Central Banks & Gold
QUESTION: “You wrote ‘Some central banks appear poised to sell gold to raise money given they have no intent to return to a gold standard.’ Which ones are the sellers and the buyers?”
ANSWER: Those who are thinking about selling are the ones in financial trouble. This is being discussed among Euro members. Germany is not likely and Switzerland is not part of that group. Mainly it is Southern Europe as the North does not wish to bailout any of them anymore.. Of course the gold promoters want to point only to the buyers as if this somehow supports their position. Yet on the other hand, they claim there is no gold in the vaults and that is why it will soar. This is very contradictory. The nations that have been the buyers are typically the ones who abandoned capitalism previously who have the lowest tax rates today and the potential sellers are in the Western block with the highest tax rates killing their economies. They are talking about selling behind the curtain only because they think they still have to pay the bondholders and are desperately trying to save the Euro. Some sell coins out of reserves which are not being replaced. If the traditional Western nations sell gold trying to hold-off the defaults, then that will be long-term term bullish removing the threat of sales, Short-term, it may finish the correction.
This is not really a major issue. It is simply part of the trend. It is the timing that must line up to create the rally. The brain-washing gold supporters cannot stand the thought of ever having a down year and are blind to looking at the world financial markets as a whole. Gold cannot rally until everything is lined up. So yes, “some” nations are considering sales because they are politicians that will do anything to keep things as they are. If the Euro failed, look at all the politicians in Brussels that would be out of a job. They will sell gold reserves to retain those jobs. They could care less about their countries – this is all about federalizing Europe. They will sell the gold reserves if they have to. Make no mistake about that. Nigel Farage made that clear on April 17th that these people are all about retaining power. In their own self-interest, they will do whatever it takes to retain the Euro in their mind. They are predominately lawyers – not financial gurus..
Obama Sets the Stage For The Next Recession
Obama is never done raising taxes. He is a lawyer – not an economist. He and the Democrats are just hopeless. No matter what you show them, they are just out the destroy our freedom and the Republicans are too blind to even observe the real economy. Congress has now under consideration a online sales tax legislation that will destroy the economy as a whole.
This is more than more taxes. The burden placed upon small business is outrageous. They become tax collectors with criminal liability and no pay. They then have to file forms, hire accountants, and lawyers all to keep track of this new burden.
This is more than more taxes. The burden placed upon small business is outrageous. They become tax collectors with criminal liability and no pay. They then have to file forms, hire accountants, and lawyers all to keep track of this new burden.
Local small business is all for it. They see people buying online to save taxes locally so they want the internet destroyed so they can sell in their local stores. Quite frankly, they are brain-dead for they are just assuming they will sell more and kill the competition rather than move with the internet evolution. Newspapers and magazines will be dead. The younger generation do not buy newspapers in general. The internet offers more variety and better prices than many local stores and there are few local computer stores even available.
This is part of the next economic recession. Obama just past the copyright protection for the internet that eliminated all constitutional rights and allows the government to seize your business shifting the burden to you to prove the other person has no copyright. They get to silence you first and you have the burden of proof. That is not freedom. This can be used to shut down any site where they do not like the content. You cannot have a site in the USA any more. The internet is on its way to being destroyed because these people spend other people’s money, and then confiscate whatever they need to pay the bankers – that is DEFLATION.
This is historically how innovation, economies, empires, nations, and city states have always been destroyed. As I have said – you will PRAY for the simple hyperinflation before they are done with you.
Central Banks Buying Shares & Selling Gold?
What is interesting is that those who manage the more than $11 trillion in reserves for central banks know more than what they are revealing. Previously, on April 4th we reported that China’s debt holding in Euros fell to BELOW 7%.
We have been collecting the raw data on the reserve holdings and will report shortly on that breakdown. However, what has been going on is nothing but shocking. While the gold promoters are touting hyperinflation, the central bank reserves have been diversifying and moving into TOP BLUE CHIP STOCK!!!!!!!Yes – you read correctly.
Even when the Federal Reserve was originally formed in 1913, to “stimulate” the economy it once upon a time bought corporate paper. When World War I came, the politicians told the Fed it had to buy only US government paper – not corporate. During World War II, the Fed was ordered to support US government bonds at PAR until 1950.They thereafter began a crash and burn nosedive for 31 years into 1981.
Some central banks appear poised to sell gold to raise money given they have no intent to return to a gold standard. This is the shadow behind the advice to Cyprus to dump gold. Meanwhile, Switzerland had recalled its gold because the US was going after them for helping Americans avoid taxes. The Swiss hold 70% of their gold reserves at home, 20% is held by the Bank of England, and 10% by Canada. They removed all gold from the USA. Thus, those who said Germany would find the US vaults empty, have been proven wrong by the Swiss who preceded the Germans on that score.