Tag Archives: IMF

Are Central banks Really Net Sellers Of Gold Now?

The following commentary is from Chris Powell, the Treasurer of GATA. I fully endorse his view. In fact, when the report initially surfaced that the World Gold Council reported Central Banks to be net sellers of gold in September, I summarily dismissed it for the reasons stated below by Chris. GATA

According to the old saying, sometimes attributed to Mark Twain, there are three kinds of lies: ordinary lies, damned lies, and statistics.

Of course not all statistics are lies, but statistics always need to be challenged when the entities issuing them have an interest in spinning them a certain way, as government almost always has such an interest.

So while it is understandable, given the slovenliness and corruption of mainstream financial news organizations and market analysts, it is still disappointing that central bank gold statistics are routinely accepted without question, even as it is the longstanding policy of the primary compiler of these statistics, the International Monetary Fund, to fudge the numbers.

That is, according to the March 1999 secret report of the IMF’s executive staff, the agency’s central banks are authorized to conflate gold in their vaults with gold they are lending. The acknowledged purpose of this fudging is to prevent the world from discerning just how much central banks are manipulating the gold and currency markets – see this link: GATA.

Lately there have been many reports asserting that central banks have become net sellers of gold after many years of being net purchasers. But as that IMF report suggests, central banks are never more misleading than they are with gold.

Indeed, the location and disposition of national gold reserves are secrets more sensitive than the location and disposition of nuclear weapons. For nuclear weapons can only destroy the world while governments understand that control of gold is control of the valuation of all capital, labor, goods, and services — control of nearly everything:  GATA.

While the recent news stories and market commentaries assert that central banks are now net sellers of gold, the authors of those stories and commentaries don’t really know that. They know only what central banks report doing. And of course nobody questions this, though throughout the years central banks have both sold or leased gold and acquired gold secretly. China has gone as long as five years acquiring gold without reporting the acquisitions to the IMF.

The gold data is especially ripe for questioning now in light of the assertion a few days ago by London metals trader Andrew Maguire that China has begun bypassing the London bullion market in its acquisition of gold and has begun acquiring unrefined gold directly from mines in Africa and South America.

[Note: the report from Maguire explains the highly irregular data that has been reported by the Shanghai Gold Exchange and the paucity of imports into China from Hong Kong; gold purchased directly from mining companies in all probability is going to the PBOC and imported through Beijing and Shanghai; gold imports through those two ports are intentionally not reported per this 2014 report from the South China Morning Post]

Maguire identified no sources for his assertion, but any financial news organization that wanted to get serious with its reporting about gold and central banking could easily pursue the issue by inquiring with central bankers, gold traders, gold mining companies, and customs agencies. Of course few such sources might want to go on the record, but some might comment confidentially.

At least news organizations and market analysts could acknowledge that while government statistics may not always be damned lies, they also aren’t always necessarily the truth either, especially on a subject as sensitive as gold.


The explosive questions the gold riggers won’t answer-and the press won’t ask

Over the years, I’ve asked several skeptics of the idea that Central Banks and Governments, using the bullion banks as their agents, manipulate the gold price this question:   The Big Banks have been convicted and fined numerous times for manipulating interest rate and currency markets.  Is it realistically conceivable given this fact that they would leave the gold market alone?  The question, of course, is rhetorical and I’ve yet to receive an answer.

The answer is obvious to anyone who has looked at the facts.  I have written several articles with Paul Craig Roberts detailing how the manipulation is executed on the Comex and the motivation behind the manipulating the gold market.  Remarkably, there are public notes of a meeting chaired by Henry Kissinger in 1974  that discusses the importance of removing gold completely from the monetary system which is conveniently ignored.

The following is a re-post of an article posted by GATA’s Chris Powell. Even if you have your had in the sand and refuse to believe that Central Banks and Governments manipulate the global gold market using paper gold derivatives, at least brush the sand out of your eyes and read this carefully:

How easy it would be for any major financial news organization or trade association to confirm, expose, and combat the rigging of the gold market by governments and central banks. Such an effort could start with the documentation, most of it from official sources, collected by GATA and compiled here: Taxonomy

Everything could be nailed down to the present moment by a few specific questions put to the key participants in the rigging. These questions already have been prepared and posed, just not publicized enough.

— Three months ago U.S. Rep. Alex X. Mooney, R-West Virginia, wrote to the secretary of the treasury and the chairman of the Federal Reserve asking what the U.S. government’s policy on gold is and whether it remains, as government records from years ago establish, to drive the monetary metal out of the world financial system. Mooney also asked whether the U.S. government, directly or through intermediaries, like the Bank for International Settlements, trades in gold and gold derivatives and what the purposes of any such transactions are. Mooney’s letter is posted at GATA’s internet site here: Mooney Letter

Mooney has received no response.

– Last November GATA put similar questions to the BIS. What, GATA asked, is the purpose of the gold swaps and derivatives purchased and sold by the bank and the purpose of the bank’s involvement in the gold market generally?

The bank replied promptly but only to say it would not answer the question: BIS Letter

— Five weeks ago your secretary/treasurer and GATA consultant Harvey Organ wrote to the comptroller of the currency in the Treasury Department, Joseph M. Otting, whose office regulates the banking industry, calling attention to the recent explosion in use of the emergency procedure of “exchange for physicals” to settle gold and silver contracts issued on the New York Commodities Exchange by government-regulated banks. The financial risks undertaken by the banks in these transactions, GATA wrote, apparently were not being reported to the comptroller.

GATA’s letter concluded: “Could you review this matter and let us know your conclusions?” The comptroller has not responded.

Please click here to read the rest – it’s worth the time spent:   Unanswered Questions About Official Gold-Rigging

The West Is Collapsing As The East Ascends

The 24 Mega Green City infrastructure project in India will connect Delhi with Mumbai, creating a commerce corridor incorporating 21st century technologies and amenities. – Interview with ZincOne Resources’ Jim Walchuck, The Daily Coin

It seems absurd that Asia is willing and able to build high-speed “bullet” trains to connect large population centers while the United States struggles with an antiquated Amtrak rail system often beset with service interruptions and lethal accidents.   The truth of the matter is that the major U.S. metropolitan areas are beset with massive loads of debt, including a ticking-time debt-bomb in the form of several trillion dollars in unfunded public pension funds.

The Delhi-Mumbai Industrial Corridor is a major infrastructure project that India is developing with Japan. The project will upgrade nine mega industrial zones as well as the country’s high-speed freight line, three ports, and six airports. A 4,000 MW power plant and a six-lane intersection-free expressway will also be constructed, which will connect the country’s political and financial capitals.  – The Daily Coin

The 24 Mega City project underscores the economic, political and cultural contrast between the eastern and western hemisphere countries, with the sun setting in the west and rising in the east.  The west is mired in a catastrophic web of Government-heavy economies that exist on the life support of trillions in money printing and debt issuance. True, some countries like China have relatively high debt levels but they are offsetting that form of fiat currency debasement with massive gold accumulation.  The heart of the problem is highlighted by the graphic below (click to enlarge):

The budget for the U.S. Government will primarily be spent on social security, defense, medicare/medicaid and interest on the Government’s debt. Those five items will burn more two-thirds of the Government’s budgeted expenditures in Fiscal Year 2017.

But don’t bother asking how the Government plans on paying for that.   The funds will come from oldest forms of currency debasement: money printing and debt issuance.  And Trump’s proposed spending agenda will accelerate the growth rate of both .

It’s amazing that the U.S. Government seems to have unlimited funds available to spend on guns, bullets and surveillance of the citizenry.   Ranked in order of expenditures, The U.S. spends more on its military than the next 14 highest ranked countries.  “On the books,” the U.S. spent $597 billion in 2015.  That was 4x more than China and 9x more than Russia (source:  International Institute for Strategic Studies).

While the west, led by the United States, advances its collapse with rampant currency debasement and unbridled imperialism, the east is investing its resources in the future – in the advancement of its civilization.  Perhaps the hallmark of this contrast is best represented by the flow of physical gold from west to east.  The Shadow of Truth has devoted today’s episode discussing some of the signs pointing to the collapse of the west and the rise of the east:

The SDR Is A Trojan Horse For Global Elitists

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.  – Alan Greenspan, “Gold And Economic Freedom” (1966)

The Daily Coin posted an interview with Dr. Warren Coats, one the architects of the SDR.   This is a must-listen for anyone who wants to understand how and why the SDR is nothing more than the monetary instrument of the one world, one Government globalists.

At first, Coats’ statements are infuriating – especially the assertions that are entirely incorrect, like “China doesn’t produce much gold” [sic] – but if you stick with it, you begin to understand why Sun Tsu said “keep your friends close and your enemies closer.”

TDC’s conversation with Dr. Coats provides invaluable insight into the “belly of the beast.” Throughout the interview, you can hear Rothschild’s famous quote about money echoing: “GIve me control of a nation’s currency and I care not who makes the laws.”

In this latest episode of the Shadow of Truth, we dissect Coats’ answers to several of Rory’s questions and explain why the SDR is nothing more than a Trojan horse of sorts designed to provide a “plausible” replacement of the dollar and, more significantly, to advance the New World Order implementation.

Willem Middelkoop: The New SDR Will Lead To Gold And Silver Shortages

My Shadow of Truth partner has posted a compelling interview on his Daily Coin website with Willem Middelkoop.  “The Chinese are not too happy about the current dollar world reserve system and have been quite open and vocal about their wish to change the existing monetary system toward a next phase…”

The Daily Coin/Willem Middlekoop:


$100 Billion BRICS Fund: Yet Another Nail In U.S. Dollar Hegemony

The BRIC coalition’s alternative to the United States’ IMF is now fully funded and operational.   This new emergency lending agency will disrupt the United States Government’s and EU’s ability to conduct predatory financing raids on countries seeking international financial aid.

Perhaps it means that the next time a Greece event develops, it won’t end with either the U.S. or the EU engaging in full-scale confiscation of the target country’s primary national assets.

The $100 billion BRICS Contingent Reserve Arrangement (CRA) has become fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara.

“The first meetings of the governing bodies mark the start of a full-scale operation of the BRICS Contingent Reserve Arrangement as an international institution with activities set to enhance and strengthen cooperation,” said a Russian Central Bank statement on Friday.

BRICS leaders Xi Jinping, Vladimir Putin, Jacob Zuma, Narendra Modi and Dilma Rousseff witnessed the signing of the agreement on the CRA in the Brazilian city of Fortaleza in July 2014.

You can read the rest of this article here:  $100 Billion BRICS Monetary Fund Now Operational


Tsipras Sold Out – Who Cares? The Global Economy Is Still Collapsing

The Greece situation was “fixed” once the the United States IMF began to flex its muscles openly.  Former Assistant Treasurer, Paul Craig Roberts – who can speak from a position of authority on these matters – explained to the world why this was the case a week ago:  Greece And The EU Situation.

So Tsipras, like every modern political leader in every western country, took a big bag of cash from the U.S., and capitulated to the EU’s demands.

Who cares?  Anyone with two brain cells to rub together could have figured this one out.  If Greece fell, it would have triggered the nuclear daisy chain of credit default swaps, of which Deutsche Band, Citigroup and JP Morgan are the largest bag-holders.

Furthermore, how does this change the fact that the global economy – including and especially the U.S. – is collapsing?  Seriously.   Greece is getting stuffed with more debt that it will never be able to repay in exchange for some key national assets that the EU will own once Greece defaults again.  At best this just puts out the fuse which will inevitably light the global debt and derivatives time bomb for a while longer.

In fact, the last several weeks of Greek drama have done nothing more than provide a great cover for ongoing and obvious economic deterioration occurring.  The numbers are especially prevalent in the U.S.:


The graph above shows the year over year change in retail sales.  Despite $3.6 trillion in monetary stimulus, the Fed has been unable to stimulate a boom in retail spending.  This reflects that fact that the real median household income of lower now than it was in 2007.

The percentage of Americans who are counted as part of the labor force is at its lowest level since 1977, when the majority of households were still one-income families.  So much for Obama’s self-congratulatory job boom.  Obama wouldn’t know a real job if Henry Kissinger shoved it up is ass.

As for auto sales, it’s taken a record level of debt issuance and, more troubling, a record level of subprime auto loans, in order to stimulate a mini-bubble in auto sales.  This has only succeeded in getting auto sales to bounce back to their 2004 levels.  But where will the next round of debt-stuffing come from, as the average loan term now extends well beyond 7 years?

The housing market is next.  I know first-hand that home listings in Denver are starting to spike up in good ‘ole 2007 parabolic fashion, especially in the over $750k segment.   I receive “price change” alerts in my email several times a day for homes listed in central Denver in every price segment.  In the “McMansion” suburban neighborhoods, many areas have several listings per block now.  It’s quite stunning.

I know from reports from readers in other large MSA’s that they are seeing a similar occurrence in their area.  In fact, the Dr. Housing Bubble blog is now reporting the home inventory is up 70% from 2013 in three major inland counties:  Dr. Housing Bubble Blog

Point of note:  Colorado and SoCal led the last housing bubble implosion.  We may see a continued bounce in home sales for June, which will be reported soon.  But most of the data that go into the June sales reports – both existing and new homes – are lagged and ultimately reflect contracts that were signed in April in May, when mortgage rates were 100 basis points lower.

Despite the fact the Fed has directed $1.8 trillion of its $3.6 trillion QE directly into the housing market via direct mortgage purchases, home sales volume for both new and existing homes is less than 50% of the housing bubble peak.  The only result accomplished by the Fed has been to ignite rampant home price inflation, which has pushed a lot of suckers into chasing homes that they will have been able to have buy a year from now at a substantial discount.  These newly minted homeowners and stuck flippers will find themselves significantly underwater in their mortgage.

As you can see, the Greek drama has served the purpose of providing a redirection from the ongoing economic collapse.  In fact, lost in this absurdity of the past week’s Kabuki theatre are other points of trouble quickly rearing their ugly heads…What ever happened with Puerto Rico’s impending debt collapse?…