Germany grabs the Gold

[Mega]

http://www.telegraph.co.uk/finance/f...or-Europe.html

Read between the lines
Mike

[thriftyandboringinohio]

Re: Germany grabs the Gold

Nice find, Mike. It's not between the lines, it's spelled out:

...Italy and other states would have to pledge gold and other forms of collateral equal to 20pc of their debt in the fund."The assets could be taken from the country's currency and gold reserves. The collateral nominated would only be used in the event that a country does not meet its payment obligations," said the proposal...

I have to wonder if Spain, Italy, Portugal and Greece have the 20pct gold or currency reserves to put on the table as collateral.

[coolhand]

Re: Germany grabs the Gold

Nice find, Mike. It's not between the lines, it's spelled out:



I have to wonder if Spain, Italy, Portugal and Greece have the 20pct gold or currency reserves to put on the table as collateral.

Absolutely they do. Spain has 280 tons; Greece 111 tons; Italy 2,451 tons (3rd biggest country in the world); Portugal 382 tons. http://en.wikipedia.org/wiki/Gold_reserve

And the Euro's reserves are 60-70% gold. So as gold prices rise, the Euro strengthens while the dollar weakens.

This whole Euro mess could be over very quickly. ECB revalues the ECB region's gold at $20,000/oz, buys back all EU sovereign debt at par. EU crisis over, banks recapitalized, check to you Washington.

At that point the USD crisis would begin & force Washington to revalue its gold higher.

[thriftyandboringinohio]

Re: Germany grabs the Gold

Absolutely they do. Spain has 280 tons; Greece 111 tons; Italy 2,451 tons (3rd biggest country in the world); Portugal 382 tons. http://en.wikipedia.org/wiki/Gold_reserve

And the Euro's reserves are 60-70% gold. So as gold prices rise, the Euro strengthens while the dollar weakens.

This whole Euro mess could be over very quickly. ECB revalues the ECB region's gold at $20,000/oz, buys back all EU sovereign debt at par. EU crisis over, banks recapitalized, check to you Washington.

At that point the USD crisis would begin & force Washington to revalue its gold higher.

Thanks, coolhand.

[astonas]

Re: Germany grabs the Gold

Fascinating!

Germany's fear of inflation is certainly being directly addressed by the gold collateral, which has an almost folklorish respect that still carries over from the hyperinflation.

I'm not sure that an instant revaluing gold to a high point is the next step. Such a move would have to happen very gradually if it is to happen without causing a panic, and a sudden plunge in the velocity of money. The math works, (as FOFOA and others have commented before) but the math leaves out the awareness of psychological impact that TPTB have. I would guess this is a still a transition they believe can be "managed".

[*T*]

Re: Germany grabs the Gold

Such a pegging would stem panic not cause it as it could be done overnight and be presented as a fait accompli. It is what I would do and I think would solve the problem. Therefore I doubt they will do it.

[Mega]

Re: Germany grabs the Gold

Thanks Gang
But am awaiting "Metalman" thoughts on this, you know he loves coment on my "Wisdom":-

[Mega]

Re: Germany grabs the Gold

He always reminds me of............DR Smith

[doom&gloom]

Re: Germany grabs the Gold

Absolutely they do. Spain has 280 tons; Greece 111 tons; Italy 2,451 tons (3rd biggest country in the world); Portugal 382 tons. http://en.wikipedia.org/wiki/Gold_reserve

And the Euro's reserves are 60-70% gold. So as gold prices rise, the Euro strengthens while the dollar weakens.

This whole Euro mess could be over very quickly. ECB revalues the ECB region's gold at $20,000/oz, buys back all EU sovereign debt at par. EU crisis over, banks recapitalized, check to you Washington.

At that point the USD crisis would begin & force Washington to revalue its gold higher.

First one officially out of the gate will be the "winner"!

[shiny!]

Re: Germany grabs the Gold

Absolutely they do. Spain has 280 tons; Greece 111 tons; Italy 2,451 tons (3rd biggest country in the world); Portugal 382 tons. http://en.wikipedia.org/wiki/Gold_reserve

And the Euro's reserves are 60-70% gold. So as gold prices rise, the Euro strengthens while the dollar weakens.

This whole Euro mess could be over very quickly. ECB revalues the ECB region's gold at $20,000/oz, buys back all EU sovereign debt at par. EU crisis over, banks recapitalized, check to you Washington.

At that point the USD crisis would begin & force Washington to revalue its gold higher.

If this happens, I have the feeling they'll find a way to ban private ownership of gold, or tax the sale of gold at something like 90%. They will not let small gold owners and savers profit from this.

As the worldwide fiat money experiment ends, rather than returning to gold-backed money, I think it more likely that governments will switch to a new all-digital currency, name and value to be determined. Governments and central banks will keep the gold in their vaults, but the average joe and jane will be limited to digital money. I've got nothing to back this theory, it's just a hunch.

[Woodsman]

Re: Germany grabs the Gold

[shiny!]

Re: Germany grabs the Gold

Martin Armstrong agrees with you, Shiny:

"The real goal is to eliminate even the paper dollars. They want everything electronic so they can capture every penny of taxes. "

http://www.martinarmstrong.org/files/Real Conspiracy/index.htm

Well that's certainly depressing. I was hoping people would tell me I'm being paranoid.

[astonas]

Re: Germany grabs the Gold

Well that's certainly depressing. I was hoping people would tell me I'm being paranoid.

Sadly, the state of the world is shifting to a point where the "paranoid" are right with increasing frequency.

[shiny!]

Re: Germany grabs the Gold

Sadly, the state of the world is shifting to a point where the "paranoid" are right with increasing frequency.

You're right, and that's even more depressing. I love my country and fear my government as Thomas Jefferson advised.

[Mega]

Re: Germany grabs the Gold

Ah....................."Great minds think alike"
http://maxkeiser.com/2012/06/14/germ...-endgame-gold/