Vatic Note: Oh, this is hilarious. The author of this article has no clue what is going on and the corruption that exists in the Federal Reserve. Either that or he does and is aiding and abetting in the scam trying to make it sound like this confiscation is a good idea. I hope I am misreading this piece. I will reread it again before I put it up, but so far, it appears he is trying to sell this as the Governments solution to their problems or our problems, by buying up the gold out of the market place. What a laugh. They will take it and not pay us a penny for it. Its the last confiscation of wealth from the cattle before shutting the barn door. Either that or they will set the price they will pay for the gold and probably around 60 dollars an ounce. Not acceptable. Guns and Gold will stoke a revolution for sure.
I believe they are doing this because they know that Nibiru is on the way and rather than have the gold lost in the flooding, they will confiscate it to begin again when they come back up from underground. Its how they justify it in their own minds.To them then, its not stealing, its preserving the wealth in their care until the "Rahm emmanual crisis" is over and taken advantage of by the khazars.
Remember, some years ago under Bush an EO was signed that made it legal for the government to force banks to open safety deposit boxes upon demand without a court order and to confiscate whatever they find in there and it forbid the banks from notifying the client or telling anyone what happened. I believe we either did an email on that or a blog. Will try to find it and link it up here.... but anyone who believes the gov intends to pay market value for gold to the grassroots, is not paying attention or has a deficit in the brain dept that can be fixed with doses of Coconut oil. lol
A Step Towards Gold Confiscation
In attempting to stimulate risk appetite by taking “safe” assets out of the market, the Fed has actually achieved precisely the opposite of stimulating productive investment. First, it has turned bond markets into a race to the bottom as bond flippers end up piling into the very assets that the Fed is trying to discourage ownership of — because who care about low yields when the Fed will jump in at an even lower price floor, thus assuring the bond flippers a profit?
Second it has energised other safe asset markets (such as gold) as longer term investors look for alternatives to preserve their purchasing power in the context of a global economic depression.
The Fed is firing at the wrong target; the real problem — the thing that is causing investors to scramble for safe assets — is an economic depression brought on by (among other non-monetary causes) the deleveraging costs of an unsustainable debt bubble. Without addressing the problem of excess total debt — and quantitative easing aims to increase lending — the Fed is firing blanks.
However, there seems little prospect that the Fed will listen to the debt-watchers who actually predicted the crisis. The likelihood is that the Fed will continue to attempt to take safe assets out of the market. And after treasuries, what will the Fed try to take out of the market?
Izabella Kaminska writes in FT Alphaville:
Fed purchases are the equivalent of hoarding the system’s supply of safe assets on the Fed’s own balance sheet, and in so doing preventing private investors — especially money market investors – from investing in the assets on favourable terms.
While this is mostly the point of QE — the idea, after all, is to stimulate risk appetite and cause investors to change their portfolios — a continued lack of risk appetite means the money created, rather than flowing into risky securities as hoped, is only crowding out the last remaining safe securities in the market instead. The consequences are negative rates and principal destruction — a lethal combination that is arguably far more dangerous and deflationary than no QE at all.
The idea that the Treasury could once again become the gold buyer of last resort, (VN: Buyer my butt, more like confiscator or thief if you want to use accurate terms) in exchange for liquidity, is interesting to say the least. Not only would such a strategy ease the squeeze in the Treasury market, it would do so without compromising the liquidity effects of QE.
What’s more it could help to support and stabilize the gold price, while taking zero-yielding safe assets out of the system in favour of yield bearing ones — giving money markets a fighting chance for survival in terms of yields.
While gold purchases have never been communicated as official central bank policy, there’s no denying that a shift in this direction is taking place. Be that wittingly or unwittingly.
A little behind the curve.
Bernanke has already heavily targeted yields on treasuries which have absorbed liquidity that has departed from productive ventures. But in recent years gold has offered a significantly increased yield over treasuries.
So what’s a central banker who wants to force investors into productive ventures to do? You can’t print gold — but you can buy it, and take it out of the marketplace.
And as the price of gold (in fiat) continues to rise, buying gold is exactly what central bankers may do.Just as Roosevelt went out of his way to remove gold from the marketplace, the central bankers of today may eventually determine to do the same thing.
Related Posts:
The article is reproduced in accordance with Section 107 of title 17 of the Copyright Law of the United States relating to fair-use and is for the purposes of criticism, comment, news reporting, teaching, scholarship, and research.
No comments:
Post a Comment
Vatic Clerk Tips: After 7 days, all comments to an article go into the moderation queue for approval which happens at least once a day. Please be patient.
Be respectful in your comments, keeping in mind that these discussions will become the Zeitgeist of our time that future database archeologists will discover. Make your comments worthy and on the founding father's level in their respectfulness, reasoning, and sound argumentation. Prove we weren't all idiots in our day and age. Comments that advocate sedition or violence are not encouraged. Racist, ad hominem, and troll-baiting comments might never see the light of day.