Big drop in central bank gold selling plans as Fed & BoE accelerate money printing

Posted on August 7, 2009 by stacyherbert| 69 Comments

Stacy Summary: The European central bank agreement on gold represents a significant drop in the amount of gold they will be offloading in the next five years. That the IMF’s 400 tons is included indicates there is even less that they are allowed, or willing, to sell. It will be very interesting to watch the four years after the IMF sells. With the Fed buying its own debt, the Bank of England buying £50 billion more of its own debt . . . why on earth any nation would want to get rid of their gold right now . . .

European central banks agree to limit gold sales (h/t @Mary Kapadia)

The Fed is “lending” a helping hand

The Fed buys last week’s Treasury notes

Update:

Naked Capitalism doesn’t see conspiracy in the Fed purchase from primary dealers

This entry was posted in Headlines and tagged fed, gold sales, monetization. Bookmark the permalink.

69 Responses to Big drop in central bank gold selling plans as Fed & BoE accelerate money printing

Giuseppe Bagodonutti | August 7, 2009 at 9:15 pm |

From to FOFOA blog AUG 3rd 2009

(supposedly a quote from Catherine Austin Fitts)

What we’re advising people to do is essentially withdraw from a rigged game. And so don’t invest in large corporations and large government securities. But rather, practice financial intimacy which is investing in who and what you know. So the reality is that this game is not to the advantage of the small investor, and the question is how can we switch out of it, and start investing in things where we can have confidence in either the ethical nature of the company and the products and services, or the ethical nature of the market in which we are participating?

Now, even though FOFOA seems to cast a disparaging light on this advice, I find it adequate and accurate to the condition of the Canadian Markets at the moment.

This is the way I “Welfare Trade”
Does that make me an evil speculator?
I choose to manage what little savings I have instead of letting deleterious twats behind the bank counters, calling themselves Financial Advisers, do it for me…
So long as I have 48 hours of foresight before a collapse, I can pull my “fiat” out and exchange it for gold…

So in essence, I ask, is MY PLAN in danger?
Will the signs be apparent enough to avoid the trap?
or will this shit happen overnight while China sleeps?

Bank Holidays and Bread Lines…
How fast can it happen?
Is there any precedence?
Giuseppe Bagodonutti | August 7, 2009 at 8:42 pm |

RE: Fibon112358 13 21 34 55 89′s cryptic post

This dog is lying low as the lions begin to fight, and thanks for FOFOA and you know who, who may or may not see this and will understand.

http://fofoa.blogspot.com/
Aug 3rd 2009
gonzomarx | August 7, 2009 at 2:28 pm |

@stacy people don’t seem to trust the banks to wire it… and would like it in “gold and cash please”
stacyherbert | August 7, 2009 at 1:23 pm |

@frances snoot – “free market pirate with a heart” – that’s a nice way to put it!
stacyherbert | August 7, 2009 at 1:21 pm |

@Fibon11235 – “So long folks”? You going somewhere??
stacyherbert | August 7, 2009 at 1:19 pm |

@Phil – NY is where dollars are printed, they have way more power . . . at the moment; until the dollar collapses I suppose
stacyherbert | August 7, 2009 at 1:18 pm |

@gonzomarx – it seems there are lots of stories these days of people crossing borders with nation sized quantities of loot
aNewEraBegins | August 7, 2009 at 12:53 pm |

@ Phil

Thanks!

Here’s all five of the vids…..

http://www.youtube.com/user/aNewEraBegins#play/uploads
Youri Carma | August 7, 2009 at 12:27 pm |

Top SocGen executive Jérôme Kerviel resigns after financial market watchdog starts investigation http://tinyurl.com/nabpg8
frances snoot | August 7, 2009 at 12:13 pm |

@Stacy:
Do you have any input on the debt jubilee idea? Might make an interesting topic to post. It seems our only salvation.
gonzomarx | August 7, 2009 at 11:55 am |

here’s the report from Turkey’s independent “Kanal D”
http://tinyurl.com/ksowv6

anyone speak Turkish?
there seems to be some confusion over the amount seized 18.5 Billion total or $7.5 billion in cash and 20 metric tons of gold!! although the gold amount is consent in the reports.

now been officially denied
Cash, Gold Report Denied http://tinyurl.com/n3qtl7

another take on this increasingly strange story and adds a weirder element of biblical prophesy/coups/gold
Russia “Shocked” Over $18 Billion Iran Payment To Obama After Failed US-Backed Saudi Coup
http://tinyurl.com/lbt8kk

this take is so twisted, jangled and contradictory it just needs Gila monsters and a goldman sachs non denial denial to be perfect
stacyherbert | August 7, 2009 at 11:35 am |

@tony – I thought the same thing
Tony | August 7, 2009 at 11:33 am |

It’s kind of funny that Naked Capitalism admits that it doesn’t know all that much about bond auctions but still thinks it’s pretty clear that Zero Hedge & Chris M are acting stupidly…
aNewEraBegins | August 7, 2009 at 11:20 am |

Hey Phil…..

Yea I made that video. I’ve been making one a day and I plan on continuing at that pace. I haven’t heard anything from Max and Stacy yet….

I’ve kept quiet for far too long. I just finished a book and am currently deciding between publishers. It’s non-fiction set in a fictional environment…. a lot of times that makes the truth more palatable to the reader. The book deals with a lot of the topics here.

My over-arching mission is this: to wake people up!

Thanks for the vote of confidence Phil…. you have no idea how much that means. I think that a lot of Keiser fans all live on their own little lonely islands. At least we have the internet.

RISE UP

Here’s my site if you care to watch more of my videos…..

http://www.youtube.com/user/aNewEraBegins

Maybe Max and Stacy could post some on this site????
gonzomarx | August 7, 2009 at 11:10 am |

following up something sharon posted earlier

Iran dismisses claims about $18.5 billion container load
http://tinyurl.com/m7k5da

Dr. Manouchehr Ganji to PM Erdogan: Come Clean on the $18.5 Billion U. S. transferred to Turkey from Iran http://tinyurl.com/nkg7rg

Is Bandar somehow tied up with this the reason he’s under house arrest? if indeed he is.
anyone know more?
Youri Carma | August 7, 2009 at 11:00 am |

@Fibon11235

Goldman Sacks http://tinyurl.com/na6ja9
Dan | August 7, 2009 at 10:42 am |

Baltic Dry Index beginning to dry up again

http://www.telegraph.co.uk/finance/economics/5990051/Baltic-Dry-Index-has-worst-week-since-October-meltdown-as-Chinese-demand-slows.html
Phil | August 7, 2009 at 10:38 am |

Did you make that video ? … really good !
( same ID , so well done if it “is” you , which I presume )
aNewEraBegins | August 7, 2009 at 10:34 am |

This is just like what Max and Stacy have been saying for years….

It’s the Savers vs. Speculators…..

http://www.youtube.com/watch?v=n7gDgLScQmU
stacyherbert | August 7, 2009 at 10:06 am |

Max is on France24 again at 8pm tonight. Tune in live. I will, of course, also post it soon after.
sharon | August 7, 2009 at 10:00 am |

@Mike/Liverpool
No problem.
Mike/Liverpool | August 7, 2009 at 9:57 am |

Sharon
Could you e-mail me when you got a chance
Thanks
Mike
sharon | August 7, 2009 at 9:47 am |

Another Town Hall Fiasco. The protesters have entitled their prtotest: ‘Silent no more’
This is a good one! I think change is coming to America and it ain’t the Obama style change if these people have their way.

http://goldismoney.info/forums/showthread.php?t=397322
Phil | August 7, 2009 at 9:36 am |

@AIG … Denninger picking it up now

More Inside Trading? (AIG)
http://market-ticker.denninger.net/archives/1309-More-Inside-Trading-AIG.html

It’s a pity he didn’t pick up on the “trade volume” that meant a 100 fold increase in US$s traded in AIG daily.
Phil | August 7, 2009 at 9:33 am |

@Sharon … “Birth Cert”

Don’t be surprised if they simply vote to change the constitution !
Phil | August 7, 2009 at 9:32 am |

@Dedo … ” Phil,…..yeah,..so what’s so clever !!,….even I can do that,….: ) ”

Ever thought about going into politics ?
sharon | August 7, 2009 at 9:30 am |

Bill to force Obama to reveal birth documents
State senator: ‘Why wouldn’t they be available to the public?’

Hawaii state Sen. Will Espero, a Democrat, has confirmed plans to introduce legislation through which the state’s lawmakers would force the public disclosure of all President Obama’s birth documents held by the Hawaii Department of Health, including President Obama’s long-form original birth certificate.

http://www.wnd.com/index.php?fa=PAGE.view&pageId=106137
Dedo | August 7, 2009 at 9:18 am |

@Phil,…..yeah,..so what’s so clever !!,….even I can do that,….: )
Phil | August 7, 2009 at 9:06 am |

Now if only politicians were as clever as this bird …

Video: Aesop’s Fable – or fact? Meet the world’s cleverest bird
http://www.timesonline.co.uk/tol/news/uk/science/article6753086.ece
Phil | August 7, 2009 at 8:51 am |

Last Week’s Insiders Transactions: 5 Buys For $13.4 Million, 145 Sells For Over $1 Billion

http://www.zerohedge.com/article/las-weeks-insiders-transactions-5-buys-134-million-145-sells-1-billion

Red Shoots anyone ?
sharon | August 7, 2009 at 8:51 am |

Interesting article. Just how far down does this rabbit hole go?
Scroll down a bit:-

http://www.whatdoesitmean.com/index1263.htm

“……..What is known, though, is that the transfer of Obama’s “initial payment” to this cabal of over $18 Billion this past October, through Turkey, (and as we had reported on in our August 5th report titled “Russia “Shocked” Over $18 Billion Iran Payment To Obama After Failed US-Backed Saudi Coup”) may “possibly” come to light after reports from the United States are stating that one of the few remaining alive insiders into the workings of this cabal may openly testify in a US Federal Court about the “Turkish Connection” to the United States Presidential election, and as we can read:

“Unless the Dept. of Justice re-invokes their twice-invoked “state secrets privilege” claim in order to once again gag former FBI translator-turned-whistleblower Sibel Edmonds[photo 2nd left], her attorneys have notified the department by hand-delivered, sworn letter of declaration this week, that she intends to give a deposition, open to the media, in response to a subpoena this Saturday in Washington D.C.”

Most unfortunately about all of these events now occurring in the United States is that its citizens have become so brainwashed that they readily suspend their logic in believing whatever their mass propaganda media feeds them….including that one of the World’s most knowledgeable computer programmers making an, estimated, $1 million a year salary, “suddenly” decides to become a mass killer……”
Youri Carma | August 7, 2009 at 8:34 am |

Las Vegas Sands, Wynn IPOs seen as sure wins http://link.reuters.com/vys89c
Amandip Singh | August 7, 2009 at 8:22 am |

Unemployment Rate in US decline, Payroll losses slow

http://www.bloomberg.com/apps/news?pid=20601087&sid=albavffOQj4o

Baltic Dry Index Drop, has worst week since October

http://www.bloomberg.com/apps/news?pid=20601110&sid=aOkYkh3CsUFg#

These two stories seems in quite contrast to each other.

I have a problem and searching for answer and problem is…. Payroll is declining less but still declining i.e -ve number, and this number is basis to calculate the Unemployment rate, then how come still a negative no i.e Payroll -247000 can lead to improvement in Unemployment rate i.e 9.4 from last months 9.5. In simple mathematics an addition of -ve no leads to increase in -ve number or decrease of +ve number, but here it resulted in decrease of negative number i.e Unemployment rate.

Please, if anybody know how its calculated, help me figure this out, I might have failed to understand the real intricacies of mathematics.
mark/berlin | August 7, 2009 at 7:55 am |

Jim Sinclair on Goldseek radio:

http://www.radio.goldseek.com/players/sinclairnuggetaug5.php
Youri Carma | August 7, 2009 at 7:47 am |

Goldman’s Macro-Bulls Out in Full Force http://bit.ly/nx9jq
Phil | August 7, 2009 at 7:22 am |

Tent City America
The Expiring Economy
By PAUL CRAIG ROBERTS
http://www.counterpunch.org/roberts08062009.html

Very good points made .. short read !
Phil | August 7, 2009 at 7:11 am |

@aNewEraBegins … Great little clip .

I bet the Americans will soon wish they’d voted RP into the WH.
And yes, the comparison with captive elephants is excellent !
aNewEraBegins | August 7, 2009 at 7:06 am |

They play a slick game, the fed I mean. Never underestimate these people.

Listen to what Stacy says about Captive Americans! We’re all big elephants…. c’mon people!

http://www.youtube.com/watch?v=QUF1mcvVUTs
Youri Carma | August 7, 2009 at 6:55 am |

HK holds $218.1 bln foreign currency reserve – Xinhua News Agency http://url4.eu/BtUq
Youri Carma | August 7, 2009 at 6:51 am |

Inflation Concerns Push More US Hedge Funds Into Gold http://tinyurl.com/lqnhk2
Phil | August 7, 2009 at 6:47 am |

Corporate lending (baaaa)
http://www.youtube.com/watch?v=ASftoGSy8ic

Nick has a nice way of explaining things !
frances snoot | August 7, 2009 at 5:51 am |

@Problemis:
Do you think the political leanings of the blogs proprietors color the analysis? Isn’t Yves a progressive socialist and Karl and die-hard capitalist? It’s good to have both sides of the spectrum in living color.

Would we term Mr. Keiser a free-market pirate with a heart?
Fibon11235 | August 7, 2009 at 5:43 am |

@ Phil

I know I spelt Goldman Sachs incorrectly earlier I could not be bothered to correct it, from now on ill call them Gold men in Sacks.

Phil in NY are probably buying more physical than London for whatever reason as the others are still on the paper ETF trip…why I don’t know, hay good luck to them.

I would love to hear Max start using Gold Men in Sacks as that how it feels, I bet they only own physical, poor America what a dreadful mess.

Get ready for the paper fire storm and watch out for those thousands of lions about. If im not mistaken the CB are selling less over 5 yrs than trades in day. What are people buying?

God help us all, and good luck

So long folks
doomandbloom | August 7, 2009 at 5:43 am |

i hate spreading disinformation…but some of it is too hard to resist

http://en.wikipedia.org/wiki/Prediction_of_the_United_States_collapse_in_2010
frances snoot | August 7, 2009 at 5:42 am |

@Stacy:
Nice link for the Fed and the Treasury notes! Hope you and Max have a lovely holiday!!!
dan valley | August 7, 2009 at 5:08 am |

punks not dead!!!

Revaluation of gold…….wait for it………BAM!!! They really own your @ss.

I want to see the bankers eaten by lions or better yet put them in the octagon.
Danny | August 7, 2009 at 5:01 am |

I knew your new show would be on Russia Today. Thats great. They’re doing the best reporting on whats going on in the US tha any other international news station in my opinion.

Whats the show gonna be called?

Coming soon to the UK: negative interest rates?
http://blogs.telegraph.co.uk/finance/edmundconway/100000433/what-britain-needs-now-negative-interest-rates/

Banks May Be Added as Defendants in Madoff Suit
http://www.nypost.com/seven/08052009/business/banking_on_a_suit_183024.htm
vagabond | August 7, 2009 at 4:45 am |

@ mike2 Liverpool i agree about needing some new kind of music ,punk ?,rap ? ,hip hop ? , [ fill in the gap for whatever comes next ...? ] call it what we like , but i agree we kind of need something new to come along every 10 years or so and clean out the stables, it’s good for the cleaning out sewerage of the musical digestive system or ‘industry ‘ ,good also to see people listening to a variety of music styles and eras ,[ digital has made so much more music available ], as for ‘copyright’ ?, music is something that nobody ‘owns’ , music belongs instead to those who have the energy to use it .only people who have the energy to use it have the right to ‘own’ it and even then just for a short time . this clip may not be every bodies cup of tea ,earl grey ,English breakfast, but it ‘s late in the day and as i am getting older , it works for me . p.s. someone better tell goldman sachs not to mess with max because their dealing with an aging punk rocker ,..so look out ! ‘revolt into style’ merry Christmas everybody !. Christmas has come early for goldman sachs this year but still no presents for us ! http://www.youtube.com/watch?v=OfPDXahaKpY.
problemis | August 7, 2009 at 4:09 am |

Karl Denninger at Market Ticker went off about the Fed purchases also.

So it’s Zerohedge, Karl and Chris Martenson on one side and Yves Smith and John Jansen and the other side.

Considering Karl and Tyler’s dead on analysis over the last several months… and the fact Yves has turned her blog over to pension guys while she writes a book… whose analysis is correct on this one?

Yves pension guys by the way, write such long winded posts that only Bernie Madoff would have time to read them. I like detail and facts but…

32 foot long rants on “Everything You Ever Wanted to Know About Pensions But Were Afraid to Ask”… I’ve got carpal tunnel from scrolling down with the mouse on these things…

Posts so long you can’t even find Naked Capitalism’s lead links… they are buried 32.3 feet down after the pension critique…

Now, I think the pension issue is important…

US pensions are nothing more than feeders to Goldman’s ripoff activities…

Sure to impoverishment of the American people…

If they can put that big mac and tv remote down long enough to figure it out… but let us keep it concise oh pension gurus…

Naked Capitalism was better when Yves was able to manage it everyday.
stacyherbert | August 7, 2009 at 4:07 am |

@Nic Abbott – thanks, but we haven’t left town yet! make sure you tune in to today’s On the Edge as it is a doozy; we have a fantastic surprise documentary we have made over the past year about gold; I think people will love it

@Mother Earth – Reims. Sounds nice. Do you live in France or just happen to be visiting? We could be passing by, won’t determine where we are going until the last minute though!
Nic Abbott | August 7, 2009 at 4:03 am |

Have a good holiday
Mike2liverpool | August 7, 2009 at 3:59 am |

Sorry here the Link
http://news.bbc.co.uk/1/hi/uk/8189419.stm
Mike
Mike2liverpool | August 7, 2009 at 3:58 am |

More “Sucess” in Afgan for the Empire:-
RedZebra | August 7, 2009 at 3:54 am |

Can someone please explain to a non-expert (me) the reason banks would publish such an agreement on limiting their gold sales? Is it some legal requirement that they have to announce what they will do? Disregarding for a moment the possibility that they have an ulterior motive (!) I don’t understand what the purported purpose is.

Also, Mike, while I agree “False Flag” is indeed a good name for a punk band, I would prefer “the purported porpoises”, but that’s probably a reflection of my strange taste in music.
Mike2liverpool | August 7, 2009 at 3:37 am |

We need a new Punk Band

“False Flag”

Max Ask Bob if he can find the next Johnny Rot, may be get Banksy to do the art work for the record.

Mike
Mother Earth | August 7, 2009 at 3:26 am |

Holland has been in the Central bank gold sale program, very unwise..

Good to hear you are escaping from Paris, hope you travel around a bit. If happen to be near Reims (Champagne region) around the 14 of august let me know, you can join the BBQ at our farm

Special apparel : Goldman Sach BBQ Apron http://www.cafepress.com/ClimateBabes.401174614

I also made a shirt with an older image I never though I would find reason to use..The Obama Slavery T-Shirt

http://www.cafepress.com/ClimateBabes.401172037

Images here:
http://www.climatebabes.com/images/obamaslave1.bmp
http://www.climatebabes.com/images/debt%20slaves3.bmp
gonzomarx | August 7, 2009 at 3:14 am |

a view from the UK
Is Obama’s economic plan working?
http://tinyurl.com/mykdd8

Record numbers declared insolvent
http://tinyurl.com/lbxnz4

not only do you have to beat the other masses of peeps going for jobs then make it past the interview and piss test there’s this…
The Unemployed’s Newest Enemy: Cheap Credit Report
http://tinyurl.com/kle3d6

Goldman: 2008 commodity redux coming
http://tinyurl.com/nz527m

“We expect a commodity supply shortage in 2010…we expect a redux of 2008 when severe supply constraints forced the rationing of demand through sharply higher prices to keep the markets balanced”

so get ready for the bread riots…
Mike of Sydney | August 7, 2009 at 3:01 am |

OECD economist Dr. Adrian Blundell-Wignall (who predicted the finanical collapse in 2007) predicts a “double dip” recession, due to failure of banks to cleanse toxic debt and non-transparency of EU banks.

http://www.abc.net.au/news/stories/2009/08/07/2649723.htm
Mike2liverpool | August 7, 2009 at 2:52 am |

Phil
Getting VERY pissed off with Gold, it NEVER seems to get over $1000 for very long. Yes i know “They” play games with it, but Bloody Hell.
Mike
Phil | August 7, 2009 at 2:36 am |

@Gold price

Strange how the Gold price always wakes up after NY market open.
You’d think that the London Gold market would have more say !
FWIW
Phil | August 7, 2009 at 2:34 am |

@Mike … ” Personal insolvency at new record”

… ” The number of companies going bust in England and Wales continued to fall, down by 14% on the previous quarter but still 23% higher than a year ago. ” …

These statements always get me angry !
Using %-ages, you can always hide the truth !

i.e. what do the “absolute” figures really say ?

e.g. starting with 100 Companies

100 – 25 = 75 left = 25% BK rate
75 – 15 = 60 left = 20% BK rate
60 – 12 = 48 left = 20% BK rate
48 – 8 = 40 left = 17% BK rate

etc. etc.
Mike2liverpool | August 7, 2009 at 2:27 am |

UK “Green shoots”
http://news.bbc.co.uk/1/hi/business/8189053.stm
Mike
Phil | August 7, 2009 at 2:20 am |

@I wonder if we are all unwitting “Employees” of Goldman Sacs?“They” want us to help them debase the $/£?
.
.
.
The current situation is IMO just the consequence of the fraudulent US system in general and has unfolded since 1971. Think of it as a “reset” to keep the fraudulent fiat system going.

By devaluing the US$ substantially ( 10:1 ) , debts WW would suddenly become “repayable” in real economic terms not to mention a revaluation of the Gold reserves (supposedly) held by CBs. This would make all the MSM-types happy again so they can continue the stock market fraud , i.e. “NOT” free capitalism.

In that MSNBC interview posted earlier, I heard one of the MSM guys say “We have the finest and most sophisticated and efficient market system” in the world … LOL … made me puke with disgust !
It reminded me of the science behind the atom bomb, which on it’s own is innocent science, but in the hands of politicians, becomes a “destructive bomb” !
They use technology against “us” , and call it “efficient” .. maybe from their point of view of course !

BTW:
Although it is NOT the time to be buying stocks etc., I wouldn’t trust any of the US balance sheets for doing fundamental analysis ; and wonder just how many Enrons there actually are out there.

I mentioned AIG’s trade volume … someone at another Msg-board also agrees that the daily US$-volume traded went from 4.5 mio$ per day to 450 mio.$ per day.
Here’s the link again : http://finance.yahoo.com/q/hp?s=AIG

OK, maybe it’s because the “higher” stock price is now “optionable”, but my guess is that the brokers are making “again” serious money on the higher trade volume. i.e. same old , same old !
Fibon11235 | August 7, 2009 at 2:17 am |

Thanks to Max and Stacy, Phil and Mike2Liverpool.
Good luck.

This dog is lying low as the lions begin to fight, and thanks for FOFOA and you know who, who may or may not see this and will understand.

And last but not least to the Central Banks for buying us all this time your doing a great job even today lol, I know now your not evil for a while I did, I just wanted to understand how things work.

But for balance and to those at Goldman and Sacks….go stuff yourselves till you pop and die.
Mike2liverpool | August 7, 2009 at 2:05 am |

I wonder if we are all unwitting “Employees” of Goldman Sacs?

“They” want us to help them debase the $/£?

Mike
gonzomarx | August 7, 2009 at 1:59 am |

a picture says a thousand words

Bank pumps in another £50bn to aid green shoots of recovery
http://tinyurl.com/lwtdth
Phil | August 7, 2009 at 1:51 am |

Addendum@orchestrated US$ devaluation

If that is the plan – which I think it is – then my only worry is that this will be considered a “normal state of events” such that the current institutionalized system of financial crooks will continue to be able to play their music way into the future.
Phil | August 7, 2009 at 1:45 am |

@limiting Gold sales

The ECBs statement is in direct contradiction of the FEDs approach IMO. Makes you wonder where this will end .

Also makes you wonder if this isn’t all part of a big plan to devalue the US$ “fast” …. no kidding !
i.e. the ECB working in concert with the FED, who can only get rid of the US debt via massive US$ devaluation.
JMHO FWIW
Phil | August 7, 2009 at 1:42 am |

Silver Update 7 Aug 2009
http://www.youtube.com/watch?v=2V0nmKuOGRE

Aussi guy talking about Silver and mentions Denninger, ZH and Chris Martenson on the secret US QE .

4 minutes .