BIS- IMF Looting Sovereign Wealth, ‘Biggest Gold Swap in History’

Posted on July 6, 2010 by stacyherbert| 58 Comments

Stacy Summary: h/t MirrorMirror for this article on the BIS/IMF gold swaps. @snoot – it’s being done in the name of SDR’s.

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58 Responses to BIS- IMF Looting Sovereign Wealth, ‘Biggest Gold Swap in History’

  1. Mongo | July 6, 2010 at 9:37 pm |

    Coordinated fraud, courtesy of BIS

  2. Mother Earth | July 6, 2010 at 10:02 pm |

    I don’t get it. Is this toxic dispersal of gold? Why do these swaps happen?

  3. Happy Dick | July 6, 2010 at 10:15 pm |

    Dang … there is just no stopping them. Shit!

  4. FranSix | July 6, 2010 at 10:34 pm |

    I would say the distribution of physical gold in the market increased the available liquidity for bullion futures. And that, perhaps this is not unintentional, though it may have a temporary effect on the price fix.

  5. Richard Henley Davis | July 6, 2010 at 11:29 pm |

    The biggest gold swap will occur when the realisation that ETFs both physical and synthetic are oversold then we may see some sense and a desire for genuine ‘physical’ gold holdings as opposed to gold tracking speculation.

    Guess what that will do to the price of gold………$5000 dollars per troy ounce will seem a little conservative.

    More like $10,000.

    Even if there was intent to crash the gold price through the destruction of ETF it would only increase the value of physical in the long term.

    Manipulation can only go so far…..especially when gold is reverting to its primary function which is as a currency in its own right or as means to substantiate existing currencies.

    The fundamentals that support gold remain regardless of an influx of gold into the market by the IMF or any other large holders of gold.

    Sovereign debt at current levels is unserviceable because cuts which appease the bond markets are only going to weaken the global economies.

    We are caught between the devil and the deep blue sea.

    The only way forward is to make provision for an impending collapse which as far as i can see involves transferring wealth into gold.

    All other forms of wealth and income are subject to growth within a system that is collapsing.

    BUT….

    This does not mean the game is over.

    This means the public will be left in a state of flux and desparation and they will cry out for a new system that will bring back the security of the old world but only to be replaced with a new order….

    We are then looking at centralised global rule with a new currency and economic infrastructure.

    It will be the only option left for those who are not ready to relinquish their hold over their wealth.

    I would like to think that investing in gold (Which I have done with all my personal wealth) will be the end game but I feel it will be a precursor to the introduction of the global centralised currency.

    There will however be a period where gold will be king but it is at that point I will be looking to convert my personal savings into other forms of hard physical wealth.

    This may seem a little paranoid but I see no other rational outcome for this or arguments to suggest otherwise.

  6. frances snoot | July 6, 2010 at 11:42 pm |

    “Manipulation can only go so far…..especially when gold is reverting to its primary function which is as a currency in its own right or as means to substantiate existing currencies.”

    Aren’t those gold swaps collateral for loans?

  7. Richard Henley Davis | July 6, 2010 at 11:53 pm |

    Hi Frances

    The gold swaps I am referring to have not as yet materialised…that is swapping ETF for physical gold and not taken out by indebted nations or institutions but by investors large and small.

    Yes the IMF is converting the yellow shinny stuff into money in order to facilitate the needs of the unsaveable.

  8. frances snoot | July 7, 2010 at 12:09 am |

    RHD:
    Oh. It’s like this house I rented in Hawaii. The place was infested with termites (wood plantation house). I was painting, put my ladder up against the wall. The ladder went right through the wall: the only thing existing was the paint.

    Termites.

  9. Richard Henley Davis | July 7, 2010 at 12:16 am |

    @Frances

    Precisely!

    How long will it take until the overselling of ETFs backed up by nothing sends investors into a panic selling scenario?

    This may damage gold in the short term but only until investment is transferred or rather swapped into physical holdings.

    Then……look out…..gold will super-spike.

  10. Ptah | July 7, 2010 at 12:17 am |

    Francis & Richard Henley Davis:

    What you are therefore suggesting is that gold ownership is a smart option providing you watch for the time to trade it for ‘the next big thing’. So is all gold ownership a single-minded attempt to create a bubble? It is not the long-term option which some commentators would claim. Please correct me where I am wrong.

  11. frances snoot | July 7, 2010 at 12:19 am |

    Bbbbut will the gold price endure the equities collapse?

  13. Richard Henley Davis | July 7, 2010 at 12:27 am |

    Hi Ptah

    Yes that is pretty much what I am saying (Which is down purely to my own observations and beliefs of the way things are unfolding) but the next big I will be looking at will be related to my desire to keep out of a centralised global system.

    i.e. agricultural land (which I will not touch yet because subsidies in Europe where I live may be cut and drag down the price of farm land) but post gold boom I would look into actual physical wealth such as the fore mentioned agricultural/farm land.

    Even then farm land will not be impervious to taxation through a potential land value tax system that is being hotly debated here in the UK.

    Right its time for bed….hope to continue this conversation at a latter date.

    p.s. if someone can show me an investment in the short medium term that looks safer than gold and is not subject to the current economic constructs I would love to hear about it.

  14. The Dork of Cork | July 7, 2010 at 1:06 am |

    Counterfeit Gold ?

  15. F. Beard | July 7, 2010 at 1:24 am |

    . if someone can show me an investment in the short medium term that looks safer than gold and is not subject to the current economic constructs I would love to hear about it. Richard Henley Davis

    It is the blessing of the LORD that makes rich,
    And He adds no sorrow to it.     Proverbs 10:22

  16. Brandon Sanks | July 7, 2010 at 1:43 am |

    Mccain on radio ”illegals must be sent home no amnesty”. I warned of America moving right and look Mccain pro immigration for many years is now saying this.

  17. Joe | July 7, 2010 at 1:45 am |

    Hey, kids!

    Max said something about $5,000?

    That is all.

  18. Neville Bartos | July 7, 2010 at 1:49 am |

    ‘EU’s Secret Plan to Imprison Filesharers, Ban Free Speech About Piracy Leaks’

    http://www.dailytech.com/article.aspx?newsid=18934

  19. F. Beard | July 7, 2010 at 1:50 am |

    I warned of America moving right and look Mccain pro immigration for many years is now saying this. Brandon

    Well, you don’t think it could be “respectable” bankers that are the root of our problems, do you?

  21. dan valley | July 7, 2010 at 2:04 am |

    BP wants to sell stock to China http://nyti.ms/awl8Fj.

  22. Happy Dick | July 7, 2010 at 2:06 am |

    Whitneys opinion …
    Meredith Whitney: The Rebound In Consumer Spending Is Just The Result Of People Not Paying Their Mortgages

    Read more: http://www.businessinsider.com/meredith-whitney-us-consumer-rebound-2010-6#ixzz0sxEHbf4P

  23. frances snoot | July 7, 2010 at 2:11 am |

    Heh, DanValley. Hope you are doing okay!

  24. Happy Dick | July 7, 2010 at 2:14 am |

    Why would china buy bp stock? Unless they are positioning for fire sale of assets. China no dummy.

  27. Happy Dick | July 7, 2010 at 2:22 am |

    Is BP covering up the beaches to hide oil?

    http://www.youtube.com/watch?v=WaHJf1GLD1E&feature=player_embedded

  28. dan valley | July 7, 2010 at 2:28 am |

    @Frances…after opening me up…they decided not to remove it as it would require extensive bone removal and fusing afterward….Im on the wait and watch program for now.

  30. frances snoot | July 7, 2010 at 2:32 am |

    I recommend kombucha tea, Dan. It saved me once.

  31. Jesse | July 7, 2010 at 2:33 am |

    @Richard Henley Davis

    I liked your comment so well that I have used it as the headline quote for this blog entry. I hope you do not mind.

    “Manipulation can only go so far…..especially when gold is reverting to its primary function which is as a currency in its own right or as means to substantiate existing currencies.” Richard Henley Davis

    Jesse

  32. dan valley | July 7, 2010 at 2:37 am |

    The good news is its a noncancerous nerve tumor…aside from random itense pain that cannot be managed with medication or otherwise I should live a normal life ….Yeah!!!

  33. Zmoore | July 7, 2010 at 2:39 am |

    This IMF-BIS trading in gold futures etc. sounds to me like HFT enabled Gold Plunge Protection on a global basis. I wonder who gets the trading contract and lookahead datalines for all the trades,GS?

  34. Bonn | July 7, 2010 at 3:20 am |

    Like I have said before
    What is Gold ?
    I’d advise anyone who is 100 % into gold to diversify @ least 25 % to 30 % into Health Industry
    Peeps are always gonna need tat.
    Hic ;-)
    PS I am zero into Gold;
    so I may not know what I’m talkin about
    lololololol
    ROFL
    Hic ;-)

  35. Happy Dick | July 7, 2010 at 3:35 am |

    MAX KEISER, rant some on the need to follow Iceland. We need to get back to REAL sovereignty. Sovereignty is the quality of having supreme, independent authority over a territory. Which countries on the planet truly have this? They are under attack.

  36. Happy Dick | July 7, 2010 at 3:37 am |

    Still praying for You Dan.

  37. dan valley | July 7, 2010 at 4:00 am |

    Happy..Thanks….and your correct on the sovereignty issue.

  39. The Man from Glad | July 7, 2010 at 4:05 am |

    @Richard Henley Davis

    “Yes the IMF is converting the yellow shinny stuff into money in order to facilitate the needs of the unsaveable.”

    Like the Euro?

  40. dan valley | July 7, 2010 at 5:34 am |

    A Lottery Winning Streak…But Who Really Wins?

    http://buzz.yahoo.com/buzzlog/93820?fp=1

  41. dan valley | July 7, 2010 at 5:36 am |

    BP shares soar as spill spreads

    http://news.yahoo.com/s/nm/us_oil_spill

  43. babauuumaomoa | July 7, 2010 at 6:58 am |

    March Against Corporate Greed – September 13, 2010 (in rememberance of the Lehman Brothers collpase – RIP) or sooner if you just can’t wait!

  44. Mother Earth | July 7, 2010 at 6:58 am |

    I seems we are all just crowding the corridors of the Titanic, and we haven’t yet realized we are behind the cage doors..

  46. dan valley | July 7, 2010 at 7:25 am |

    Civilizations have only been around for 6,000 years. They may be maladaptive, as resources are channeled to elites http://amzn.to/bGN1mt

  48. MirrorMirror | July 7, 2010 at 8:44 am |

    The Seven Sins of GLD

    ( “GLD” is an Exchange Trades Fund , i.e. not Physical )

    http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=13341:the-seven-sins-of-gld&catid=48:gold-commentary&Itemid=131

    Good read !

  49. Mini US | July 7, 2010 at 9:03 am |

    My question is this:

    If repackaging dodgy debt and selling it on like the sub-prime mortgages is fraud and destined to failure, how is repackaging dodgy, indebted currencies like the Euro and USD and calling it SDR any different?

    Its still debt ridden, repackaged, renamed poop. Isn’t it?

    Basket of currencies? Its a sham.

  50. Mini US | July 7, 2010 at 9:08 am |

    @Dan Valley

    Oh man, you are a strong fella.
    We are with you mate.
    Great to see you back here.

  51. MirrorMirror | July 7, 2010 at 9:09 am |

    Comment from Jim Sinclair’s JSMindset July 6, 2010

    …
    … Reports about a large gold swap done by the IMF are being colored by a glib analysis of what a swap is as compared to a lease.

    If the IMF was legally able to and leased this gold, I would agree with the fear of market sales as a means of bailing out euro banks or other entities.

    Gold swaps are done with monetary authorities. Gold leases are done with “for profit entities” such as gold banks.

    Gold Swaps are usually undertaken by monetary authorities. The gold is exchanged for foreign exchange deposits with an agreement that the transaction be unwound at a future time at an agreed upon price. The IMF will pay interest on the foreign exchange received. Historically swaps occur when entities like the IMF have a need for foreign exchange, but do not wish to sell the gold. In this case gold is a leveraging device for needed currency to meet requirements.
    …
    …
    … The IMF swap so talked about today is not a threat to the gold price. In retrospect neither was the gold leasing as it was happening $1000 points lower. Certainly the swap is not and the various commentators today are not familiar with the differences.
    …
    …

    http://www.investorvillage.com/smbd.asp?mb=144&mn=48261&pt=msg&mid=9234485

  52. Mini US | July 7, 2010 at 9:12 am |

    If the US insist on this ridiculous course of fiat worship and manipulation, Russia and China will eventually mess them up.
    No hurry.

  53. Mike/Liverpool | July 7, 2010 at 9:26 am |

    GOLD
    GETTING
    KILLED!

    Keiser, you & Schiff & Marc Faber& the rest have bankupted EVERYONE!
    Mike

  54. alister | July 7, 2010 at 9:29 am |

    Causes and Lessons Learned from The Financial Crisis
    Presentation by E. Gerald Corrigan, Managing Director Goldman Sachs, to the Trilateral Commission, 2009

    http://www.trilateral.org/AnnMtgs/PROGRAMS/09tokyopdf_folder/Corrigan_financial_crisis.pdf

    I genuinely think some Western leaders just are in over their head and do not know who to look to and / or trust for advice even on an issue such as this. I know that seems obscene saying that as you think they would have the best people on tap and b as all knowing as they humanly could but I just dont think reality is like that……..

  55. Mini US | July 7, 2010 at 9:45 am |

    @Dan Valley

    Hey, That Chris Whalen is an interesting interview.
    Had all the CNBC folk listening anyway, and thats no mean feat.

  56. The Man from Glad | July 7, 2010 at 1:16 pm |

    @Mike/Liverpool, Maybe that’s what this gold swap is intended to do.

  57. babauuumaomao | July 8, 2010 at 4:48 am |

    I guess us “hobos” don’t get any gold? Is that the deal?

  58. swell | July 8, 2010 at 7:51 pm |

    What would a world solely on the Gold Standard start to look like?

    Maybe like this:

    http://counterpunch.org/sanders07082010.html