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This post was edited by gork at 2013-4-15 22:41|
Bloomberg has actually highlighted the text in the Cyprus agreement where it specifies "excess" gold reserves should be sold, whereas the likes of the Daily Telegraph have merely quoted the wider text.
The specification of "excess" implies a rule to determine when your holdings are excessive. For example, if you repeatedly give someone a gold coin and ask is that enough, they will never say "stop". Some years back, under the Washington Agreement for gold sales, one nation was "caught" buying back gold and they claimed it was merely an "adjustment", again hinting at a rules-based scheme for gold holdings.
Along with Germany, France, Italy and Spain all legislating for a balanced budget and therefore sound money, this is another hint at a new gold standard. Both China and Russia have called for a "supranational" currency and a more equitable monetary regime rather than the "exorbitant privilege" of the dollar backed by nothing. Also, VAT has been removed from gold since 1999. Other clues include Germany's repatriation of gold. The propaganda claims that it was held at the NY FED as well as other locations to avoid seizure by Russia during the Cold War. Yet the Cold War was an assault on Russia and China, who refused to accept the dollar, not the other way around. Unmentioned is that the IMF is a loan-shark consolation prize for the runners-up in WW2 and that members are banned from backing their currencies with gold. Holding other nations' gold at the US FED, then, is enforcement of this rule. Increasingly, nations are dumping the dollar for trade, including Australia, Japan and the UK, suggesting the US, history's worst ever debtor, has accepted the end of dollar hegemony.
The 3.9 tonnes that Cyprus would be left with and representing 0.2% of the EU economy, suggests the EU as a whole should back the euro with about 1950 tonnes of gold. This would be about €40,000 euros per ounce as under a competitive currency regime, no nation would be able to impose a partially backed currency as the US did in 1914, specifying only 40% gold backing.
Some have suggested the US must get out of its current debt problems with a massive, one-off revaluation of gold, so that it's alleged gold holdings of 8134 tonnes can be used to cover its debt in the same way that Cyprus may do. But records show that thousands of tonnes of gold have already been exported by the US in recent years, shipped as "gold compounds" but which were 99.9999% gold. Given this, the US would ALSO have a gold price of about $40,000. The UK too has a monetary base of about ￡400bn and 310.3 tonnes of gold suggesting a gold price of ￡40,000. This suggests that the pound, dollar and euro are targetted for parity under the new monetary regime, just as soon as Mark Carney takes over in July at the BoE (apparently, the BoE staff have been caught scouring the web for ways to buy into gold).
The recent smashdown of precious metals in the absence of any reason for the prices to fall and with both the FED and the BOJ printing massive amounts of fiat currency, suggest both JP Morgan and HSBC (US) are caught in a short-squeeze and have to hammer the price of both metals down before buying back prior to the massive one-off revaluation. As well as that possibility, it's obvious the BoJ has started a massive $76bn a month in money printing to support the dollar. Announcements include the plan to buy, not JGBs, but US Treasuries and the only possible exit strategy is to run a balanced budget until the debt is paid off. So herding the sheeple out of commodities and BiTCoin and into assets that won't protect against inflation (shares, bonds, property or cash) looks like a policy to socialise debt. They can't short BiTCoin so they hacked it instead. Incidentally, BiTCoin is a faith-based currency, so if the attack can be deemed successful, then the value should have fallen to zero. Fiat currency is also faith-based but with the possibility of limitless supply, there's no faith so the FORCE acceptance with legal tender laws. The year-long slump in the precious metals prices follows on from JP Morgan's seizure of clients' assets at MF Global and PFG Best, with one hedge fund manager helpfully appearing on the Keiser Report to claim that she'd given all her clients' money back and claiming that the futures market (spot prices in the US are for gold futures rather than a physical market) could no longer be trusted. That in turn followed CME repeatedly raising margin requirements on first silver and then gold. The current smashdown started on the bank-holiday Monday when markets were supposed to be closed and most recently with a big take-down on a Friday. In other words, the gangsters are not even trying to hide the fact that they're manipulating prices because the intent is to herd the sheeple out.
But with all other asset classes massively over-priced already, there is nowhere else to go and only the most gullible suckers would be panicked into selling at this point. To do so would be to buy high and sell low. As Marc Faber has said, "I love the fact that gold is finally breaking down because that will offer an excellent buying opportunity," and Jim Rogers has long-anticipated the smashdown, saying he hoped he would have the good sense to buy more gold. Anyone who hasn't already sold with the intent to buy back should now, instead, hold or buy as even the propaganda admits that inflation is inevitably to come. I've lost thousands on gold but I haven't even bothered looking at how much. My main concern is getting more funds available in time to buy even more.