much of the media, is that we've escaped the global economic armageddon which looked till quite recently as if it was going to engulf us. The Euro didn't collapse; Europe isn't in flames; QE hasn't led to Weimar-style hyperinflation; the fiscal cliff has been dodged; Britain hasn't yet lost its triple A credit rating; the bond markets haven't gone postal…

    Well it may look calm on the surface, but this latest move by the Bundesbank gives us a pretty good indication that beneath the surface that serene-seeming swan is paddling for dear life.

  7. US Mint Out Of Silver Coins - Suspends Sales

    Authorized Purchasers,

    The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.

    Please feel free to call us if you have any questions.


    Jack A. Szczerban

    Branch Chief, Precious Metals Group

    Department of the Treasury

    United States Mint

    1. Thanks. When I saw that earlier, I sent this memo around to several colleagues:

      This is why this is HUGE: they were out of 2012's by mid-December and knew there would be pent up demand for 2013's when they were issued. They specifically delayed minting more 2012's because it was so close to the roll-out of the 2013's (supposedly).

      The U.S. Mint is required by law to mint as many silver eagles as the market demands. They KNEW there would be an avalanche of pent up orders for 2013's.

      Why did they not mint enough to meet initial demand, as required by law? Because I believe there is a high probability that the real reason is the silver shortage we've been hearing countless anectodotes about -because there is an big shortage of the silver blanks they use to make silver eagles.

      On the heels of the Bundesbank situation, it is highly likely that this event will provoke lot more people, investors, money managers etc to look a lot more closely at the physical vs. paper bulliion issue and create a much higher demand for actual physical that is delivered to the buyer


      Yep, very true. And at my local walmart, people don't give a squat about obama's 23 executive orders as ammo is being bought there in large qualities.

  8. I am sure Benny is really terrified. Your link says it all.

    Accounting for the ESF's Gold Swaps - James Turk

    This report shines more light on the ESF and the gold shorts. The circle is tightening around them. The pressure is building. One of these days, they will lose control, sending the gold price soaring. And I think that moment is getting very close.

    Submitted by Administrator on Mon, 2002-01-07

    Yes close, real close in 2002, yes 2002 it's not a typo. At this rate of progress Benny is going to be pushing up daisies or in an aged care facility before the net closes in on him. Personally I think Benny will be the only one ROFLHAO.

    1. so what was the gold price in 2002??

      Justin from Canada

  9. Jim Sinclair says the only thing that will survive what's coming is physical gold bullion. Over at FOFOA, from which I manage to glean the occasional nugget from their extremely complex and hard-to-follow discussions, the message seems to be that one day paper gold will be worth zero and physical gold will not be offered for sale by anyone in the know at any price. But they say that physical gold demand is actually stressing the paper gold price, not supporting it, which is an interestingly different view of the current situation. Re. physical silver, I like it as a highly undervalued asset due to its dual industrial use and the growing demand in Chindia but I am wary of the banksters' plans for it - they've shafted silver before in favour of gold - e.g. when silver was demonetized in the US - in the 1880s I think it was? - I can't remember exactly - but I am not talking about the 1960s - anyway, that story gives such an insight into bankster mentality that I found it very ominous. Something about them just "forgetting" to name silver in some legislation as a monetary metal, so only gold was left, which they just happened to have a monopoly on. It was a total monetary coup d'etat, with frightening socially destructive power in terms of the lives of ordinary citizens.

  10. Headlines > " Apple Contractor Claims New iMac Production Delayed Over Silver Shortage "

    This sort of situation which has just occurred may challenge Jim Sinclair's theory .

    A shortage doesn't constitute prices for physical to go up in solid fashion?

    This is a temporary problem that can be fixed you might add ?

    Considering all that has occurred with physical silver hard to get such as not enough silver eagles made by the U.S. mint due to under supply , Sprott unable to accumulate large amounts at one time - just not available ,etc. it appears that physical silver shortages are taking place on a more regular basis.

    Sinclair might have to rethink his plan.

    1. I'm not sure how credible that report is. It was originally posted by Max Keiser and he doesn't provide a source link and I can find a true source link using google.

      I'd hold off on buying into that until someone can come up with a bona fide news source link.

  11. On the power-struggle between ‘money’ and debt.

    A concluding thought.

    Credit/debt backed ‘money’, the type which banks ‘print’ and control makes up the bulk of the present global money supply. This is power. As it was before the great Depression so it is again today. It is power that thought it was ascendant. Until the brittleness of their debt backed model of fiat, free-market debt backed money, imploded in on itself in 2008-09.

    The crisis made one thing clear – debt backed, market fiat money, is not yet robust enough to survive without a central bank to issue national money in times of crisis of market confidence. Or to put it another way the markets – mainly the big financial players, the banks, funds and insurance companies - suddenly realized that what their system, their currency did not have but in times of crisis badly needed, was a system of central, back-stop banks.

    Well they have them now.

    One way of looking at event of the last two years is to see the role and allegiance of the central banks changing. Ask yourself – who do the central banks work for? Is it you and your welfare that they concern themselves with primarily? Or have the central banks come to see their role as defending the integrity, profit and power of the system of banks which preside over the markets and the market’s debt backed wealth?

  12. TFMR Podcast #38 - Chris Powell of GATA

    With all of the news this week surrounding The Bundesbank and their gold repatriation plans, I figured that Chris would be able to add some additional context to the story.

  13. Al Gore Just Got $29.5 Million of Apple(AAPL) Stock For an Insanely Great Discount. What do you do right after selling your company for a half-billion dollars? If you're Al Gore, you go ahead and make another small fortune from Apple stock. Gore, who holds a position as a director on Apple's board, exercised options to purchase 59,000 shares of Apple stock on Jan. 15 for the insanely low price of $7.475 a share, according to a company filing with the Securities and Exchange Commission on Thursday. Based on Apple's current share price of about $500, Gore effectively purchased $29.5 million worth of Apple stock for just $441,000. That's a pretty big discount and one that Gore probably doesn't need.

    I never knew investing was so easy...ka-ching.

  14. Dean LeBaron ~ Adventure Capitalist

  15. John Embry ~ Chief Investment Strategist at Sprott Asset Management

  16. From India: Corrupting Power Of Wealth In Politics Is Making the People Angry

    JAIPUR: Taking serious note of middle class protesters taking to the streets over corruption, Congress president Sonia Gandhi said the lifestyles of leaders is giving rise to questions about the source of their wealth.

    Speaking at Congress’s chintan shivir (brainstorming session) here, Sonia said, “Celebrating weddings, festivals and happy events is one thing, what of lavish and ostentatious displays of wealth, pomp and status? Does this not beg the question, where is this wealth coming from?”

    Her direct remarks caused a hush to descend on the meeting. “Our citizens are rightly fed up with the levels of corruption that they see in public life at high levels, but equally with the corruption they have to deal with in their daily lives,” she said.

  17. Massive Fraud in Spain Threatens Entire Government of Prime Minister Mariano Rajoy; Protestors in Madrid Shout "Resignation"

    I am piecing together a story of fraud and corruption involving the highest levels of Spanish government. My unnamed sources think it could bring down Prime Minister Mariano Rajoy.

    However, the news articles I have (primarily in Spanish) are particularly choppy.

    The brief background story is "black money" (under the table fraud or bribes) was paid monthly to top Partido Popular (PP) party leaders.

    PP is the party of prime minister Rajoy. Amounts ranged from 5,000 to 15,000 euros per month, between executive secretaries, public officials and other members of the PP. Top party officials were aware of, approved, or were part of the scheme.

    The beleaguered government of Mariano Rajoy has been embarrassed by revelations that its party’s former treasurer had a bank account in Switzerland containing up to €22 million.


    Imagine all the bank transfers from our politicians?

  18. Getting riyal
    By Chris Cook

    Iran is in a state of turmoil, with elections approaching, sanctions biting hard, and the economy shuddering to a halt. As a result, all manner of expedients are being examined to kick-start the domestic economy, through infrastructure investment particularly, but a shortage of financial market expertise is causing problems.

    Oil-backed bonds have been mooted, and also there has recently been talk of a new currency to be issued by the Central Bank of Iran, which is cut off from the dollar payment system. I was recently asked for my thoughts in relation to these policies for the benefit of key officials involved in this policy making, and the following text has been well received.

    Treasury issuance of currency
    "Anyone can issue currency: the problem is having it accepted" - Hyman Minsky.

    In the course of my research at University College London, I have been investigating the historic operation of the English financial system as it was prior to the incorporation of the Bank of England in 1694, in order to establish if there are lessons to be learnt that may improve system resilience.

    Indeed there are.

    As I said to the Tehran Chamber of Commerce last year, I believe that Iran will come to thank the US for detaching them from the dollar system, because it means that a superior and sustainable system may now be adopted, one based firmly upon the values that underpin all the great religions, but which Islam alone has not forgotten.