Countries asking for their US held gold - will it cause a problem?

As stated Joe -> its both.

Please Register or Log in to view the hidden image!

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
- Henry Ford

& As some like me may read there are Six of the directors that, are elected by member commercial banks. ( Seems like there maybe could be a possible commercial interests..)
Then theres The Federal Open Market Committee, or FOMC, is the Fed's chief body for monetary policy. Its voting membership combines the seven members of the Board of Governors... ( never heard of them, an imo they are secretive an unknown to most)

the most frequently used tool is open market operations, the buying and selling of U.S. government securities.. -. (Mostly all quotes from above mentioned link) .. imo this may be very risky.. One falls its Dominoes!
Then (quote- Reserve Banks process commercial checks. Over the past decade, the Fed has led the industry's push to replace paper forms of payment, such as checks, with electronic forms of payment that offer lower risk and higher efficiency. The Fed now transmits electronic images of checks and allows electronic deposits and payments.)
- An electronic "cash", limited currency is uber BAD. Less people would have cash on hand, an also in a emergency situations.. We need "paper, country coin types of currency"
. . . Then there is that little known. - Regulation D.
Then there is this link... ->
http://m.huffpost.com/us/entry/2957937
->

The government Dollars are not backed. Basically by Gold, BUT we need gold, for other countries.. why is there so much faith in the "empty Dollar"? Is there a better way? How much gold could we have? An how much is in ?"bullion" for marketing? An if we mostly use stocks, trades, an such why is there not a "backing" of some sort?
- "Whoever controls the volume of money in any country is absolute master of all industry and commerce... - not sure
- "He who controls the money supply of a nation controls the nation." - James A. Garfield
- “If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations.”
- Andrew Jackson
- We can't be so fixated on our desire to preserve the rights of ordinary Americans."
- Bill Clinton, USA Today on 3/11/93, page 2a

-> "Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again... If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.”
- Sir Josiah Stamp, Director, Bank of England, 1940.

 

Log in or Sign up to hide all adverts.

Read the link..
- it Was push through the FEDERAL congress.
Articles 1 section 10 do a web search... The same sponsors pushed the Federal Reserve Act and the Sixteenth Amendment through Congress in 1913.

-»

http://thetruthbeacon.blogspot.com/p/fraudulent-federal-reserve.html?m=1

 

Log in or Sign up to hide all adverts.

In 2014, Germany got 85 tonnes of its gold back (but only 5 in 2013) and Netherlands got 122 tonnes back from US. SNB cuts tie to Euro. Is something going on?

Please Register or Log in to view the hidden image!

Please Register or Log in to view the hidden image!

Price of gold is up $100/ oz in 2015.

See NYTimes version of today's Bundesbank story and more photos at: http://www.nytimes.com/2013/01/17/b...central-bank-to-repatriate-gold-reserves.html

 

Log in or Sign up to hide all adverts.

Except it isn’t stated, the Constitution clearly and explicitly addresses state government, not the federal government.

That statement is frequently attributed to Ford, but I cannot find a credible source for it. There are lots of falsely attributed statements. So unless you can say when and where Henry Ford said or wrote that statement, I think we can safely say it is a specious attribution.

The Federal Reserve board of governors are appointed by the POTUS and approved by the Senate and the Board of Governors oversees the individual Federal Reserve Banks. Each individual Federal Reserve Bank has its own 9 member board of directors six of whom are elected by banks. Three who are supposed to represent the bank and 3 who are supposed to represent consumers and the Board of Governors appoints 3 members to the board of each individual bank board.

Well, I don’t find it surprising you have never heard of the Federal Reserve Board of Governors. Most people don't read business and economic news. But the FOMC is well known inside the business and finance communities. They are not secretive. They meet 8 times a year and after each meeting they release a policy statement which is followed by a press conference and the complete minutes of the two day meeting is released to the public. And the FOMC chairman, the Federal Reserve Chairman, briefs congress twice every year…pretty public for a “secretive” organization. Open your eyes and ears and you will see and hear them. But if you never look, you will never find.
http://www.federalreserve.gov/monetarypolicy/fomc.htm

How so? They have been doing it for nearly a century. One would think if it were all that risky, something adverse which could be attributed to buying and selling of government securities would have occurred over the course of that time. Every purchase the Fed makes can be sold and every sale can be repurchased. Where is the risk? And then as previously pointed out you have history, which shows with the Fed, recessions have been fewer and of shorter duration and periods of prosperity have been stronger and more long lasting.

Yes, the Fed is a bank clearinghouse. That is what those individual Federal Reserve Banks do all day long. And it is more efficient and less risky.

We do have paper and coin currency. So you would feel better and more secure sitting on pile of paper? If you feel that way, then don’t use your credit and debit cards and stuff you money in your mattress or bury it in your yard.

Regulation D was enacted in 1933 with the Securities Act of 1933 and it has nothing to do with the Federal Reserve or the FDIC or your link. It might be little known to you your average Joe, but certainly isn’t unknown to anyone who has been educated in business or finance. By the way, your link is a little dated. No one in the US is looking to do anything untoward with bank deposits. The US immediately increased bank deposit insurance to $500,000 during the crises.

Because the gold standard isn’t needed, no currency in the world is backed by gold. The value of the dollar, the value of any currency, resides in what it can purchase…just like gold.
http://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/

You have some more specious quotations. I don’t see how any are relevant.

 

It's funny and sad, anything you don't like was "pushed" through. If you like the legislation, then it was pass by overwhelming popular accord - even though it wasn't. Two thirds of Congress voted for the 16th Amendment and three quarters of the states ratified the amendment. The amendment wasn't by any stretch unpopular.

 

As always, it is you may "buy high" and "sell low" later. This seems almost certain to be the case for Treasury bonds the Fed has bought in QE etc. programs as they interest rates on them were at historically low levels. If interest rate only double, still well below historic rate, Fed takes a 50% loss if it sells. This is a major reason why Fed has admitted it must "hold to maturity" and can not reduce the ~ 4 trillion added to its balance sheet. (Even collecting cash from Treasure does not do that!) Effectively that freshly make Fiat money, can not be removed.

"Fortunately" the slow "recovery" has made most of it just sit on the banks balance sheets (Too few want to borrow ) and they of course, don't hold it as cash in their vaults - they mainly return it back to the treasury, buying bonds - this also helped Fed suppress interest rates to historically low levels.

PS I put "Fortunately" in quotes as it is sad that the economic is so anemic.

 

Please Register or Log in to view the hidden image!

Vertical scales: Right is dolars/ ounce & Left (for colored bars) is contract volume.

 

And where is your evidence the US is "being slow"? And what makes you think gold gives one "monetary credibility" - whatever the hell that is?

 

You keep applying household rules to sovereigns, and they don't apply as has been endlessly pointed out to you over the years BillyT. Government isn't a for profit operation. The Fed doesn't buy and sell assets to generate profits. The Fed buys and sells assets to affect the supply of money and implement its monetary policies. It's about money supply, not profit. Where did the Fed say it must hold to maturity? The Fed never said that BillyT. You are making stuff up again or using specious sources again.

 

I was only pointing your error / answering your question.
You said: "Every purchase the Fed makes can be sold and every sale can be repurchased. Where is the risk?"

I never said Fed was trying to make a profit as other buyers and sellers do. - That is, I never suggested the straw man you created and then attacked.

To answer your question, now bold, I replied: "By buying high and selling low."
I also noted that as most of 3+ trillion bought as part of the QEs was at interest rates at about 1/3 of the of their historic level, if the Fed did sell when rates are more normal, they would indeed eat a large loss. You know that price of existing bonds falls when interest rates rise, but some may not so I note that fact.

I will agree that Fed did not say "must" - only stated (when this likely loss was pointed out by others, not me) that they could avoid the loss by holding to maturity. The "must" follows by logic if they want to avoid taking loss, and interest rates do rise.

 

Here is the foundation of that claim, graphically presented:

Please Register or Log in to view the hidden image!

 

This is why the Fed can legally claim to own all the gold at Fort Knox, even though it appears (see post 31 analysis) that nearly 4,500 tons of it have been leased out:

Usually the gold is leased out to a large "bullion company" that takes delivery, sells the gold and/or leases part out to another bullion company.* Thus, by the Eurosystem’s International Reserves, Guidelines, the owner and one or more bullion companies, all can simultaneously carry the SAME gold on their books as "owned." And worse, any that the bullion companies(s) sells to industry will never be returned. (Some is probably in the computer I'm typing on.)

For example, it is widely believed that cash rich Apple is currently buying gold for the gold cases of its premium "smart watch." When the original owner's granted lease is up and not all (perhaps none) of the gold is returned, the lease is "rolled" just like maturing bonds are "rolled" not paid off usually. In the rare cases when the lease originator wants the gold back, instead of a continuation of the lease "rent" (Typically ~1% / year) the lease holder must enter the gold market and buy the gold to return. This is why almost all gold bars are in the London Good Delivery, LGD, from.

For example, the 5 tons that Germany first got back of the 300 tons given to NYC Fed when West Germany feared that the USSR might have East Germany invade, were old "metric bars" not in LGD from. Thus almost immediately those old bars were re-cast into LGD form. Where this took place is not very clear. Both Frankfurt and the Fed have facilities to re-cast gold into LGD from. Now Germany can, as many central banks do, earn slightly more than the annual storage cost by leasing their LGD bars out.

* Bullion companies have been very profitable, but are exposed to great risk if the price of gold is rising at a significant rate. Thus they, in addition to many banks, including Goldman Sucks, are now being investigated for illegal manipulation of the prices of gold (in well organized secret conspiracies that have tried, with considerable success, to hold the price of gold low), despite China and India buying more than is annually produced for sale.

 

You keep contradicting yourself. How can you be taken seriously?

 

As you have been told many times now, the Fed owns NO GOLD and it doesn't trade gold. The US Treasury retains US gold reserves but it doesn't trade them. Only Congress can give that authorization. Perhaps you can identify the law which empowers the US Treasury to trade US gold reserves?

Further, there really isn't a need for central banks to lease gold because no where in the world is gold used as a currency. Other than "I want to own gold" or to prop up local gold production, a central bank has no need to own gold.

If a central bank wanted gold , they would just purchase gold. Renting gold makes absolutely no sense.

 

Here is video on topic of posts 31 & 32:
After this video ends watch Congressman Ron Paul's interview. - He wanted an audit.
In reply to Joe's post 33 & 34, I admit I was not technically accurate about the ownership of gold at Fort knox. Joe is correct the Gold at the Fort Knox facility is owned by the US Treausry, not the Fed, or perhaps both are just custodians for the true owners - All Amercians. To me this technicality is not a big deal.
The two questions that are important are:
(1) is the amount of gold claimed (by Fed, I think) to be there actually there and in LGD form?
AND
(2) What fraction, if any, has been leased out to cover part of the storage cost? Wanting to cover costs, at least in part, is not any assertion that the Fed's trying to make a profit. Congress has charged the Fed with two, somewhat conflicting tasks: Stable money and full employment, in simple terms.

Neither question has been answered in more than six decades by independent audit. There have been periodic audits by the Fed's own staff, but those audits are like the fox, guarding the hen house, reporting that all the chickens are still living.

 

More than 10 of the Biggest Banks Face Scrutiny Over Price Fixing of Metals, Especially Gold {Can you smell conspiracy? OR was it just change?}